Precipio(US:PRPO)2019-08-22 00:48Financial Data and Key Metrics Changes - Total reported revenues grew by 32% quarter over quarter and 8% year over year for the six-month period ending June 30, 2019 [18] - Cash reserves increased to $1.2 million as of June 30, 2019, compared to $0.4 million at year-end December 31, 2018 [26] - The company executed a reverse stock split of 15 for 1 on April 26, 2019, resulting in 5.9 million shares outstanding as of June 30, 2019 [17] Business Line Data and Key Metrics Changes - Diagnostic testing accounts for almost all reported revenue, with pathology services representing approximately 75% and pharma services providing the remaining 25% [19] - The sales force has expanded to cover 18 states, contributing to revenue growth from pathology diagnostic testing primarily from office-based oncologists and multi-oncologist physician groups [20] - New laboratory processes, HemeScreen and IV-cell, are expected to expand revenues and improve clinical outcomes [21][22] Market Data and Key Metrics Changes - The company is making significant inroads into international markets, including Brazil, Asia, South America, Europe, and the Middle East, which will diversify revenue sources away from reliance solely on the U.S. market [13] - The New Haven, Connecticut pathology lab received CAP approval in August, which is anticipated to translate into additional diagnostic sales from key oncology practices [19] Company Strategy and Development Direction - The company is focused on expanding its sales force and improving customer relationships to drive revenue growth [20] - Management is confident in the technology and its application, with ongoing validation processes expected to enhance the company's market position [30] - The company aims to achieve cash flow breakeven and profitability through effective marketing of IV-cell and HemeScreen [27] Management's Comments on Operating Environment and Future Outlook - Management acknowledges the volatility in stock price but emphasizes stable revenue growth and positive prospects for product validation [29] - The company is committed to reducing public reporting expenses and reinvesting savings into sales force expansion [25] - Management expresses confidence that completed validation processes will have a significant positive impact on finances and market position [30] Other Important Information - The company settled significant legal claims from the 2017 merger, alleviating financial burdens [15][16] - Operating expenses have remained level year over year, with reductions in certain G&A expenses allowing for reinvestment in sales [24] Q&A Session Summary Question: What is the outlook for the company's growth? - Management believes that the annualized growth rate will continue to increase, exceeding the current rate of 15% [18] Question: How is the company addressing stock price volatility? - Management notes that the stock's volatility reflects market perception rather than company performance, with stable revenue growth demonstrated [29]