EKSO - Earnings call transcript Q1 2020 | Ekso Bionics Holdings, Inc.

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Operator

Greetings and welcome to the Ekso Bionics First Quarter 2020 Financial Results Conference Call. At this time, all participants are in a listen-only mode. A question-and-answer session will follow the formal presentation. [Operator Instructions].

As a reminder, this conference is being recorded.

to host, pleasure Carey. my now introduce David your It's Please sir. go ahead,

David Carey

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

Joining Peurach, President Glenn, Bionics are Executive Commercial Ekso and Jack Chief Officer; Chief me Officer; Financial Shaw, Officer. and from Chief Bill Jack

Ekso the results for Bionics company's XX, website. ended the release press financial of copy A the released is today, quarter March Earlier XXXX. available on

statements management within begin, the Before the meaning made that like will that make Act Reform would you call are statements Securities XXXX. I Private federal we include Safe the remind forward-looking the of which of securities this during to Litigation of Harbor law, provisions to pursuant

risks be management's statements. in Any current on regulatory that or statements, statements should and These statements. actual that forward-looking operations, historical various by could or those forward-looking including assumptions. this upon our place not future to undue involve not estimates you these our expectations, governing or forward-looking are are the to statements. call these of statements based from materially and implied or cause expectations financial All facts contained anticipated differ uncertainties and of Accordingly, results products operational landscape deemed should events reliance material statements be

future description other by information, of and any regulatory outlook required Commission. as our Exchange Ekso For whether update uncertainties forward-looking events associated intention risks the Securities obligation, or or our statements, because to and the except financial a with list projections, see or and disclaims of with or otherwise. our businesses, new operational filings please law, or revise any

accurate April XXXX. time-sensitive XX, broadcast of contains the as call only conference information and is This today,

Peurach. over turn to now I'll call the Jack

Jack Peurach

Then to Jack call joining David. on call COVID-XX. COVID-XX's results. Thanks, today's first update then strategy thanks who by more segments detailed segment operations call overview to joint to the our will an medical describing of our start industrial summary for device China commercial pass I and a our to and impact on the for an Glenn will Bill and financial turning our provide during today's call. and markets, like everyone I'd quarter of provide And before venture

all patients and always of our our customers and the Obviously, Ekso priority. health employees, safety are their top

of took As employees the began Ekso move steps to non-essential magnitude unfold, work home. from pandemic this to we all proactive to

operating the we At same a and environment. included adapt series time, connected customers reducing staying measures new to of implemented to virtually with this This costs.

orders, our impact on Many Since mid-March, customers business. had of weeks subsequently, opted in and our last to typically has the booked quarter. an customers, the pandemic the delay which few are

our we million $X.X quarters. result, first and is results which prior quarter forecast a generated well revenue, As in below of

to are pending took It the operations customers, strong and orders is our front that, from delayed emphasize current to a most environment. with feedback are on a and more to business of to immediate on not canceled, challenges in then, selling maintain near-term solutions. more a pipeline environment. creative action Until working normal us, return we adjust based important We

medical exoskeleton and have We our allows current and interaction. engaging and us which selling prospective our team implemented and sales of continue settings. in enables marketing without solutions in-person This both need virtual the industrial strategy, to to a for discussions the with customers initiate around benefits our continue the

at their all training without to facilities. service and can adapted programs ensure Ekso Bionics their personnel customers being models also our Ekso present and support, without We interruption continue

able. to as These talented us and crisis, were normal resume enable we're and adjustments, operations valued furloughs operational significant these cash expense extremely made to weather decision difficult the cuts, addition portion we of our business made including to preserve a to employees. this In furlough our soon as dedicated,

turn will global to update commercialization I Bill, who strategy. on segment device time, the and provide this will our call over medical an At

Bill Shaw

the that everyone you, challenging for time care post-acute clinicians. a market is we Jack. patients, serve, This Thank in physicians including and the

Jeff This canceled been orders, as have during is sales priorities delayed distinction As were sales have from the shifted. two important many months opportunities an as strong our generating first of mentioned, XXXX. of momentum we

point, seen now this To we've expected three in opportunities in were that close close April. already March, to

situation, exciting for dealing high devices, pilots are several interest that we Although with closed including March. innovative an Ekso remains our in unprecedented

with has progress implement continuing solid like are and make I'd under strategy results network to ability unique share how a virtual Our to two strategy. to circumstances. we these yielded adapt our of quickly selling examples

field pilot a centers states. Vibra multi-site a long-term and rehabilitation signed program of Healthcare, acute with across XX the We medical with leader in care,

this launch QX QX. to early expect We pilot or

the As selling a to in the sooner. an shared us our rental bypass pilot we've Ekso allowed to process program past, center has of program a benefits help longer experience

skilled We also Ignite of signed operating Ignite network a Illinois-based is high-end nursing facilities. facility Resorts, Medical an post-acute operator nationwide. care

us selling strategy, are engaging advanced customers webinars, by Ekso These and educate online educational keep our and virtual to we help and events features of our customers addition our In value proactively connected the conferences that hosting include training. with devices. video about

For example, well prospective clinical date. to educational we series started and been customers webinar attended current that six-week a for has

network programs. educational tailored We series around also operators, individual more specific launched a their for

our products virtual enthusiasm for sustain near in these term. the events, Through customer we can

acquisition access options also still are technology. to flexible our make providing it easier for to We customers

million. revenue our contract, purchase. great the rental current as of rate $X.X exceeds all rentals sales, to bridge Additionally, strong At US to well to to remains that yield deferred sale rental rental from results revenue convert our a XX%. units program as of a rental assuming QX, as end continues cumulative under conversion capital Total upside at

able Internationally, to upper new we with our were new several close device. pilots extremity

in a rehab the share a device on pilot coming more being have currently the to quarters. program developed. pilot We rehab center this to that tele working is Germany We'll tele in

underscores that patient true value the program. Ekso an highlighted story we Last of a quarter,

one Megan Burns. ambassadors, patient of story like I'd call, today's a For to our highlight success with

had and cane straight having After spinal operation and her a a spinal ankle an braces. cord, stroke. a used to resect then she Megan wheeled wheelchair, then a walker,

the doctors was at with. she While to the not happy still thrilled level with function able their she progress, was were

opportunity of device, the After an be a project immediately first gait functions found an her the pre she of had Ekso. use part discovered of with She help to her research posture Ekso using balance and improved. the

but more cane. without comfortable led After to only Megan confident very to several more steps, not became which sessions beginning quality She was steps. in the her the Ekso, in device, and community her taking in walk higher

again her Megan that, after had and was Soon golfing life social back.

walking training, We years. has her continued from nearly been wish lessons Megan two and her now success. unassisted Ekso for the carry to continues She thank for and her story,

maintain Looking begin up our particularly again. consistent points ahead, and global to the prospective strategy customers, once is country touch commercial of different number to with current open the regions economy of as one focus and the

touch in scale operators decision with remain prepared are We network makers to orders ramp and key and up. production as

unchanged ability accelerating to in recovery remains market and strategy rehab a with our movement. expand inpatient and lives IDMs of fulfill footprint long-term and the person's shares to network improving achieve by our further our to Our mission operators

the At Peurach. our I'd back Jack call turn this like to time, to CEO,

Jack Peurach

Thanks, Bill.

update segment call the an turn on Before China industrial I joint provide our and like to Jack would to I venture. Glenn,

likely delayed Near-term in Starting first the customers with be adoption impacted levels our decisions device continue COVID-XX. are purchasing quarter similar to by through were navigate and to to industrial, medical order late the as severely pandemic. segment,

development new stated are more business in activities fourth vertical we we go-to-market on and the our As call, by segments the quarter opportunities. strategy evolving continually diversifying our

Additionally, EksoWorks we're evaluating customer-friendly immediate make product to use it needs. based our devices on their acquisition our for easier optimally models to customers

We the customer are are very we with the are we seeing optimistic progress making. interests and

joint venture. Now, our turning to China

along JV partners a Foreign the voluntarily the As discussed or US venture. joint notification of in Investments, submitted to QX previously, joint to Committee our we CFIUS, review with

concerns. to to continued engage with We CFIUS our address

to COVID-XX, in the no large extended with XX CFIUS' due part of XX. deal imposed to conclusion has than with May a additional assessment for later targeted been days, measures the an JV China However,

cost may activities. introduction the impact revenue reduction As delay it reminder, not while plans, the of will delay some our

turn will over Now, results. first financial call Jack our to review Glenn I the to quarter

Jack Glenn

Thank XXXX manage first our for the customers prepare you, by as to COVID-XX quarterly generating revenues fourth quarter during the Jack. of priorities their impacted the in business and for significantly record sales their After quarter were shifted of XXXX, pandemic.

to generated compared first revenues million XXXX. $X.X the Ekso for same of period in million $X.X XXXX quarter

the that not quarter, booked As are mentioned, are customers of and Jack we last have from of their many our which delayed, originally opportunities, weeks few in cancelled. the heard planned typically

profit is period and Our of $X.X $X.X of for approximately the attributed margin million, medical lower gross compared The to of gross a for sales. was representing a ago. the a a XX% profit same margin gross of gross device in XX%, year decrease gross million to volume profit primarily quarter

health we mentioned, Operating expenses expenses about for taken approximately first or $X.X have $X.X in XXXX, million to this order As million were of the million measures reduction to the global $X.X reduce crisis. had XXXX first of to of Jack a quarter quarter compared for weather XX%.

XXXX, XXXX months the gain the a revaluation a associated in $X.X same liabilities of recorded compared million issued the and warrants revaluation $X.X three to for issued in XXXX For XX, period XXXX ended we the of warrant million in XXXX. March with to on of due warrants loss

per net or compared was the in share about a first $X.X of loss share $X.XX million Net for loss XXXX. the $X.X quarter or of $X.XX million per quarter to

$X.X continue reduce quarter compared in was to for period adapt We our conditions. in current to $X.X the Cash market used XXXX. operating of cash the XXXX to activities utilization to same first million for million of

XXXX, balance XX, cash March had $X.X of As million. we a of

the a On intended XX, company's primarily share stock. raise split, stock trading common reverse the announced price per March of X-for-XX we to

action, NASDAQ this X. required the the market As Ekso of listing result capital price compliance threshold by rules the a regained with on of minimum April

our further earlier regarding see details quarter. the filed for today Please XX-Q

Operator, for open questions. you may the now line

Operator

[Operator you. Instructions]. Thank

coming Lee Wainwright. from Our H.C. from first today Sean question is

is line Your live. now

Sean Lee

Jack. begun you areas reopen, have areas Jut Because an idea what the and have maybe different Good lockdown remained are could open percentage afternoon, customers to your get would percentage the of Bill what have have and idea staying different and maybe on on Jack, better reopened closed? provide some on scope COVID. of a impact rules the to or like

selling activities? that, follow-on Thanks. distribution? switch how a start and to Would can any inventory we resume impact up quickly on normal as turn and areas supply you see the And on back reopen, as

Jack Peurach

I'll turn it This Thanks for Sean. and P. is this Bill. to the Hey, Jack question. over introduce

we typically customers where centers, they Difficulty] have restrict that seen operations them undertake. or inpatient the are close, any Our of those rehab [Technical we limit but

in. rehabilitation But serving be perspective, may they come don't people they shelter So, facilities in when outpatient open. some where where conditions, we you home just from who close is and patients get place at seen so inpatient have they're all an who to have they're are can

somewhat let limited flow. or have a patient that. about operations Just restricted little and down bit I'll Bill talk

In that existing recover all we've with all connection terms potential maintain been of working to continued with of we've this, our on the our and to customers certainly ability customers.

ready ready are soon going really As the we think delay as to I be we are go. to a there. There's customers are go, to not

it over color. turn add Bill more to I'll now to some

Bill Shaw

patient say, I'd the are down rehabilitation. overall, Yeah. definitely volumes just across inpatient

feeling that general things a the to significant will think is begin I uptick time. as normalize be there over However,

There's that capacity, over are at are or fewer. sites but some actually those

have So, back with recovery especially procedures up. uptick that elective as to open started slow an regions we a volumes, are certain in hearing experience

the recovery a So, target. optimistic, cautiously but we're is real still moving

Sean Lee

color. And And in I more with that. mentioned thank remote I new things. deal could on if for a you hear details was you Germany prepared additional you the health the provide to also, some that. remarks, on Great think wondering

Bill Shaw

too a come. much being that. for It's telehealth. our new on give We'll months we provide the customer to extremity Yes. that sees comment. essentially, utility device more did upper early have a definitely I in little to of useful But,

care you a different looking the centers that now of have patients, environment. right can lot ways continue So, to that they at of are take given obviously,

telehealth. pilot to through And a run so, our with device looking he's

us, up and we'll think detail that bit as But I little to that able that a running. to presents gets on opportunity. an give So, be more

like our with just positioned offer. one I well one the we we're post-COVID feel with to relationship we that think technology

Sean Lee

you. Thank I That's all have.

Operator

Weinstein Our from next coming question Nathan from Capital. today Aegis is

now Your is line live.

Nathan Weinstein

guys. Hi,

difficult good So, taking question my a thanks on preserving in for and cash environment. job

are just have confirm. this cord patients in who about this, stroke wanted Is and the can they but it currently the I case care injury it need to a of get You a rehabilitation spinal at or need that from exoskeletons it? your dire time if spoke

Jack Peurach

using who strokes case. who rehabilitation have Hey, product. Nathan. our in There's facilities Yeah, inpatient that's still still end patients up the

those inpatient, I is would be if elective that an they patients to continued they to the versus have in more into utilization conditions are access the think be we're that, when there's straight seeing a would such discretionary condition home who right and either the centers. critical subset, still certainly, But, able go or they might immediately now, of and those element in may come through for their products our back a procedure have future. not access which

Nathan Weinstein

rate from see? the that utilization able is from to your through that you're that device it Is EksoNR Does connected customers? basically come or pulling

Jack Peurach

Both actually.

Nathan Weinstein

operating Okay, question a another virtualized thanks. your And environment. just in then, company and about

nice some adapted. made comments on you've You how

use customer remote unit capability terms send have to you in of now, and of it through most that to Just the to sort a unbox a assistance? do them fulfillment, of like if put

Bill Shaw

say, that's that. of whole training. relates so one situation to us it forcing the It's of Yeah. time just our I'll as how we real probably favorable Jack. that consequences I'd training, innovate in of take deploy to one, this

great it's important. really a because, obviously, So, question that's

So, adapting right new between of to onsite. now, a and team a be our of a done pathway can training balance very that delivered training quickly nice has online job

reality of backlog do the trainings. a is, have think I So, we

onsite so, online. more now customers monitoring again. with that right are something we that's doing And that when we piloting have us. pivoting get are that And we're can we to open to But

to going back more opportunity site of drive site timing But of So, us efficient terms in is and to live. a we're course, it pathway. an handle we by can for it when get onsite the

Nathan Weinstein

Okay, thanks That's really a lot. helpful.

Bill Shaw

Sure.

Operator

I'd reached back comments. closing over you. our We've to any turn for like to the Thank session. end the question-and-answer of floor Peurach Jack further

Jack Peurach

to through actions taking business reducing while our is strategies. and selling Thank reiterate of ensure and you cost want all Ekso actions that for continuity necessary Bionics to the employees, joining the I us safety today. aggressive health virtual maintaining

we it related restore our business activities to on when pandemic uncertainties full begin service the and normalize. us are project to to market to Although for customers, make impact full difficult the conditions market prepared

our and term. in about products We remain our customers continue in value see the create investors interest patients, long to optimistic to for and prospects

Thank joining you today. for us

Operator

That you. today's teleconference. conclude does Thank

for have this and a your disconnect We participation your at may You today. day. lines time you wonderful thank

Ekso Bionics (EKSO) 30 Apr 202020 Q1 Earnings call transcript