On August 6, SIGA Technologies (NASDAQ:SIGA) reported financial results for the three and six months ended June 30, and the numbers tell two very different stories depending on which quarter you compare them to. Revenue and profit both cratered from a year ago, yet the company still turned a profit, paid out a special dividend, and closed the books on a major government contract. For a stock priced at less than three times forward earnings, that combination is worth unpacking.
A Contract Finally Wrapping Up
The quarter’s headline number is $37 million in TPOXX sales spread across three customers. That included $24 million of IV TPOXX delivered to the US strategic national stockpile and $13 million of oral TPOXX sold to two international buyers. CEO Diem Nguyen pointed to deliveries spanning the US, Europe, and the Asia-Pacific region, across multiple formulations, as evidence the company is executing its plan to sell TPOXX to a broader mix of regions and customers rather than leaning on a single buyer.
That IV shipment also marked something bigger. The deliveries completed the last procurement order under the 19C contract, the government agreement that has anchored SIGA’s stockpile sales for years. Wrapping up that order cleanly, alongside new international oral TPOXX business, supports the idea that SIGA can keep generating meaningful revenue even as its original government relationship winds down. The company also stayed profitable through the transition. Net income came in at $12.5 million for the quarter and $9 million for the first half of the year, and it still had room to pay shareholders a special cash dividend of $0.6 per share, declared March 26 and paid out April 23 to holders of record as of April 7. A company burning cash could not make that call.
The Comparisons Look Rough
Set next to a year ago, the quarter looks like a steep step down. Product sales fell to $37.9 million from $79.1 million, and six-month product sales dropped to $41.4 million from $84.9 million. Total revenue followed the same path, sliding to $41 million from $81.1 million in the quarter and to $47.2 million from $88.2 million over six months.
Profitability fell even faster than revenue. Operating income dropped to $13.9 million from $45.7 million in the quarter, and to $8.6 million from $43.4 million over six months. Net income slid to $12.5 million from $35.5 million, and diluted earnings per share fell to $0.17 from $0.49. The six-month numbers show the same pattern, with EPS down to $0.13 from $0.49. And with the last 19C procurement order now delivered, the specific piece of business that drove those bigger prior-year numbers will not simply repeat itself, leaving the company to lean on the newer international and stockpile orders it is still building out.
What The Market Is Pricing In
Hedge fund ownership slipped from 20 funds to 18 in the most recent quarter, a modest pullback rather than a rush for the exits. Short interest sits at 8.26% of float, a level that reflects real skepticism without signaling a crowded bearish bet. Against that backdrop, SIGA trades at a forward P/E of just 2.99 as of September 4, a multiple that low usually means the market is not pricing in much earnings growth, or is discounting the revenue for being lumpy and contract-dependent. That gap between a still-profitable company and a rock-bottom multiple is the tension running through this stock right now.
Where This Leaves Investors
SIGA closed out its largest government contract cleanly while still posting a profit and funding a special dividend, but the year-over-year comparisons show just how much of its prior revenue came from that now-finished 19C order. The forward P/E near 3 suggests the market is bracing for more declines rather than crediting the company for staying profitable through the transition. For the case to strengthen, the international and stockpile orders highlighted this quarter would need to scale into a steadier revenue base.
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