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Aurora Annual report shows that this company is one of the few biotechs well on track to sustainable profitability.

Revenue - while sales of services, instruments and intellectual properties will be sufficient to achieve profitability, future royalty payments will be the icing on the cake. The continuing stream of licensees (who have done their won DD) indicates the viability of the technology to me.

Penalties - delivery of the missing pieces of technology is expected in the second half of 2000. I believe the missing piece for the UHTSS is software integration, and, while unfortunate, a delay on software development is not unusual. Total amount of penalties is not known, but with the amount of money the company has in the bank it is not critical.

R&D spending - as explained in the annual report the decrease in spending occurred because expenses were shifted to customer funded programs, i.e. research as such did not decrease. Obviously, this is excellent for the cash position of the company.

All in all, things look very good for ABSC, especially for the second half of the year, when final pieces of the technology will get delivered to clients.
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