AI
Monday, November 11, 2024 10:55:45 PM
SRTS ($7.05) Potential trouble ahead after Q3?
Was thinking of playing earnings on this one, so I went to their largest customer's website (SkinCure) to see how they were doing, will there be more orders, etc. Read some of the latest press releases and stumbled across something that may finally explain that more than 70% drop in sales SRTS experienced several quarters ago, which has always perplexed me. It turns out, Sensus's largest customer is going into competition with them. SkinCure will be making their own machines. That doesn't seem good when historically 70-80% of SRTS sales come from that customer. SkinCure's been developing its competing technology for a while.
Now to me speculating. I'm guessing SkinCure was perfecting things on their machines and thought they would have FDA clearance by a certain date and stopped ordering from Sensus. That would account for the huge, sudden drop in sales for Sensus. But coming out of Covid the FDA approval process was backed up, there were supply chain issues, things took a little longer than expected, and so SkinCure came back to Sensus and placed what they hope will be one final order. This has given SRTS a few good quarters again, but that order should have been totally filled in Q3.
The following image is the last two paragraphs from a harmless sounding PR where the headline is about how their technology is going to be featured in an upcoming Public Service Announcement. This snippet is from the May 8, 2024 press release (link to full PR below this image):
https://tinyurl.com/54bym6tf
Was thinking of playing earnings on this one, so I went to their largest customer's website (SkinCure) to see how they were doing, will there be more orders, etc. Read some of the latest press releases and stumbled across something that may finally explain that more than 70% drop in sales SRTS experienced several quarters ago, which has always perplexed me. It turns out, Sensus's largest customer is going into competition with them. SkinCure will be making their own machines. That doesn't seem good when historically 70-80% of SRTS sales come from that customer. SkinCure's been developing its competing technology for a while.
Now to me speculating. I'm guessing SkinCure was perfecting things on their machines and thought they would have FDA clearance by a certain date and stopped ordering from Sensus. That would account for the huge, sudden drop in sales for Sensus. But coming out of Covid the FDA approval process was backed up, there were supply chain issues, things took a little longer than expected, and so SkinCure came back to Sensus and placed what they hope will be one final order. This has given SRTS a few good quarters again, but that order should have been totally filled in Q3.
The following image is the last two paragraphs from a harmless sounding PR where the headline is about how their technology is going to be featured in an upcoming Public Service Announcement. This snippet is from the May 8, 2024 press release (link to full PR below this image):
https://tinyurl.com/54bym6tf
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