Projected cash burn reduced by $1.5 million annually from Three Operational Efficiency Projects
June 07 2023 - 9:30AM
Specialty cancer diagnostics company Precipio,
Inc. (NASDAQ: PRPO), announces that several operational
improvement initiatives which commenced at the start of the year
have begun to impact the cash burn and bottom line profitability.
These operational efficiency improvements are
independent of the contribution that the revenue continues to
provide to the Company. While the minority part of these
improvements include cost cutting in various areas, the majority of
these are key improvements to the business operations, several of
them described below:
- Billing transition. Precipio’s team
recently completed the transition from using an outside billing
firm to bringing it in-house. This will translate into savings of
approximately 4% of revenues, or $0.4M/year at current run
rates.
- Pathologist fees. Precipio has
restructured its arrangement with the pathologists, reducing cash
burn by approximately $0.4M/year.
- NGS testing in-house. By the end of
this quarter (Q2), Precipio expects to transition its next
generation sequencing (NGS) testing to be run in-house instead of
sending it out, generating an increase of approximately $1.7M/year
in revenue and $0.7M/year in gross profit.
These examples represent an impact of over $1.5M
cash annually to the bottom line, that is expected to materialize
effective Q3-2023. The expected outcome will be a reduction in
quarterly cash burn from approximately $1.5M per quarter in
Q2-2023, to approximately $1.1M in Q3-2023, a reduction of 25%.
“The combination of continued top line growth
along with improved operational efficiencies, are the key to the
company’s continued cash burn reduction towards breakeven,” said
Ilan Danieli CEO. “Our management team continues to implement
additional opportunities to improve our business. We are
progressing towards the goal of financial independence and a
profitable company, and I’m excited to be in a position where we
have this goal within our reach.”
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, as well as proprietary products that serve
laboratories worldwide. Through its collaborations with world-class
academic institutions specializing in cancer research, diagnostics
and treatment, Precipio offers a new standard of diagnostic
accuracy enabling the highest level of patient care. For more
information, please visit www.precipiodx.com.
Please follow us on LinkedIn, Twitter
@PrecipioDx and on Facebook.
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, including, among others, statements related to
the expected or potential impact of the novel coronavirus
(COVID-19) pandemic, and the related responses of the government,
consumers, and the company, on our business, financial condition
and results of operations, and any such forward-looking statements,
whether concerning the COVID-19 pandemic or otherwise, involve
risks, assumptions and uncertainties. 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, subject to risks
and uncertainties, and actual results could differ materially from
those discussed. Important factors that could affect performance
and cause results to differ materially from management’s
expectations, or could affect the company’s ability to achieve its
strategic goals, include the uncertainties relating to the impact
of COVID-19 on the company’s business, operations and employees and
the other factors that are described in the sections entitled “Risk
Factors” and “Management’s Discussion and Analysis” in the
company's Annual Report on Form 10-K for the fiscal year ended
December 31, 2022, as updated from time to time in the company’s
Securities and Exchange Commission filings.
The company’s forward-looking statements in this
press release are based on management’s current views, beliefs,
assumptions and expectations regarding future events and speak only
as of the date of this release. The company undertakes no
obligation to publicly update or revise any forward-looking
statements, whether as a result of new information, future events
or otherwise, except as required by the federal securities
laws.
Inquiries:
investors@precipiodx.com
+1-203-787-7888 Ext. 523
Precipio (NASDAQ:PRPO)
Historical Stock Chart
From Jun 2024 to Jul 2024
Precipio (NASDAQ:PRPO)
Historical Stock Chart
From Jul 2023 to Jul 2024