Getting Any Better

[anonymous]

Again..Gordon Gecko, read the actual press release. This is simply a registration in case the company needs to raise money. A precautionary, smart move that was discussed on the earnings call. Company is forecasting $43-45 million in cash plus another $15 in credit line at the END of 2016. This funds the company through 2017 & into 2018. The shelf registration is a filing that allows them to sell shares IF they want/need to raise more money. See below for further explanation.

Shelf registration is a procedure, included in a regulation, that a corporation can evoke to comply with U.S. Securities and Exchange Commission (SEC) registration requirements for a new stock offering up to two years before doing the actual public offering.

Wow. If you spent half the time trying to sell Fuse as you do defending the company they would not have to close up shop for an extra week or so.

 

[anonymous]

You're going to mention Lumos? Do you work here? If you've ever worked here, you would know that all Lumos is, is a fix to our otherwise less than stellar image that we have with our system. My guess is that the image issues are either due to the fact that we don't have an HD image from the Fusebox to the Fusepanel or it is the multiple connections from the Fusebox to the curved?

Plus, the one thing that anyone knows(if you work here), is that the driveability of our scope SUCKS. Then, let's sell a coat hanger wire that we can shove down the working channel instead of working on variable stiffness. Unless GEN3 fixes it considerably, the "enhanced" image won't do that much..

Don't get me started on the earnings report that mentioned that we've cut back on our R&D to cut operating expenses. Unless we get a full line of scopes soon, we aren't going to consistently score multiple room deals in medium to large hospitals.

Are you referring to the sentence that states "
The decrease was driven by lower general and administrative and research and development expenses"? That tells you the company cut back on R&D? That could mean they got a new phone provider in Israel and now the phone bill is less. There was nothing about cutting back on R&D.

I haven't lost on image quality since Gen 1. Do you work here? If you do work here then you should have already demo'ed with Gen 3 and know it drives better.

 

[anonymous]

You're going to mention Lumos? Do you work here? If you've ever worked here, you would know that all Lumos is, is a fix to our otherwise less than stellar image that we have with our system. My guess is that the image issues are either due to the fact that we don't have an HD image from the Fusebox to the Fusepanel or it is the multiple connections from the Fusebox to the curved?

Plus, the one thing that anyone knows(if you work here), is that the driveability of our scope SUCKS. Then, let's sell a coat hanger wire that we can shove down the working channel instead of working on variable stiffness. Unless GEN3 fixes it considerably, the "enhanced" image won't do that much..

Don't get me started on the earnings report that mentioned that we've cut back on our R&D to cut operating expenses. Unless we get a full line of scopes soon, we aren't going to consistently score multiple room deals in medium to large hospitals.

Please stop talking about something you know nothing about. For you to say the image isn't HD and sucks might be the dumbest thing I've read on this shitty site. You honestly can't be serious! Physicians are constantly saying the image is one of the best they have seen.

If you don't like working here, leave. I don't get the reasoning behind bitching about something and doing nothing about it. Find something that makes you happy or something you can actually sell. You won't be missed.

 

[anonymous]

Please stop talking about something you know nothing about. For you to say the image isn't HD and sucks might be the dumbest thing I've read on this shitty site. You honestly can't be serious! Physicians are constantly saying the image is one of the best they have seen.

If you don't like working here, leave. I don't get the reasoning behind bitching about something and doing nothing about it. Find something that makes you happy or something you can actually sell. You won't be missed.

AMEN!!

 

[anonymous]

For all you CP Gordon Geckos, let's keep things in perspective.

Based on today's call, the company missed domestic sales by a system or two. Cash burn is at expected/forecasted levels. EC will have $43-$45 million at the end of 2016 with another $15 million credit line. Gen 3 delayed a few deals so they would have hit their number but a few customers asked to re-demo with the new stuff. Other areas of the business are heathy and growing. Profitability has always been forecasted to be 2-3 years away and based on current sales & cash burn is still on track. Lumos was an unexpected early approval as were these air water valves. Several Hedge funds recently increased their holdings. All true, all easily verified facts.

If you are trying to prove your point by positioning a $15 million credit line that is a problem.

EC average negative $15million/quarter for 2015. 2016 the average is negative $20 million. If you keep averaging ($15 million) the company might make it January 2018, but I doubt it. The math doesn't add up unless you come into 2018 with almost no cash moving forward. The company will be sold before that. The rest of 2016 and 2017 will be full of buyout rumors and layoffs, as the company tries to position itself for a buyer.

The #1 problem at EndoChoice was/is stability. Gen 1 and early Gen 2 were both very unstable. The sales force outside the east coast changes constantly. By the time a doctor gets to where he/she is ready to buy then they could have had 2 or 3 reps. Compared to Olympus, same reps for 10+ years and a stable product. Nothing showed a stable company. Docs were to scared to switch.

Olympus doesn't have EC bet on product (since late Gen 2) they have EC beat on stability. FUSE is a great move in technology for GI. I saw it personally save lives while I was there (when it was running). Unfortunately, with current management, customer sediment, and current cash flow. Time to roll the credits. This ship can't be turned around that fast.

 

[anonymous]

If you are trying to prove your point by positioning a $15 million credit line that is a problem.

EC average negative $15million/quarter for 2015. 2016 the average is negative $20 million. If you keep averaging ($15 million) the company might make it January 2018, but I doubt it. The math doesn't add up unless you come into 2018 with almost no cash moving forward. The company will be sold before that. The rest of 2016 and 2017 will be full of buyout rumors and layoffs, as the company tries to position itself for a buyer.

The #1 problem at EndoChoice was/is stability. Gen 1 and early Gen 2 were both very unstable. The sales force outside the east coast changes constantly. By the time a doctor gets to where he/she is ready to buy then they could have had 2 or 3 reps. Compared to Olympus, same reps for 10+ years and a stable product. Nothing showed a stable company. Docs were to scared to switch.

Olympus doesn't have EC bet on product (since late Gen 2) they have EC beat on stability. FUSE is a great move in technology for GI. I saw it personally save lives while I was there (when it was running). Unfortunately, with current management, customer sediment, and current cash flow. Time to roll the credits. This ship can't be turned around that fast.

The above is spot on. There is no way EC ends the year with 45 million in short term assets. They will only have 41 million by the end of October unless they use the 15 million credit line. There is still another quarter to burn through another 15 million after that. So at best by 2017 they will have 41 million, not 45 million & 15 million of debt to service which will add to expenses/cash flow issues in future quarters. Expenses will not go down from where they are now (More reps than ever & what can they cut?) and on the call they forecast lower sales through the end of the year. The company will be lucky to be around in a year. At the current rate, it will be over in May or June of 2017. The stock rose on no volume. Heavy trading today @ 529k shares. I guess the up side is there must have been a lot of buying in order for the stock not to hit new lows. But the buying won't last because it makes no sense. You can buy it way cheaper in the future when everyone else realizes that it isn't going to make it. Buying stock does not improve the cash position of the company either. The scope may be great and all, but soon you will run into the problem of doctors saying what if I buy a system and in 6 months I can't get it repaired/supported? Then you will start to see a sharp decline in sales and the company will implode even faster than May/June 2017. The problem with finding a buyer for the scope is going to be distribution. It would have to be bought by someone who is very well funded. Someone who could wait for the technology to catch on. If FUSE does make it some day, it will not be with EC. Olympus might buy the product for next to nothing only to keep it off the market. I don't see them wanting to move away from fiber optics anytime soon, but they might. Same with Fuji and Pentax. The price any of these companies would pay for the scope would not keep EC out of bankruptcy anyway. This stuff about people holding off to re-demo is bullshit. Based off of what MG said on the call, basically the people wanting to re-demo were only places where they didn't already win the deal. Paraphrasing about what happens at a 9 man group
"3 of the doctors are excited about the product and want to demo, 3 don't really care & 3 are loyal to Olympus. After the demo 6 really want FUSE. Then they announce Gen3 @ DDW & they want to re-demo the scope"
He positioned it like it was a good thing because this means the practice is really interested in FUSE. If they were sold on FUSE, why in the hell wouldn't they just go ahead and order the Gen 3? They are acting like they can't sell the Gen3 unless the demo the whole place again? That is because those deals were never going to close in the first place and Gen3 may save the deal if it drives more like an Olympus scope for those 3 loyal Olympus docs. But it didn't adversely affect anything in Q2. They are still selling scopes at about the same pace & want to make excuses as for why they aren't growing sales of systems. The truth is that it is going to take a lot longer than they thought. Problem is, they don't have the time to ride it out. They are fucked.

 

[anonymous]

Please stop talking about something you know nothing about. For you to say the image isn't HD and sucks might be the dumbest thing I've read on this shitty site. You honestly can't be serious! Physicians are constantly saying the image is one of the best they have seen.

*Sigh*. What port do we use to connect the FuseBox to the FusePanel? Is it an HDMI port or an S video/pin connector port on the back of the FuseBox? It is an S video port. We then take that cable and run it into a USB adapter and connect it into the FusePanel. Along any of those connections, is there an HDMI connection or adapter? Absolutely not. Does the FusePanel have an HD image? NO. Why does that matter? Because we use the FusePanel to print our images. Are the images poor quality when printing directly from a printer off the cart? Yes.

Dumbest thing you've ever read? Obviously this concept of needing an HDMI connection to create an HD image is foreign to you.

 

[anonymous]

Please stop talking about something you know nothing about. For you to say the image isn't HD and sucks might be the dumbest thing I've read on this shitty site. You honestly can't be serious! Physicians are constantly saying the image is one of the best they have seen.

If you don't like working here, leave. I don't get the reasoning behind bitching about something and doing nothing about it. Find something that makes you happy or something you can actually sell. You won't be missed.

What port do we use to connect the FuseBox to the FusePanel? Is it an HDMI port or an S video/pin connector port on the back of the FuseBox? It is an S video port. We then take that cable and run it into a USB adapter and connect it into the FusePanel. Along any of those connections, is there an HDMI connection or adapter? Absolutely not. Does the FusePanel have an HD image? NO. Why does that matter? Because we use the FusePanel to print our images. Are the images poor quality when printing directly from a printer off the cart? Yes.

Dumbest thing you've ever read? Obviously this concept of needing an HDMI connection to create an HD image is foreign to you.

 

[anonymous]

What port do we use to connect the FuseBox to the FusePanel? Is it an HDMI port or an S video/pin connector port on the back of the FuseBox? It is an S video port. We then take that cable and run it into a USB adapter and connect it into the FusePanel. Along any of those connections, is there an HDMI connection or adapter? Absolutely not. Does the FusePanel have an HD image? NO. Why does that matter? Because we use the FusePanel to print our images. Are the images poor quality when printing directly from a printer off the cart? Yes.

Dumbest thing you've ever read? Obviously this concept of needing an HDMI connection to create an HD image is foreign to you.

The fact you are so fucking unhappy here and continue to bitch about something you have control over. Seriously...leave the company. What satisfaction do you get about bitching about a company that PAYS you to sell something. They didn't hold a gun to your head to accept the job. You knew what you were getting into and you knew it would be a tough job. Like I said, if you are so unhappy leave or at least nut up and deal with the job you voluntarily took. You sound like a little bitch.

 

[anonymous]

The fact you are so fucking unhappy here and continue to bitch about something you have control over. Seriously...leave the company. What satisfaction do you get about bitching about a company that PAYS you to sell something. They didn't hold a gun to your head to accept the job. You knew what you were getting into and you knew it would be a tough job. Like I said, if you are so unhappy leave or at least nut up and deal with the job you voluntarily took. You sound like a little bitch.

And YOU sound like a bully. I'm willing to bet you wouldn't say that to my face. The sad part is everyone's an anonymous tough guy behind the screen. I'm going to stay here and get paid money until it dries up or the VC's take it away. You're correct on one thing; the company pays me to sell. The issue is what I'm tasked to sell was purchased after I was hired and that item doesn't work.

 

[anonymous]

And YOU sound like a bully. I'm willing to bet you wouldn't say that to my face. The sad part is everyone's an anonymous tough guy behind the screen. I'm going to stay here and get paid money until it dries up or the VC's take it away. You're correct on one thing; the company pays me to sell. The issue is what I'm tasked to sell was purchased after I was hired and that item doesn't work.

I'm not a bully but I'm tired of the constant bitching and moaning about EC. It doesn't matter when Fuse was bought. You get paid to sell it. Yes, there have been issues with it and yes, they are being cleared up. You can't honestly sit there and tell me it doesn't work. You are what's wrong with the company. Instead of finding something that makes you happy, you will continue to stay here and bitch about a product you obviously can't sell. How does this make any sense?

 

[anonymous]

I'm not a bully but I'm tired of the constant bitching and moaning about EC. It doesn't matter when Fuse was bought. You get paid to sell it. Yes, there have been issues with it and yes, they are being cleared up. You can't honestly sit there and tell me it doesn't work. You are what's wrong with the company. Instead of finding something that makes you happy, you will continue to stay here and bitch about a product you obviously can't sell. How does this make any sense?

I'm happy. I'm getting paid by EC for my job search. I haven't done a real demo in months. I've sold Fuse and I'm just tired of my customers complaining about the damn thing breaking and I feel bad for them buying a total lemon. If you want to go out there and continue to sell a product that we all know has some serious issues, that tells me more about your character. Maybe you are what's wrong with the company? You're selling a product that we know the customer will dislike after it's installed but you still put on a smiling face and tell the customer that our durability is just as good as our competitors.

So, I'm going to continue to interview and let GC continue to send me checks while I job hunt. I've already hit my Fuse quota. I don't give a sh!t.

 

[anonymous]

I'm happy. I'm getting paid by EC for my job search. I haven't done a real demo in months. I've sold Fuse and I'm just tired of my customers complaining about the damn thing breaking and I feel bad for them buying a total lemon. If you want to go out there and continue to sell a product that we all know has some serious issues, that tells me more about your character. Maybe you are what's wrong with the company? You're selling a product that we know the customer will dislike after it's installed but you still put on a smiling face and tell the customer that our durability is just as good as our competitors.

So, I'm going to continue to interview and let GC continue to send me checks while I job hunt. I've already hit my Fuse quota. I don't give a sh!t.

What's a tool bag. You are such a rebel

 

[anonymous]

What's a tool bag. You are such a rebel

The guy above can't spell. He was calling you a tool bag and I agree.

 

[anonymous]

I'm happy. I'm getting paid by EC for my job search. I haven't done a real demo in months. I've sold Fuse and I'm just tired of my customers complaining about the damn thing breaking and I feel bad for them buying a total lemon. If you want to go out there and continue to sell a product that we all know has some serious issues, that tells me more about your character. Maybe you are what's wrong with the company? You're selling a product that we know the customer will dislike after it's installed but you still put on a smiling face and tell the customer that our durability is just as good as our competitors.

So, I'm going to continue to interview and let GC continue to send me checks while I job hunt. I've already hit my Fuse quota. I don't give a sh!t.

Yikes. You do realize there are only a few people that have hit their Fuse quota already right? And then I am sure there aren't many who were here before Fuse was purchased by EndoChoice....you aren't too smart. Do you realize how easy it would be to determine who you were if you weren't totally full of shit?

Please do the company a favor and move on ASAP. Seriously.

 

[anonymous]

Yikes. You do realize there are only a few people that have hit their Fuse quota already right? And then I am sure there aren't many who were here before Fuse was purchased by EndoChoice....you aren't too smart. Do you realize how easy it would be to determine who you were if you weren't totally full of shit?

Please do the company a favor and move on ASAP. Seriously.

Regardless, it doesn't matter. I'm actively looking to move on. Thank you. If you want to try to determine who I am by looking at the sales rankings, that's cool.

 

[anonymous]

Regardless, it doesn't matter. I'm actively looking to move on. Thank you. If you want to try to determine who I am by looking at the sales rankings, that's cool.

You really are douche bag. I wish I knew who you were. You parents must be proud of the prick they raised.

 

[anonymous]

If you are trying to prove your point by positioning a $15 million credit line that is a problem.

EC average negative $15million/quarter for 2015. 2016 the average is negative $20 million. If you keep averaging ($15 million) the company might make it January 2018, but I doubt it. The math doesn't add up unless you come into 2018 with almost no cash moving forward. The company will be sold before that. The rest of 2016 and 2017 will be full of buyout rumors and layoffs, as the company tries to position itself for a buyer.

The #1 problem at EndoChoice was/is stability. Gen 1 and early Gen 2 were both very unstable. The sales force outside the east coast changes constantly. By the time a doctor gets to where he/she is ready to buy then they could have had 2 or 3 reps. Compared to Olympus, same reps for 10+ years and a stable product. Nothing showed a stable company. Docs were to scared to switch.

Olympus doesn't have EC bet on product (since late Gen 2) they have EC beat on stability. FUSE is a great move in technology for GI. I saw it personally save lives while I was there (when it was running). Unfortunately, with current management, customer sediment, and current cash flow. Time to roll the credits. This ship can't be turned around that fast.

The math doesn't add up? You math actually doesn't add up. Let's all learn some accounting:

EBITDA margin can provide an investor, business owner or financial professional with a clear view of a company's operating profitability and cash flow

That's more or less the cash burn and really adjusted EBITDA is probably closer to the cash burn. $10.7 million in Q2. $56 million in cash minus $11million in Q3 & $11million in Q4= $36 million in cash. $43-$45 million in cash at the end of 2016 must assume lower expenses in Q3 &Q4 or higher sales or a combo.

Let's say they are wrong and they end up with $36 million at the end of 2016. $36 million takes them to Q417 if sales don't improve or expenses don't go down. They filed the shelf to do a 2nd offering plus have a $15million credit line in case that happens.

If sales grow from $19 million to $30 Million a quarter that gets them to profitability at the same expenses. That seems like a lot, and it is, but that's approximately an extra 55 systems in 2017. U.S. sales goes from 15 a quarter to 30 a quarter and they are cash flow positive. That math isn't that unrealistic. That also assumes path & other products are flat, which they are not currently flat. It will be a tough road but if Gen 3 works and they can sell more each quarter they might make it.

Read more: EBITDA Margin Definition | Investopedia http://www.investopedia.com/terms/e/ebitda-margin.asp#ixzz4GTep8Q1j
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[anonymous]

Anyone for one second ever considered the fact that the REAL problem with EndoChoice isn't Fuse?

 

[anonymous]

You really are douche bag. I wish I knew who you were. You parents must be proud of the prick they raised.

Why am I a prick? You're taking this way too personally. People here get fired all the time for poor performance by the ADs or GC. I'm actively looking to leave. I'm not going to quit without something lined up. That's crazy. It's business. I don't have any loyalty to EndoChoice. I don't buy into the "Chie" mantra. It's a job. Nothing else.

You wish you know who I was? Why? What exactly would you do? I'm so scared.