EKSO - Earnings call transcript Q4 2017 | Ekso Bionics Holdings, Inc.

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Operator

Greetings and welcome to the Ekso Bionics’ Fourth Quarter and Full Year 2017 Financial Results Conference Call. [Operator Instructions] As a reminder, this conference is being recorded.

For opening remarks, I will now turn the call over to David Carey of Lazar Partners. Thank you, David, you may begin.

David Carey

Thank you, Devin and thank you all for participating in today’s call.

Bionics Max Peurach, Scheder-Bieschin, Ekso Executive and from and Officer Chief me are President Jack Chief Joining Financial Officer. Bionics ended Ekso and today, released for results Earlier the XX months December XXXX. XX, financial quarter the of company’s copy available in press A the website. is release

or I of begin, remind to Securities which and to including statements constitute made federal management’s statements. not statements are or securities forward-looking without or like will reliance operational implied forward-looking All statements the you that by could assumptions. pursuant operating provisions various Private from should this examination laws statements Litigation are forward-looking limitation materially call call would of include undue trends management of Accordingly, of Safe results actual within make anticipated XXXX. we based that statements may in events Before contained facts and these that current during that Act uncertainties the historical to on you the risks place Harbor upon forward-looking differ statements. not meaning involve future cause are material Reform estimates historical statements. statements, of expectations These are financial and Any these our those this

the Ekso March of For over of information today, update XX, is Commission. to please disclaims otherwise. conference time-sensitive This whether associated broadcast of any law projections and now I Max. any see except or a will list to or required or other as only call Securities forward-looking the revise new business, by Exchange turn and XXXX. intention information, uncertainties events with because financial our call future the our statements, descriptions accurate risks contains and the and filings as or with obligation

Max Scheder-Bieschin

moment President CEO Monday, for we Bionics. thanks of been everyone appointed Peurach, introduce to would I like in and and take has David as announced you, Thank on call. to today’s a Jack participating to who Ekso

Co-Founder CEO. over development a in back the innovator has and the and with industry. several the Jack of the taking the power of him relationship excited leadership I position X board Ekso have stages advisor SunPower, a CEO a early of became Bionics, of Ekso and to Prior positions helm solar to past first a in will the and held Jack. an are of early at to force leading that With the we executive Jack an call committed the turn As that, member years, bionics, long through Ekso’s company for

Jack Peurach

you lead care Ekso toward growth rehabilitation gained commercial with and to call. for GT Bionics, our Max market, will establishing of in thanks made exciting future to opportunity. the the success. the for Thanks, all of participating traction Ekso standard stroke opportunity have progress and cord pleased again we time spinal a patients to of footprint such rehabilitation at serve for significant of today’s I a as foundation In XXXX, especially in increased as injuries once and am that and

our in product industrial new a segment. launched also We

initiative already to quarter In the operating million addition, operations our has cost the significantly $X.X our a we in enhanced in second $X.X from reduction through fourth structure million reduced loss from cash quarter. that

which XX GT the GT optimistic bringing by systems, a a of in shipped including the to we quarter QX. results to XX of XX% XXXX. review the momentum XX I which were GT made that we to rehabilitation shipped total alone, of sign be down and carry-forward systems, market believe the fourth quarters rehabilitation Ekso increase systems XX placed, achieved will XX we changes which like into we these intend ahead. execution Ekso in field the year, that the In XXX, rentals. to market. believe QX. that shipped sales year-over-year the shipped would I units In drive of the success we early Broken units were our strategy First, to highlight recent our in Ekso for XXXX, progress XX we the shipping We in the in continue of in shipped we Ekso in uptake we to systems XX the U.S., In am GT geography, EIMEA, further in

GT care seeing in approved units, feedback market. expanded We being for this centers GT Importantly, also in leading the Excellence Ekso GT our expand tell become WISE progress number Care they significant they of us as has validation multi-center GT’s standard establishing further earlier innovation consistent therapy that with units from integral cord patients multiple purchasing Cord rehabilitation from in stroke a GT increase for the indications. Ekso a rehabilitation and we for UK Spinal the programs. rehabilitation Ekso components XX the from briefing spinal of year of care which Ekso Also value study potential XXXX of was and support population of longer customers the increasing achieving on rehabilitation. diverse of of representative Institute MedTech National spinal to Ekso important an as are was who facilities are its as and their our standard Pan-Europe is study term are provided injury utilization to which GT of Ekso GT in in and believe in that injury Of data cord their Health Ekso of a published the year goal

systems. improves and believe and of suggests the cord physical benefit sizes the using the We a observed allow with are device distance surrounding patient our now Ekso of significant for Ekso sessions GT outside majority clinical patients. and high GT seeing spinal stroke high walking satisfaction Ekso during training satisfaction us Ekso GT Highlights incomplete gait injury therapists evidence expressed start enough of to and sample include GT valid we scientific data sufficient plans making that

injury electrical HASOMED electrical stimulation In low are announced who body believe partnership to which our pulses highlights or technique an to across EMEA available partnership exoskeleton been system. the artificially in the people generate incorporate throughout a of more with larger energy in investment launch the a range functional for into results allowing number FES to we FES enables us EMEA. paralyzed in Ekso device to website. their GT a GT Additional have exoskeleton interface FES This on of a people that the rehabilitation Ekso patients. due nervous central centers to December we movements uses is broader capability to amortize versatile for

with we attributable to like customers XXXX, XXX turn arms shipments is to validating the shipped and total segment. would them to freedom adoption. prior Industrial I lumpy elevates that conditions efficacy, several that, products most to Overall in we broader assist is that fact low supports our in units. to of tasks. said industrial to Now we which comfortable lightweight accomplishments XXX We to motion. and wear launched bringing are achieved Having exoskeleton close economics it enabling and profile while workers providing It traction safety EksoVest the are overhead remains believe all to and making

plants. Asia Ford pilot Pacific. VP In the the Chwee Christian Importantly, Motor America and to Babini Company their in UAW VP the of additions through two Vest Sales we Foon team our Lim of and of as of as executive of XXXX with we enhanced North partnered

my led company Tom. point We of the commercialization in would Each on our XXX believes mission the Thank realize from individuals these and their also the thank importance Howard Wang we of the FDA Bionics Li we appreciate He it when our to lastly our Directors. cause. efforts. More to ability And Board welcome over recently in to for of opportunity and to further Wendell Max. members. call for time predecessor to of will to a progress welcome and the talented Ted clearance the hit take the to to Board I Amy field. enthusiasm and units you, Charles will At close has Tom tremendous also Ekso dedication in work I time Looby, Palefsky and turn their he expertise, Board. our thank Dr. Board, the hard would like we this as our behalf I to like to made to

Max Scheder-Bieschin

Total fourth ended quarter December in XXXX. $X.X revenue device medical Jack. $XXX,XXX was breaks sales. million the reported This $X to million in and revenue revenue, industrial $XXX,XXX down in for XX, Thanks GT Ekso

quarter fourth medical XXXX the had quarter began. efforts we have Our device best commercial revenue since is our

adoption. in $XXX,XXX drive potential similar programs is In to with at units for the of compared $X the rental customers, quarter Gross fourth represent quarter level a profit a addition, end for The helping our backlog. the to in the million close XX rental continue to XXXX. XXXX resonate was to which field

in in compared the December diluted GT primarily activities fourth quarter XX, the Ekso $X.XX per XX, industrial Research share XXXX. share for to Net for compared primarily our General study quarter margins compared decrease expenses gross $X.X diluted $X.X development and expenses XXXX, $X common applications, for XXXX. were or million basic as quarter China. along marketing million Sales in compared reductions, for million the research workforce ended cost $X service XXXX. applicable increase and to with continued continued $X.X to increase of associated medical activities three the basic of for increase was result was $X.X expenses quarter per our for months scaled. XXXX. months administrative clinical improve. and three an the million business our due for an a stockholders to $X.XX a due for reduction and and $X.X with both million the million As to development $XXX,XXX the million in the loss in of in WISE December to May or activity million ended fourth quarter fourth was marketing-related to due the were quarter were systems to This of XXXX This to $X.X for related and

results, Please made service for goods Gross year please of compared full in revenue of year prior recognition. in profit margins of change million was to our $XX.X to recognition was GT to we cost systems. note year. in was XXXX prior result $X.X includes of a as deferred the Ekso the improve the Again, in cost revenues one-time year. $X in to million million areas revenue $X.X previously compared note the reduction one-time the approximately Turning XXXX approximately a gross of $X.X XXXX million and million for of for $X.X million continued revenue. progress Gross profit

$XX.X quarter $X.X $X.X XXXX at to XX% margins $X.XX million our same prior to were financed cash million. the to improved million of XX, expenses $XX.X to was million full the details year, and $XX an and XXXX. year, expenses ended XX compared share in ended at the $X.XX million see $XX.X year, year for General decrease of third back full the The and $XX.X or were $XX.X approximately filed compared result XXXX. quarter $X.X million full turn $XXX,XXX. XXXX full a $XX.X the of $X.XX million fully I in compared and million the in or in and common hand for increase the gross share the XXXX to the to applicable for XX%, year Research on Here administrative is the basic period Sales hand up Please $XXX,XXX. of XXXX. diluted to from the million development XX, ended rights XX, XXXX. prior year share the will an to Cash for for million $XX.X were close and the for million earlier primarily December months year compared of compared was to Net December marketing year Jack. per now XX, XXXX. expenses on previous per basic year today for December loss increase diluted call increase for XX, a December December the further regarding XX-K per offering completed for in stockholders full

Jack Peurach

Max. Thanks

enable around rehabilitation business. better we have venture As include intend to objectives. we to to to our including These on invigorating potential us strategies in team the the initiatives, build market quarters joint refine our financial several our key created urgency and performance, China improving I a over and achieve sense momentum in with the past of move increasing strategic industrial to work leadership our forward, several our

am of capacity product innovative We I company Bionics our to now expertise we the questions. is also and am us on transform reality the a the team, making leverage intend opportunity. proud to improve catalyze technical to of what lives in CEO a was to Ekso’s which I everyone a and positioned our the be Ekso opportunities mobility patients line to workers. is which have committed to the help that of share impactful exoskeleton open into products achieve I human technology and founded to Operator, may vision confident sizable and you for compelling believe

Operator

you. Thank

We your will from Our now question. Instructions] first be conducting with [Operator question a with of the Bruce session. question-and-answer proceed line SunTrust. Please Nudell comes

Stan Fediuk

Hi vision outlook Bruce. Thank on emphasis placed for going line I the or for details on you there Jack, forward, the just be for this taking is actually about for XXXX? first Fediuk industrial one question. Stan provide and my be will home your company will the strategic for your more guess can mobility more

Jack Peurach

Thanks Sure. Stan.

build and a going momentum. to of segment we tremendous first that the on strategy in on rehabilitation for So are have company, we continue the momentum on that to amount forward-looking the

some We the building to business. industrial into are also insert energy going

what think has improve I taking business the are really what efficiency, hope that with business, but really we rehabilitation that at that we is and the additional the on customers, been great So some the done industrial question our our doing continue to business I also have businesses focusing operations around industrial. traction answers our in Stan. expand scalability improve into of improve which

Stan Fediuk

be there strategy? in marketing Will Thanks. any Yes. rehabilitation changes

Jack Peurach

time. this no No, at

Stan Fediuk

Okay. how have reps currently U.S.? And sales do you in many

Jack Peurach

currently I States. in answers here, to reps am match six some United looking sales for we the have

Stan Fediuk

And OUS?

Jack Peurach

I U.S.? am me pardon the outside sorry, of

Stan Fediuk

Yes, outside the U.S.?

Max Scheder-Bieschin

direct covering the with recently Chwee and have develop person in third one Foon the us have three we them we started assisting covering one and Stan oriented then in distributors, markets Pacific folks Europe, Yes. Asia Asia who sales to market.

Stan Fediuk

there market, since your initiatives to have China mentioned Just JV a follow-up has changed Asian Pacific the potential? on – in you

Max Scheder-Bieschin

will and one end leader like day in of aging China are fantastic I global some a Asia. we that medicine in there improve be have the that and in a at wants the therapy. example to to wave we good rehabilitation that would you will providing robotic in believe haven’t of think of will. where very rehabilitation very the you is there very therapy if therapy And from well go people what to take have country you physical No, initiatives and you we markets demographic the opportunities capable few we as and well go really are selected little manual level tidal will to exoskeleton happen skip you you as of population, and really physical therapy very placed the government advantage

Stan Fediuk

Okay. growth seeing Thank And a there you into can just provide are sequential you. color bit medical were what on units drove in and of increase both you units, industrial what their little to XQ? turning and

Max Scheder-Bieschin

Yes.

what excited was shaking he are in few our so existing we we think trees orders nicely very fourth just the and about the of customers in in saw. the I happy what on America really the There a regular was VP that as sales quarters and that interest is interest the next when drop in our out is quarter with pipeline starting see the think pointed the I joined fourth more he North great to weren’t – drop. us he product having basis. And Christian are very doing and quarter you hopefully that are

our it’s earlier shipping excited we think points, early pipeline that in units visibility better I fairly have data the business. we means but quarter, in are our so We for are small what actually days,

have which because out recently then Vest. in side, X.X are we amounts. came the we over have year, starting get the came to with we most visibility bit little market the we – industrial market Again, better of time ago year amounts the to On we and X the with

internal then sizable Vest done pilot And go so of out, of and into will interested with but of X us you month, and in Jack are as they buy all X, will it the X lumpy. lumpiness I those, as a turn business have pointed I past help better was sure, might that the use out of think will not some them folks plan see that months, very X, of the as in order than a units, we trying X And through as they them some hopefully their but testing throughout take through for go ergonomics product to the months X some then organization. think

Stan Fediuk

Okay, great.

what you the share what you and You number previously disclosed can for was probably quarter into are in seeing this XQ performed demos quarter? the that of

Max Scheder-Bieschin

have rather probably to that. I I Stan, in back me, you get saying will front numbers I than don’t of and to those incorrect, something apologize on have

Stan Fediuk

And the…. fine. That’s update any on

Max Scheder-Bieschin

are it’s gives do we we really centers and us much hospitals. are one And patient in for because or mention I customer that we and high we a is think reminding around it’s local it think customers effective some show the opportunity then we other to distributors the and and good clarify invigorates And you data do of winning that’s that implemented Ekso interest good if to what but their two with individual and patients I we handful well here doing where into and Matthias maybe of will losing it we event individual dozen have the and then here are already benefits hospitals seeing a will to we market dynamics. not in demos, good has or at and what is a they the some why Stan, demos and very invite have of efficient I more in Christian as us and one something going opportunities. growth that utilization and going call that have see local Europe and development are doing who area markets we them the to what

Stan Fediuk

Okay, got it.

just I any any to the Next, WISE updates timing future on releases? upon data enrollment trials investigator-sponsored of and and want touch other study, any

Max Scheder-Bieschin

Yes.

think some enrolled WISE, I we if Ekso. we enrolled. me They are have today, So, targeted Today, X Excuse to centers. are said of originally the that. X the for centers centers I XX obviously all ergonomics, have apologies users

and Our that in the to we and to target today in we the starting is quarter. quarter about fourth see XXX, accelerate XX have grow first continue we enrollment and XXX patients that enrolled

reach implied the rehab – when some think along XXX later. than I think areas far like to the rather of think I Stan, we I world that was advanced enrollment studies. medicine sooner to is not as I question as would with And actually of other see it comes as

this Greg and time, are is So, study now spurring starting other a that four their all took bit share spent or team involved but the lot and his Dylan the so how these that soon. other follow to setup little enrollment time the folks place ones of Edwards in to best educating a the and agreements the protocols and of the now progress and in centers that of are three have to and

Stan Fediuk

provide the for And great. think quarter burn the can year? you where be or you next just cash for Okay, will

Max Scheder-Bieschin

guidance to were second provide million hard We in this on at in the We really don’t in volatility the quarter point. $XX and million close we $X Yes, we bit fourth a worked still were quarter. pipeline. We have under our that. of little

the a find hope a our that So, unit rentals little renting attractive increase have we in placements, an quite has we and of units shifted little us margins. the between metric mix sales bit that important pause We saying to And few for reason is at part but ourselves bit. a obviously internally. our

a working has not but or demand really our those timing issue. that view we a and are as it margins, using to cash We just undercut a capital

it cover and months X device may interim just generally to buy period. tend in ASPs today XX the have month, better able we Someone to less from months, to and now the because they negotiate to and X rent price be that

XXXX, any – did rental returned. units For all had have of we not we

Stan Fediuk

Okay.

EksoVest, question final about you article did For feedback? the was trial an there get line pilot Ford’s with my assembly any

Max Scheder-Bieschin

Yes.

got feedback. lot of have We a

together. UAW well We Ford like they and a as are the I fortunate mean are to then in have it company

to better they other how out automotive At they we some be in have us in ergonomics it from think might to it also tremendous the benefit shoulder spinal and relief same had worked companies I and It’s task reaching activity Vest. did most the decrease success. importantly led they related manufacturers able have to Tech in see studies loading decrease completion. with showed muscle and to shows – time and Virginia they it the time how and to shows

so And plants. with that Ford things Ford they more supporting is the work optimistic doing cautiously that will other be units are more and them we deploy as seeing these through of those

Stan Fediuk

questions. Thank for my Great. you taking

Max Scheder-Bieschin

for the thanks question. Stan,

Jack Peurach

Thank you, Stan.

Operator

I At for back we over closing more no have the remarks. Jack to this questions, time would Peurach turn like to call

Jack Peurach

all steps our for XXXX us our of year XXXX of potential in growth us the financial current our you help efforts and and company Thank joining to to focus on make resources enhance took the a success. The today. maximizing products will

our We engineering improve are mobility to Thank are mission our and using year We excited quarters committed forward to in you. in progress innovative to ahead. capacity look in this the people for around our the with about physical protect world. continued ahead sharing you and the expertise opportunities and

Operator

call. All may disconnect. now This parties concludes today’s

Ekso Bionics (EKSO) 13 Mar 182017 Q4 Earnings call transcript