Precipio(US:PRPO)2021-11-16 00:39Financial Data and Key Metrics Changes - For the nine months ending September 30, 2021, audited revenues increased by 55% to $6.4 million, up by $2.3 million from the same period in 2020 [33] - Gross profit rose to $1.1 million, with gross margins improving by 60% to 80% compared to the same period in 2020 [33] - Allowance for doubtful accounts decreased from around 25% to below 10%, and days sales outstanding (DSO) improved from above 100 days to below 30 days, indicating significant cash flow improvements [34] Business Line Data and Key Metrics Changes - Clinical pathology services experienced flat case volume and revenues in Q3, marking a departure from previous growth trends [8] - The onboarding of AON, a large oncology practice, was highlighted as a significant success, expected to reduce cash burn by approximately 25% once fully operational [17] - The IV-Cell product line has faced challenges in onboarding due to COVID-related restrictions, but progress is being made with several accounts [19] Market Data and Key Metrics Changes - The company is actively working to onboard other sizable customers to enhance revenue and profitability in the diagnostics product division [17] - The diagnostics product division is expected to be the primary growth engine, with a focus on B2B business that fosters recurring revenue streams [24][25] Company Strategy and Development Direction - The company plans to reorganize into two divisions: clinical diagnostic services and diagnostics product division, aiming to enhance operational efficiency and support R&D [20][24] - Continued investment in R&D is anticipated, with a goal to double the product portfolio next year, focusing on clinically impactful technologies [28] Management's Comments on Operating Environment and Future Outlook - Management acknowledged a challenging quarter but expressed confidence in overcoming these challenges and emerging stronger [7][35] - The company aims to transition from a micro-cap to a more mature company, attracting long-term institutional investors while ensuring stability and growth in share price [31] Other Important Information - The company emphasized the importance of maintaining communication with shareholders and the need to focus on operational improvements rather than short-term stock price fluctuations [30][32] - Management expressed pride in the team's dedication and commitment to improving business operations and patient care [36] Q&A Session Summary Question: What are the expectations for future growth? - Management highlighted the potential for significant revenue growth through the successful onboarding of large customers and the introduction of new technologies [17][28] Question: How is the company addressing recent operational challenges? - The team has worked diligently to resolve operational issues, and improvements in the sales process are already yielding positive results [11][10]