09/28/2023 | Press release | Distributed by Public on 09/28/2023 08:57
New customer orders received in Q3 exceed $1M annualized revenue
NEW HAVEN, CT, Globenewswire - (September 28th, 2023) - Specialty cancer diagnostics company Precipio, Inc. (NASDAQ: PRPO) announced that new customer orders are expected to bring total Q4 HemeScreen revenues to an estimated $1.2M.
In a recent announcement, the company announced that the product revenue necessary to reach cash flow breakeven has been reduced to $6M annualized run rate, or $1.5M/quarter. As of today, Precipio forecasts product revenue in Q4 which is within $300,000 of quarterly cash flow breakeven. Adding these new customers brings the company to approximately $1.2M in product revenue, or 80% of that goal.
Company conversion rate data shows a very high close rate once the company's sales team gets in front of the customer and presents the product and its value proposition. Ilan Danieli, CEO, said "We are working on increased collaboration with our channel partners to open more doors, as well as help our customers shorten the decision-making timeline and adoption cycle."
Precipio's data shows, however, that very few customers decline the solution, or go with a different manufacturer. As the company continues to grow and improve the effectiveness of its sales and marketing efforts, management expects to capture a significant portion of this $400M TAM.
"We are seeing repeated confirmation that our HemeScreen product line stands head & shoulders above competition and alternative diagnostic products when it comes to robustness, ease of use, and economics, and this has translated into a very high close rate." said Ilan Danieli, CEO. "Although the sales cycle is often lengthy, the good news is that the adoption rate is high. This tells us that it is not a matter of "if", but rather a matter of "when" the laboratory becomes our customer. I am encouraged by these results which move us closer to meeting our short-term cash flow breakeven goals; as well as an indication of our ability to capture substantial market share."
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.
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