Precipio 2018 Revenues Increase 66% over 2017; Company Takes Substantial Cost-Cutting Measures Towards Profitability
February 14 2019 - 8:18AM
Specialty diagnostics company Precipio, Inc. (NASDAQ: PRPO),
announced today its preliminary unaudited 2018 Revenues of $2.8M,
representing 66% growth over 2017 Revenues of $1.7M.
Furthermore, fourth quarter financials demonstrated continuous
movement towards the company’s target of profitability. Key metrics
demonstrate the company’s ongoing improvement of its financial
performance, with YoY revenue growth alongside the reduction of
costs, to ensure that its continuous growth translates into
bottom-line results.
Key metrics
The company implemented substantial cost-cutting measures in the
second half of 2018, the results of which have created a positive
impact on the company’s fourth quarter financials. Preliminary
pro-forma results show gross margin increased from approximately 1%
to 15% as lab efficiencies in both staffing and work processes
began to take effect. Management anticipates a continued upward
trend in gross margin over the coming quarters.
The company’s 4th quarter QoQ cash expenses dropped
approximately $700K (or 22%) from $3.1M to $2.4M while preliminary
revenues increased ~6% in a holiday-impacted fourth quarter. The
primary cost reductions were in the company’s public company
expenses (legal and audit) as well as leveraging laboratory
expenses, and improved sales force efficiencies.
This resulted in a direct impact to the bottom line, reducing
the company’s operating loss (prior to non-cash items) from $2.7M
to $2.1M for the quarter. The impact of these changes will be the
lowering of the company’s cash break-even point, which we expect in
turn will lead to a slower cash burn, a reduction in capital needs,
and a more rapid and clearer path to profitability. Management
believes these metrics will reduce dilution to shareholders and
positively impact share price.
Path to Profitability
Management notes that the company continues to deploy its
efficiency opportunities, and anticipates further improvement that
will impact the company’s financial performance in the first half
of 2019. Continued revenue increases from our pathology business
and pharma projects, as well as new product revenue from our
recently developed and launched proprietary technologies -
HemeScreen and IV-Cell, are anticipated to drive the company’s
growth.
“Achieving a clear path to profitability is the chief goal of
the management team. While we are pleased with the direction of
these results, we are far from finished with the process of
reducing expenses for the company while growing the top line, and
increasing gross margins,” said Ilan Danieli, Precipio’s Chief
Executive Officer. “We are focused on generating shareholder value.
Our goal for 2019 is significant progress toward the company
standing on its own feet.”
Shareholder’s update call
Company management will hold a shareholder conference call on
February 21th at 4:30PM EST, to review the company’s performance
and discuss its strategic goals for 2019. During the call, as a
recap to existing investors, and an introduction to new investors,
management will also review the company’s business model and
provide an overview of the product and services the company offers.
Lastly, management will address the concerns of shareholder value,
and the plans to achieve a recovery of the company’s stock.
About Precipio
Precipio has built a platform designed to eradicate the problem
of misdiagnosis by harnessing the intellect, expertise and
technology developed within academic institutions and delivering
quality diagnostic information to physicians and their patients
worldwide. Through its collaborations with world-class academic
institutions specializing in cancer research, diagnostics and
treatment such as the Yale School of Medicine and Harvard’s
Dana-Farber Cancer Institute, Precipio offers a new standard of
diagnostic accuracy enabling the highest level of patient care. For
more information, please visit www.precipiodx.com.
Forward-Looking Statements
Certain statements in this press release constitute
“forward-looking statements,” within the meaning of federal
securities laws, including statements related to ICP technology,
including financial projections related thereto and potential
market opportunity, plans and prospects and other statements
containing the words “anticipate,” “intend,” “may,” “plan,”
“predict,” “will,” “would,” “could,” “should,” and similar
expressions, constitute forward-looking statements within the
meaning of The Private Securities Litigation Reform Act of 1995.
The Company's actual results could differ materially from those
anticipated in these forward-looking statements as a result of
various factors. Factors that could cause future results to
materially differ from the recent results or those projected in
forward-looking statements include the known risks, uncertainties
and other factors described in the Company’s definitive proxy
statement filed on May 29, 2018, the Company’s Quarterly Report on
Form 10-Q for the quarter ended September 30, 2018 and on the
Annual Report on Form 10-K for the year ended December 31, 2017 as
well as the Company’s prior filings and from time to time in the
Company’s subsequent filings with the Securities and Exchange
Commission. Any change in such factors, risks and uncertainties may
cause the actual results, events and performance to differ
materially from those referred to in such statements. All
information in this press release is as of the date of the release
and the Company does not undertake any duty to update this
information, including any forward-looking statements, unless
required by law.
Inquiries:
investors@precipiodx.com
+1-203-787-7888
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