Thursday, August 03, 2023 8:03:56 PM
SRTS - I'm still not happy with the explanation of how sales just tanked like 60-70% because dermatologists' customers just weren't coming in. I don't know, that still doesn't pass the smell test for me. All people with aesthetic procedures and skin cancer just collectively decided to stop coming in during the same quarter? Granted that was when a lot of the inflation craziness was going on. I guess anything is possible, but still doesn't quite jibe with me. Company was caught totally off guard by that (why? how?), and if I recall correctly, they were buying back stock at around $7-9 per share. I also don't like that they're now using headlines comparing earnings sequentially instead of y-o-y, which is what they've always done. I never like to see a change in the reporting manner just so they can make the numbers look better than they really are.
This quarter revs were $4.5m, which is up 33% sequentially from last Q, but down from $12.1m a year ago. That's a massive, massive yoy decline. Why no talk of returning to that level of revenue? Shipped 13 systems this Q vs 10 in the prior Q, but down from 33 in the prior-year quarter. Again, just a massive decline. Ceo is now hoping for 60 systems shipped for the year.
So I guess this is just a new, lower level from which things might grow a little bit each quarter? We're just supposed to accept that?
Q4 of 2022 revs were $13.1m vs $13 in prior year. So no growth but no sign of any huge trouble either. And then out of nowhere in Q1 of 2023 revs down to $3.4m vs $10.3 in prior year. Just quick math in your head, that's nearly 70% down in one quarter? Really? Anything's possible, but that's pretty weird.
I went back and looked at 10-Q from last quarter and I had missed how dependent they are on one customer. They also had a loan arrangement with Silicon Valley Bank (which had some odd practices and collapsed in Q1 of 2023) There was talk of some revenue washing schemes with SVB and high tech companies had to leave ALL of their huge cash balances with SVB. I doubt we'll ever know what happened there, but a bit odd for a little company in Boca to have a relationship with Silicon Valley Bank rather than someone local
Again, it could all be exactly as they say. But the whole scenario seems a little odd. Seems like the company is encouraging investors to believe the old revenue numbers are a thing of the past.
This quarter revs were $4.5m, which is up 33% sequentially from last Q, but down from $12.1m a year ago. That's a massive, massive yoy decline. Why no talk of returning to that level of revenue? Shipped 13 systems this Q vs 10 in the prior Q, but down from 33 in the prior-year quarter. Again, just a massive decline. Ceo is now hoping for 60 systems shipped for the year.
So I guess this is just a new, lower level from which things might grow a little bit each quarter? We're just supposed to accept that?
Q4 of 2022 revs were $13.1m vs $13 in prior year. So no growth but no sign of any huge trouble either. And then out of nowhere in Q1 of 2023 revs down to $3.4m vs $10.3 in prior year. Just quick math in your head, that's nearly 70% down in one quarter? Really? Anything's possible, but that's pretty weird.
I went back and looked at 10-Q from last quarter and I had missed how dependent they are on one customer. They also had a loan arrangement with Silicon Valley Bank (which had some odd practices and collapsed in Q1 of 2023) There was talk of some revenue washing schemes with SVB and high tech companies had to leave ALL of their huge cash balances with SVB. I doubt we'll ever know what happened there, but a bit odd for a little company in Boca to have a relationship with Silicon Valley Bank rather than someone local
Again, it could all be exactly as they say. But the whole scenario seems a little odd. Seems like the company is encouraging investors to believe the old revenue numbers are a thing of the past.
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