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  5. PRN: Your latest thoughts? [Profound Medical Corp.]
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Q: Your latest thoughts? Thanks

Asked by Bill on November 09, 2022
5i Research Answer:

During the recent quarter, PRN EPS beats expectations while revenues fall short. For the third quarter of 2022, PRN reported revenues of $2.0 million, compared to ~$2.5 million for the same period a year ago, missing estimates by 8%. Recurring revenue, which consists of the sale of TULSA-PRO® consumables, the lease of medical devices, procedures, and services associated with extended warranties, increased approximately 14% to $1.2 million, while the one-time sale of capital equipment declined 45% to $800,000. R&D expenses increased 17% this quarter eating into margins. PRN reported a net loss of $5 million, narrowing 17% from 3Q21. Loss per share of $0.24 improved from a $0.29 loss in 3Q21 and exceeded analyst expectations by 37%. During the earnings call, management noted longer waitlists for the TULSA procedure. Overall it was a decent quarter. We don't have much to add to prior comments. It remains a waiting game here, and with negative cash flow the $42M cash is not going to last forever.