Though struggling medical device maker Guided Therapeutics Inc. has a new contract expected to improve financial performance, the company still needs to raise more money or it could be in trouble. 

The Norcross, Georgia-based company makes the LuVira Advanced Cervical Scan device, which is used for early detection of cervical cancer. The product uses light to detect changes to cells. 

"If sufficient capital cannot be raised by the end of fourth quarter of 2015, the company has plans to curtail operations by reducing discretionary spending and staffing levels, and attempting to operate by only pursuing activities for which it has external financial support," Guided Therapeutics says in its quarterly filing from Nov. 12.

Those issues raise substantial doubt about the company's ability to continue as a going concern, or without the threat of liquidation. The business has previously raised money through private placements.

Guided Therapeutics reported $94,000 in revenue for the quarter ended Sept. 30, considerably lower than the $262,000 that it reported in that quarter for 2014. The decline was because of fewer shipments, according to the company. As of Sept. 30, Guided Therapeutics had negative working capital of about $2.7 million, and a stockholders' deficit of $3.5 million, partially due to recurring losses.

Guided Therapeutics recently signed a four-year deal with the Turkish Ministry of Health that should bring in around $14 million, the business says in a filing with the U.S. Securities and Exchange Commission.

"With the contracted revenue from the 2016 Turkish Ministry order alone expected to be about $4.4 million, about four times larger than revenue for all of 2015, we continue to work toward our goal of cash flow breakeven and generating cash from operations to reinvest in our future," said Gene Cartwright, Guided Therapeutics CEO.

LuVira is not approved in the U.S., and the business has a meeting with the U.S. Food and Drug Administration on Nov. 30 to discuss specifics related to patient data, SEC filings show.

For the previous edition of Turnaround Tuesday, see Verso Paper Warns of Potential Bankruptcy, Hires Restructuring Advisors. For a list of other struggling businesses, see Mergers & Acquisitions' Distressed Company Watch List. 

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