Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Strategies & Market Trends : Value Investing -- Ignore unavailable to you. Want to Upgrade?

To: Harshu Vyas who wrote (74964)	1/28/2024 1:48:29 PM
From: Sean Collett	Read Replies (1) \| Respond to of 78510

I have been doing a deeper dive into CUTR and this seems way more high risk than I think you are expecting. They state in their last 10-Q that a large portion of their revenue comes from a deal they have done with ZO Skin Health which allows them to sell those products in Japan. They mentioned there were certain economic requirements that were not met in 2022 and ZO indicated they intend to not extend the distribution rights which expire in June 2024. Cutera expects this to have adverse effects on future revenue & cash flows + stock price beginning in July 2024. This deal for ZO gave them a big boost in revenue when it started in 2021 and from what I can tell this should greatly impact them once expired. Japan is around 15% of their revenue. And while the future for them could be in AviClear their revenue from it last quarter was only 6.5% of total revenue. -Sean