At the start of 2023, management set three goals, all focused on achieving cash flow breakeven going forward:
- Target #1: For the pathology division, reaching estimated annualized revenues of
$14M , which was expected to enable the division to achieve cash flow breakeven based on its cost structure. - Target #2: For the products division, reaching estimated annualized revenues of
$8M , which was expected to enable the division, and therefore the entire company, to achieve cash flow breakeven based on the company cost structure at the time. - Target #3: Maintaining or improving the company’s cost structure, to ensure that Target #1 and Target #2 do not have to be increased.
On our last shareholders call on
As a direct outcome of achieving Target #1 and #3, the company’s Target #2 for the products division to enable the division, and therefore the entire company to achieve cash flow breakeven based on the current cost structure - is
In Q3-2023 the company reported
We would like to remind shareholders to expect more quarter-to-quarter volatility in pathology division revenue than in product division revenue. The pathology division revenues are more prone to fluctuations because they are driven by individual physician behaviors, patient testing frequency, and unique testing orders for their patient testing, as opposed to laboratories using our products that have relatively consistent testing volumes.
In addition, in the products division, we are focusing on larger accounts to maximize our selling effectiveness, and therefore, sales growth in that division is likely to come in spurts rather than slow steady increases as might be more likely to occur in the pathology division. Therefore, we are more focused on meeting our product division goals. We expect Q4-2023 revenues to be approximately
“In 2023 we set aggressive goals, and as of Q3, we have met two of the three goals. In doing so, we have significantly altered the company’s cost structure. The team’s primary focus is on reaching and exceeding the product division revenue goals, and getting the company to breakeven as quickly as possible,” said
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Forward-Looking Statements
This press release contains “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. All statements contained in this press release that do not relate to matters of historical fact should be considered forward-looking statements, including, without limitation, statements regarding the targets set herein and related timing.
Except for historical information, statements about future volumes, sales, growth, costs, cost savings, margins, earnings, earnings per share, diluted earnings per share, cash flows, plans, objectives, expectations, growth or profitability are forward-looking statements based on management’s estimates, beliefs, assumptions and projections. Words such as “could,” “may,” “expects,” “anticipates,” “will,” “targets,” “goals,” “projects,” “intends,” “plans,” “believes,” “seeks,” “estimates,” “predicts,” and variations on such words, and similar expressions that reflect our current views with respect to future events and operational, economic and financial performance, are intended to identify such forward-looking statements. These forward-looking statements are only predictions based on management’s current expectations. These statements are neither promises nor guarantees, but involve known and unknown risks, uncertainties and other important factors that may cause our actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by the forward-looking statements, including, but not limited to, the important factors discussed under the caption “Risk Factors” in our Annual Report on Form 10-K for the fiscal year ended
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