Though Roka Bioscience Inc. (NASDAQ: ROKA) reported mixed results for 2Q2016, the management provided multiple hints that the company’s long-term prospects are bright.
The food safety crises that have seen millions of products recalled in the recent years are to Roka Bioscience Inc. (NASDAQ: ROKA) a massive revenue opportunity. The company develops technology for detecting foodborne pathogens. It develops its products under the Atlas brand.
48 million people sickened by food
In a recent investor update, Roka Bioscience sought to provide a glimpse into the market opportunity it is pursuing with its Atlas platform. The company said for several years now in the U.S., some 48 million people get ill and some 3,000 people die each year because of foodborne infections. That’s a crisis that is putting pressure on food producers and regulators to heighten the safety of food supply.
Roka Bioscience says it has the solution that can give food producers and regulators the peace of mind that someone is not going to get sick because of the food they consumed. The company said that its Atlas platform renders more accurate food pathogen detection than any other method on the market today.
FDA gets Atlas system
One of the clients that Roka Bioscience Inc. (NASDAQ: ROKA) has sold its innovative Atlas system to is the U.S. Food and Drug Administration (FDA). The regulator acquired an Atlas system for its laboratory from Roka Bioscience in 2Q and it will be evaluating the system as a foodborne pathogen detector.
With its Atlas system, Roka Bioscience says customers can run more samples in less time and use less workforce compared to other food pathogen detection methods.
Not only is Roka Bioscience looking at the regulatory market for its Atlas platform, but the company believes that food producers would like to have the technology. Besides the issue of regulatory pressure, producers lose money and put their reputation at stake when they have to recall products from the market because of pathogen contamination.
As such, ROKA sees strong demand for its Atlas system among food producers.
2Q2016 highlight – Roka Bioscience Inc. (NASDAQ: ROKA)
Roka Bioscience Inc. (NASDAQ: ROKA) posted EPS loss of $0.43 in 2Q2016, missing the consensus estimate of breakeven EPS. However, revenue of $1.82 million not only grew 23.8% YoY, but also handily beat the consensus estimate.