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P L C SYSTEMS AŞ Message Board

  • participant42 participant42 Nov 15, 2010 9:21 AM Flag

    3rd quarter

    On the up side is a loss of only $5000! Yet a cash drop for the quarter of $140+k.
    And, ironically enough, TMR kit sale numbers that are virtually the same as one year ago--and, thus, with amortization actually a slight increase in TMR revenue income!

    And an announcement of PLC receiving a grant of $225+k in October (I've seen such grants in other small "science" companies in October--though this one is larger than many others (and, of course, smaller than some)--from a program that actually is part of the "Stimulus" plan of Obama's, providing grants to thousands of small companies in the medical product and testing field)).

    BUT, on the downside!

    An "uncharacteristic" decline in RG sales: to $17k from $275k!! To 25 kits and 1 console from 275 kits and 9 consoles! (Tauscher, in the PR, offers absolutely no explanation for this decline, but does say that [hopefully] the Mythos study results, presented in both Sept. and in October, with spur on PLC's distributors around the world.

    And, in this PR, Tauscher, when trying to find some positive things to say (like the TMR sale to Novadaq provided cash infusion and allows the company to focus on RG)), no longer uses the word "partners" for RG in regard to PLC's search for new funding, and makes no mention of any discussions or negotiations (albeit so far fruitless) with *anyone* in regard to funding or partnerships for PLC and its RG--rather, just that PLC continues to look for funding.

    Well, among the disappointments is not only the obvious radical decline in RG sales, and the absence of any attempt to explain it(!), but of course, not being able to point toward any discussions or negotiations during the quarter that had anything to do with parntership or RG funding or purchase.

    And, one wonders, if Tauscher thought that just signing up the variety of "distributors" around the world over the last years, was sufficient, without constant PLC attention to them: inquiries, letters, encouragement, status reports, reminders of RG and its initial successes, letters from satisfied customers reporting ongoing successful utilizations etc.,--all pushing his RG product, nudging his distributors, and finding out the number of sales and explanations for a lack thereof. Distributors need reminders. They have tens, hundreds, thousands of products and many distributors need hand-holding, publicity reminders, etc., in order to give a given product some attention.

    The decline of RG sales might be worrisome enough, but Tauscher's feeling no need to posit an explanation---and our inferred conclusion of possible incompetence in dealing with distributors (which, of course, I would hope is a completely erroneous conclusion!), and the lack of mention of any talks engaged in whatsoever with potentials partners, investors, etc---is frightening.

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    • Mr. Tauscher concluded, "We have been working diligently to improve our financial situation, starting with the recently-announced pending sale of our TMR assets for $1 million in cash, and recent progress in our efforts to secure additional financing for our RenalGuard program. We were also very pleased to learn recently that our RenalGuard System™ was awarded a $244,000 grant under the IRS Qualifying Therapeutic Discovery Project (QTDP). These QTDP funds will support our ongoing development of RenalGuard and comes at a critical time for our company."

      Participant- what do you make of the part where Tauscher states they have seen recent progress in their efforts to secure financing for RG. Do you think they have someone ready to loan them money or partner with them?
      I ,like you are also worried about the sales of RG this last qtr.We are all proud owners of a company that will have $68,000.00 in sales in the next 4 qtrs. based on third quarter RG sales. Not enough to keep the lights on and cash will be flowing out the door to keep us a float. I have held long on this stock for years but fear the end is near. Perhaps 12 months if we are lucky. Lets hope the half of sentence statement about the progress towards financing comes soon!

      • 1 Reply to itsjustagame4
      • Well, Itsjusta, that statement surely is better than no comment at all about the status of things. But, 1) "progress" is a vague enough term that it could shade virtually no movement in a favorable direction, and 2) it isn't even progress in "finding a partner" or an investor, so could always mean that the company, after finding no other alternative, is closer to offering 100M shares at .04---that'd hopefully get the company $4M, but it sure would dilute our holdings to a drop of water. Not the kind of "progress" we're looking for.
        I'd love to think that his comment represents a significant step to a salutary arrangement wherein we and the company would benefit meaningfully. But, with each month's passing over the last 2 years--especially the last year--I've grown pesimistic indeed.

    • Ok, well it still leaves PLC as my star example of why corporate management should never say in public what somebody else is going to do. And that means "no news is..." well, no news.

    • That was probably Dow. They already had FDA approval when Tauscher came on board to replace Dow (who then went on to drive another promising company into BK).

    • It's poison to talk about negotiations in progress. And our dear chairman has a history of having a big mouth, so the less I hear from him the better. The fact that 2 businesses have been sold shows that at least the investment bankers have been doing SOMETHING.