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  "documentTitle": "PROCEPT BioRobotics Corporation (PRCT)",
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  "notes": "Uses a series of pull-quotes from former employees and a urologist to build a case of potential revenue manipulation.",
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      "kind": "callout",
      "text": "So, what's driving the massive increase in DSOs? 70% of systems are being placed at large hospitals, and we doubt that the Company's lower volume hospital customers electing to purchase a relatively expensive single-indication system are so troubled as to be delaying invoice payments.",
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      "text": "So, what’s driving the massive increase in DSOs? 70% of systems are being placed at large hospitals, and we doubt that the Company’s lower volume hospital customers electing to purchase a relatively expensive single-indication system are so troubled as to be delaying invoice payments.",
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      "text": "The fact that many AquaBeam systems have been financed would suggest that Procept receives those payments in a timely manner from the third-party lender. In addition, based on our conversations with both urologists and former Procept sales reps, we believe it is common practice for hospitals to stock (and thus order) at most a month or two of handpiece units, which makes the rising DSO trend difficult to explain, as it would seem to suggest a significant change in the size of hospital handpiece orders.",
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      "kind": "quote",
      "text": "my schedule is so set that we now have, I think, seven or eight on the shelf, and they just replace them pretty much every 10 days.",
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      "kind": "quote",
      "text": "...hospitals purchase [handpieces] upfront, and they do keep some inventory. Now the problem is, they don't keep too much inventory because there is a storage issue always with hospitals...",
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      "text": "I think our customers typically will only hold anywhere from one to three months inventory on the shelf...and honestly I think it's shifting closer to the one month.",
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      "text": "I also would say that 90% of all those hospitals are financing the Aquablation system because that's also one way for Procept to keep that sale off their books because it looks like they sold the system, but it actually just goes to the third-party financing team.",
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      "text": "I also would say that 90% of all those hospitals are financing the Aquablation system because that's also one way for Procept to keep that sale off their books because it looks like they sold the system, but it actually just goes to the third-party financing team. — Former Procept Sales Rep, Nov 2024",
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      "text": "Source: Spruce Point research",
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      "text": "The DSO Trend Is Made More Curious By System Financing Trends And Low Hospital Inventories",
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