Precipio (PRPO) 1 Apr 212020 Q4 Earnings call transcript

Welcome to the Precipio Q4 2020 and Yearend Shareholder Update Call. All participants will be in a listen-only mode. [Operator Instructions] Please note that the conference is being recorded. Statements made during this call contain forward-looking statements about our business.

You should not place undue reliance on forward-looking statements as these statements are based upon our current expectations, forecasts and assumptions and are subject to significant risks and uncertainties. of identified intend, such predict, similar plan, continue the be should, may, potential, meaning. may other or expect, or could, anticipate, negative statements by terms as words will, forecast, words These or terms of these believe, estimate, those year include December listed Risks from as report and Exchange but our limited subsequent XX, the could the matters are Risk differ that any Factors detailed is annual for in file with and the which Exchange our XX-K uncertainties our Securities on Commission actual Form not on Securities ended filings forth and with in to forward-looking under other in XXXX, results cause materially Commission. the set statements may to well as risks available These at www.sec.gov. are reports statements and publicly required whether only is date information, or any including new forward-looking statements as and including otherwise, Statements date future unless events these provided they an obligation to forward-looking any undertake speak of not earlier a by information result are information, except to we do indicated or law. update as the statements,

let the me to over Danieli, CEO. Now, Please ahead. call Precipio's go Ilan hand

everyone. for like XXXX I good thank you to all Thank and filing shareholder you joining afternoon, yearend post our would XXK call.

beyond. provide of and me CFO XXXX who our company thoughts finances. the During and our share on Iberger, our few and update I'll XXXX of the the start beyond. going has I'll recap Carl With is a and XXXX is perspective the on with call, company today XXXX plans a will his on close business where since the progress made our and for

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market business In strategy. needed both we we -- technologies, a the the of use technology go the in to proper to have [indiscernible] customers create after sales unit channel IV-Cell order We working and these to for were we lab. format first a all a our developed

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with open our set. would be ADS with was in sites innovation. a US conduct identify strategy ADS a Europe to step first to data would new The view the and several in

for comfortable the this precaution feels shift as everyone them backset to few quarantine. meet market will complete IV-Cell and track. work. our always to a proposition, arrangements, With in penetration. the to safety become with show in our media With the social on transition customer. to labs by present that compared current they requirement compelling they use with program to work date, results customers we many use. With sufficiently the struggling labs regulations is and move their volume a trial we well impact the already and strategy be adapt capacity, could will successful respect and to file crippled them need the order in study then of We clinical broader will to pockets take and results include typically to see as meet understaffed timeline The to the [indiscernible] to cloud the like a to IV-Cell the customer using value

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have Since partnership presented customers force expressed stage. customers doors put in customers pipeline Our to and impressive. have of XX than have of their the sales and already interest revenue on-boarding various their of in active us maker on in rapidly with generating the nothing open to entrenched sales majority board. in deeply and ability and a of been mid-January short launch is and solid more with we of We customers the them bringing HemeScreen the a and right growing front decision

sell. of us. ahead continue to strong and to sell the to growth Our other of lies for is that leaving of I is practices we see excited these customers strongest oncology made build goal the where products our one believe our going HemeScreen HemeScreen I and am be a we've base company as we to progress to and continue really

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be to providing testing but or additional it mean In will revenue control bonus the our it bonus which cash, happen and look to to terms does deliver nice that magnitude may look it prefer a we at it, at the very might to we we not or if celebrate may not and may happen and of just nice need are a and which way but difficult that predict, whether COVID the that. company,

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over hand Carl. CFO Now, business see our it we on let the to end thoughts few where some financial with I'll and and XXXX, performance me a then our on to Carl, thoughts share

IV-Cell release our afternoon. a his are larger in Precipio this that followed XXXX of Iberger, comments covered Carl items. press some a to opening growth filing and oncologists provided number sales take XXK like market oncology headway press Financial I Good topline Leon. labs. the issued In impressive office-based you, Ilan a for the of developing add is This HemeScreen and a am Chief commercial Thank XX. finally making Monday, reception receiving Yesterday the Precipio's we additional March results. on Officer. distribution opportunity our to I'd regarding synopsis release services our remarks, of pathology with

action March prior business company into force services, tail timely. sales and we in be our just the diagnostic This early from of pathology extremely reconstituted to the and the XXXX. end February First reorganized COVID, to proved interruption at by shutdown

the shutdown. operations enabled economic Our the of many normal initiatives address resulting business Precipio actually to from disruptions of

issues, basic reps. accounts on of by our physician with list First access sales that to just

of with February affected we and of through case early issuing a sales our and account in from March During up, allowed we the cases QX onboarding normal lab routines. acquisition year, force shutdown COVID back volume seamlessly operations business XXXX, QX our of ramping growth grew customers experience as OncoMetrix Healthcare's in reviewing and executed accounts year QX lab of and throughout the the logistics we from our changes the non-cash, and decisions the Poplar organization and minimal new sales year as business non-equity billable move actually XXXX, our XXX%. our XXXX grow and of reported volumes XXK, over to Stepping volume business preparation add

our While QX results unaudited are as completing 'XX, are initial just impressive. we

approximate Given variety in revenues the the Midwest, to Southeast QX project of impact we storms of and of XXXX.

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expenses increased all our costs. text a Our in comparison in batch leverage XXXX. processing million and gross expenses, extent maximize to past our to purchase XXXX our profit XX increases services enabled purchase operations of $X.X reducing to by lab large consolidate to

For increased from XXXX, margin gross to X%. XX%

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are As total to upfront reported HemeScreen and cash see beginning the are our material costs flow being a build behind HemeScreen we in investment timeline profit revenues accelerating to revenues, and breakeven. gross us, factor

in operating operating an or X% XXXX, almost increase expenses, less during $X.X while revenues towards than than were period million to Moving $X.X less when doubled. expenses compared XXXX, same million

offering we took of were expand focused those in savings Within on actively build to working panels HemeScreen selling to XXXX, we a initiatives. XXXX, development G&A R&D HemeScreen reinvested During on and those as and HemeScreen practices. and the expenses. accounts, we We reducing of we look suite oncology the in R&D

balance the increase of of definitely XXXX. XX up to burn, a a accrued been able million reduce With the $X.X was [ph] to increase $X.X on increase we've of on growth stabilizing on the million. DSO company made XX cash the cash end provide XX-XX-XXXX, sales financial accounts an balance sheet, receivable total accounts receivable days, only has growth to shore $X.X payable expenses. and million Moving gains at to a provided decrease from hand, liabilities flexibility. degree, sheet, days reduce Ending of more the XXXX was our and accounts

reimbursement in payable pleased As accrued team. and the much billing, level year-over-year our very remain turned expenses the results majority essentially Accounts patient the company's revenue on a by of is collections of I'm book per needs company's business in assisted collected improvement and investments have R&D. operations. cash with The larger the the the in our and improvement and -- in revenue DSO accelerating with case

growth by in reassessed expanding with contracts increase CapEx, the the upgraded reference utilized previously Moving operations additionally reagent that XXXX, allows had initiatives in each case and in-house company's continually and for operations the to and building of to XXXX, CapEx continual the encouraged operation. will in HemeScreen emphasis be renegotiating in equation our the our volume for Key QX testing times company's equity finance major out programs and molecular was revenues. case fuel ended seeing capabilities. the pathology impact with would bring this lengthy project group very will line on reporting to services Financing the equipment testing XXXX, future. quarter. by will be We're in services, met we our and reduction we growth existing volume rise, lab on Entering on quality rate burn operations lower that in expensive to assessment competencies, equipment costs. needs our diagnostic monthly customers. with company and anticipated our that suppliers and and rental change revisited diagnostic This the every a Precipio cash to revenues The lab provide

earlier of the moving performance our actively and resulting COVID, uncertain. revenue yet stated while Ilan forward, is COVID in antibody endeavor regarding as testing As are very we

material we revenue in As do a impact our such, not projections. of have COVID

information company becomes As for XXXX very additional provide we a unique move as the was material on this available. In data forward, period will summary, year product company. the and challenging a shareholder

focused will driving Ilan? Thank presentation portion on time, company my growth XXXX the return we continue I our in this to and we we Operationally, and of volume Going the continual through anticipate build. we are Financially, as over done to improvement the with excited and strength, forward, breakeven. but our revenues leveraging HemeScreen gain and you. growth I Ilan. about At opportunities. truly services to remain meeting pathology the assets

Yes the you, and your on I Thank team mute. are you job, Carl. sorry was I outstanding appreciate doing.

we patient Pathology day and the offers supported Let thoughts team the our the be with our team unique dedicated drive where starts Pathology me us business by real growth growth and doctor will to end on that our business. opportunities in and this product see describe every products this a every the beyond. deliver sees. business think business ability in create, where exists. few I the is closing is for I product The customer new also the It ensure facilitates and really the on and on that for of our side test engine service always sales we of develop our with to before. our XXXX that lab responsible top we've never core promise side of services think

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that exceeding both need the lastly, the in I in with line. continue same our team will be want solid we've customers. business anchor the that our and market are going products so you business company foundation to BXB are is are strong products those side ongoing finance more gain is and forward care what to revenues market and Therefore, With the which the a market execute business poised market from issues a achieve and value evening. pathology and [ph] we and than per parts our the and is by I And look deliver patient outstanding. thank XXXX, ICS from the to the ongoing out team labs Coming And becoming as to impact huge lead your you proposition year. substantial and will million these for a XXXX, to message our both and the that of speaking developing and customers strategy continue well is bottom for from you to product product our pathology support for growth. am go by our outside showing. products labs. products achieve short, to the with to products of business, results all our formidable Second, soon. In Thank the feedback for enable we we part our the continue and In firm and can tools grow creating of partners serve externally revenue our proprietary and obviously to nice are have ever, of to excited $XXX usage. strategy rapid used already I our

now concluded. The conference today's has you attending for presentation. Thank

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