Precipio(US:PRPO)2019-11-14 00:43Financial Data and Key Metrics Changes - The company's Q3 revenue was lower than the prior quarter, with reported revenues year-to-date at $2.4 million, reflecting a 12% increase compared to the same period in 2018 [17][18] - The net loss for Q3 was $2.4 million, an improvement from a net loss of $4.1 million in the equivalent period in 2018, primarily due to a $1.6 million write-off associated with Goodwill [23] Business Line Data and Key Metrics Changes - Pathology services revenue continued to grow, but pharma revenues were virtually nonexistent in Q3 due to project phases that did not generate business [11] - October case volume increased by almost 20% above the Q3 average, indicating a rebound in pathology volume [11] Market Data and Key Metrics Changes - The company experienced a summer slowdown, particularly in August, leading to a sharp decline in pathology volume due to customer vacations [11] - Ordering patterns have rebounded in Q4, suggesting a recovery in demand [18] Company Strategy and Development Direction - The company aims to diversify its revenue by adding a third revenue line from products and services, which are less susceptible to reimbursement issues [12] - The introduction of IV-cell and HemeScreen products is expected to generate revenue for the first time in Q4, with significant growth potential anticipated [14] Management's Comments on Operating Environment and Future Outlook - Management expressed disappointment with Q3 results but emphasized that the decline is temporary and not indicative of a long-term trend [15] - The company is committed to growth and fiscal responsibility, aiming for cash flow breakeven during 2020 [30][26] Other Important Information - Cash on hand as of September 30 was $1.7 million, an increase of $1.3 million from year-end December 2018 [25] - The company has successfully reduced spending in certain areas, enabling a focus on growth initiatives [24] Q&A Session Summary Question: What are the expectations for future revenue growth? - Management projected a 15% increase in revenue but fell short in September due to decreased patient referrals [18] Question: How is the company managing its operating expenses? - The company is focusing on cost reductions and efficiencies through outsourcing and external systems, which have yielded both recurring and non-recurring savings [21] Question: What is the outlook for the new product lines? - Management is optimistic about the IV-cell and HemeScreen products, with expectations for significant revenue contributions in 2020 [22]