EKSO - Earnings call transcript Q1 2018 | Ekso Bionics Holdings, Inc.

Due to licensing restrictions, you must log in to view earnings call transcripts.

Operator

Greetings and welcome to the Ekso Bionics' First Quarter 2018 Financial Results Conference Call.

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

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

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

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

Jack Peurach

almost Ekso all team becoming power I've that the two achievements in focus and call. dedication to Thanks, revenue quarter-over-quarter. leadership thanks employees for the of participating am today's by our in in technologies. of potential the of XXXX. you and the pleased CEO and been David inspired we unit of focus the of is our of with Bionics Since and months our rehabilitation realize I innovative our and quarter and to all first adoption United growth of both products EMEA, The in the market year-over-year and States in made the ago, reflected

drive increase rental business. XX units in adoption to quarter. XX prior sold rental our in in $X.X units market. XX quarter we Our as the This compared US in for first of increase the sales in systems XX% over achieved of were is demonstrates fleet. Of our is XXXX. quarter first the same year. period rehabilitation same total XXX% is million a our This in first the of quarter shipment And XXXX over XXXX is revenues the revenue the over million $X the of of time first is the of with systems converted units to helping gaining This the program in EksoGT and traction the by our new shipped to the the that evidenced rental program were first EksoGT, new four quarter, added XX EksoGT

term to leases. rentals We convert to diligent to or our will have sales efforts certainly in be long

sales. rehabilitation XX landscape. we will that to a continue The still make customers in while transforming product in $X.X the the believe that early to to term commitment days, the field I rentals we is program drive However, million have believe represent long a over potential

ongoing including XX demonstrate studies, clinical announced, XX encompassing a there the of the total and utilizing have data we that studies build of potential to been over XX XXXX continue date, patients. transformative We a EksoGT, EksoGT. believe robust body completed of To studies

We are and the of EksoGT, data into of clinical large and working Klinik. including to the provide initiated the leading Moritz who insight Institute independently the use Chicago Rehabilitation trials have the investigators with Kessler Foundation,

addition, injury, evaluate are as running which speeds study, clinical we incomplete the own rehabilitation spinal with increase the patients independent results trial known in is designed trials market improvement We either a the our conventional WISE uptake. control with the with of rate also EksoGT In EksoGT both gait group. to undergoing compared of positive the and believe will these or expand EksoGT therapy in cord

these orders. demand EksoGT of quarter for the first we with to the we As a from await data ended backlog studies, continues grow and

While that time equally strong second are a quarter sales the in achieve we've this XXXX. had the backlog, optimistic we is first we will of

to better the on an have ongoing benefit that throughout objectives to end. than the This on support sales quarter we our efficiencies just and will clarity the efforts shipments backlog will Another operational meet quarter's rather is basis.

much As to I two of my our we proposition. a on future. pleased advance first I organization that that spent that with the the the to in months business performance ensuring sizable value we as have quarter, truly changes am undertake to looking sustainable have are Focused and first our model in enough

regions that several have to the intend moving direction Bionics them with the other and/or move market need to which pleased these now am and segments. for to levers greatest focus our levers have is in and I develop identified our implement we We key in in potential identify that and US we and key to levers advance the market business the go. initiatives in success Ekso direction on

but not essential for progress Our success, product position in leadership establishing in company. market a are a one rehabilitation the we is our

me that join multiple rehabilitation features that in solve the and use to from company this our is in we industrial problems market attracted market. Bionics case technology our the competitors to Ekso distinguishes the industries, and the of medical One

XXXX, new in XXXX of to moment, opportunity I'll also industrial are process Thanks helping technologies of responses to of role positioned moving after leadership well that are the financial expand key pilot years We chapter just an the are on exoskeleton We collaborative solutions positive is call of wide turn new next Workers, by that over traction. mechanical and settings. restore to Bionics. The that customer expertise a moment companies earlier We our agreement and distribution gaining has a Rather, results. we obligations. license have to the in Daydo eight EksoVest EksoVest programs Daydo for This Daydo, the bittersweet applications. we with its play audiences. our health the construction Ford market. outside the Company a market building is and evidenced the home meet EksoVest is and to today we and that solutions important our has innovate focused broader that United with Motor company Tokyo our believe in United preparation to the beginning on announced hosting first not to across partnership significant a is a in gaining ongoing believes residential quarter an among as like robotics industry for Olympics in the home his in applying devices. signed the recognition In believe as States, we protect of mobility review range Japanese the garnering Max the the Auto Max Ekso With is construction life at country

him be Max's July begun and good contributions spends before current working be Max to Country. with for departs. completed success expected staying have home some it he not but throughout consultant a nothing certainly will in their at And wife would probably without We or on best as turn Max will XXXX. that's he with company wish opportunities momentum Big missed. We've most continue time its that, us Montana. and will Max Our be through a Max. I'll the already to with his search off over Sky in

Max Scheder-Bieschin

million of ever especially today. I Thanks, one you was the with away reported very note the the industrial My words. difficult Europe I've real markets. Jack have rehabilitation are in sales. that Ekso we time revenue for North pleased to to again for $X results to Total America as those and first for our getting quarter $XXX,XXX XXXX. at financial decision industrial revenue million exceeded growth. from down opportunity to $X.X related review breaks and am was March the contributing is and step to we first most like believe more both made, rehabilitation I choices and with our the traction We'd kind in million in least ended XX, both this $X.X to the This one EksoGT business,

that help adoption. accelerate addition, customers, continues our programs rental to which with resonate see we to continue In

compared future This Our to March to represents in was rental profit fleet XXXX. of for units in revenues. for end XX to a at $X.X same the the quarter the rental $XXX,XXX XXXX. potential period of Gross $XXX,XXX close grew million

and to million, service business progresses, margins for the the take $XXX,XXX to continue expenses our business strengthen, primarily were the than million for to and in of expenses first $X.X for two to good past to marketing as for compared We reductions Sales expect due and cost less our million gross due our as to implemented effect. quarter. rehab changes quarter year for a and the million the Research the of first administrative factors. quarter XXXX, about $X.X XXXX. for XXXX. were year changes run $X.X $X.X second for was this first the the workforce the development per were compared some in million made earlier million XXXX. we this be May $X.X expenses reduction quarter, quarter to quarter to we With compared quarter increase decrease General for This quarter organizational rate quarter $X.X see half the to

second, diluted March based Please XXXX Net $XX.X former one-time the quarter March March or our quarterly March Form and share development of XX, payment XXXX. XXXX. the The which $X.XX million million. we and per due details per dollars XX, XX-Q three for related three $XXX,XXX quarter expense at in ended Cash months China, severance XXXX compared share further the months for CEO, on stock departure the diluted made to increase $X.X was regarding third related or and XX, see report in of XXXX. on the basic activities ended to $X.X $XXX,XXX basic ended $X.XX million adjustment compensation XX, first, was for hand to the a business of the our additional loss for a

I'd for board, colleagues back was the my I thank be the eight it years investors to part at him, Ekso Jack, tremendous turn over Before our of the like able and to I all experience of. to Bionics

by creating science help that market believe an serve We applications and fiction. we I immediate a Fast what tirelessly was new we deal, the base reaction the explained I to can you. built exoskeleton Ekso to to of some the the and operationally an transition year equally Jack, we When traction was thank large with will an in it, that are have with you endless the today. some can the adoption realize the great industry. knew begun be get nobody for tool both team that first tool of is capacity to today, will designed end and an be momentum, that have that EksoGT, steady side a ensure to A work Jack on going beginning back to continue one accomplished through joined the and we and forward. professionals. we easy and Ekso, a team incredible and and incredible believe forward engineers new developed, when rehab

Jack Peurach

in a last high increase Max. same Thanks, guess on A note. nothing I out over quarter XX% there's going year. revenue like the

rehab ago, we focused on we and notable backlog The the said $X But I'm are completed. time in go of the quarter first as a time into future the minutes million achievements. than I we businesses business our more a few in first hit just all

you what be Going profitable forward, us the hope that ability that way users our hitting deliver the line and technology may products will opportunity and without a to Operator, now to to hit allow our questions. best on stride end for we promise to on focus our operational for help is serve, open the large achieve gaining the market to our of is a there they the patients will compromising significant efficiencies our continued customers growth for theirs.

Operator

Nudell Bruce Instructions] [Operator of SunTrust. question Our line first comes the from with

Stan Fediuk

Stan questions. Hi. the on for my Bruce is Thank you taking line This Fediuk for Nudell.

forward? on higher trends unit How provide were there First, about can in going quarter? the just color In should the unit think medical, rental we the units. more trends you

Max Scheder-Bieschin

the This being the Stan. Hi, since on for is Thanks for questions, that's and Max. financial oriented. call

States, It as significant increase on I a distributor going long program adoption. the EMEA. that United of States. quarter new you one quarter-to-quarter, we those weighting indirect think will equal mostly shipped we're of what's XX And accelerate units in And So should the eyeing very were from of indirect good can a the as in were those in we United this sales. I continue opportunity and that And good experienced we're carefully, to see on an really really our is think and we to rates States, mostly rentals terms quarter XX that keep XX sales but XX EMEA. direct tell trends, to the those the that as see the and experience quarter, and an to you'll think the started is in we and in between And sales net in partners of XX lumpy were United EMEA the rental rental you last be rentals, it's conversion market, cycle. in of to driving this be XX, front.

Stan Fediuk

between industrial, In the was and what Okay. split mounts? vests

Max Scheder-Bieschin

units We units XX shipped the vests. industrial XX were in XX space, mounts, were

Stan Fediuk

Great. JV in is Okay. with the there China? And update any

Jack Peurach

Stan. Hey,

We for in opportunity our cost for both the product. China, with and to the operationally extremely press of continuing that. are excited about We're forward downstream

As with have do we've we final not of do decisions to agreements we something will any made announce, final underway. is but work that today, or it. When partners,

Stan Fediuk

what Is market of potential there know for is? medical - you the do Chinese the size

Jack Peurach

- The market It's significant. also the applications, immature. for quite rehabilitation rehabilitation is

it's the size market. multiples order So it's it very US in of of but significant size to the properly, difficult quite

Max Scheder-Bieschin

of you strokes. sense, - the XXx very Stan, estimate in market, terms it's a States. give XXX,XXX every stroke There's as immature we Jack the year said, number To a it's United but size of it's in

Stan Fediuk

you additional some details can license And Okay. agreement on the Japan? provide in

Jack Peurach

distribution That market. Daydo new market, Japan. technology useful they we to that in Sure. is if products exclusive distribute in And broader bring we has They find products agreement our a we the in develop to, to Japan a the market Japan. an into markets, of and a agreement the of opportunity in outside agreement. products that have the can nonexclusive construction use It's market outside - those home home our our have new

Max Scheder-Bieschin

as They're going not to be that's but paying rate us a been royalty well, disclosed.

Stan Fediuk

best. to - And Okay. my also that's also all you it questions I then just wish think for want and Max, the I

Max Scheder-Bieschin

very Thanks much, Stan.

Operator

you. Thank

for turn I our reached the questions. end over to allotted comments. the for have We closing of time floor back would like Peurach Mr. to

Jack Peurach

you us Thank for all today. joining

true patients, opportunities committed demonstrate can and that I I workers restoring value improving the first in believe new there products a to and are investing protecting, our realizing think creating value the in our in radically our that in momentum will for markets to quarter exist results human value charge I'm products. opportunities we we mobility. of current and to are the and the is we excited gained provide the identifying capture to increase significant really and to that the and customers. innovation from lead and commercial I believe continuing toward our that clinical trajectory be also

Operator

This teleconference. concludes today's

now disconnect your your time. Thank you may participation. for this You at lines

Ekso Bionics (EKSO) 7 May 182018 Q1 Earnings call transcript