you, Thank Larry.
to and the expenses credits underlying transaction-related Life I visibility allocation that Before and resulting our and discuss reference both the the results I QX non-GAAP to performance the from operational of Ward, the which table operational into remind order of reconciliation amortization integration review expenses, reflect today's on I'm tables intangible obscure the as the for a the listed GAAP of everyone both a can provided I going the of and facilitate you encourage GAAP quarter purchase Ward.
In results results of earnings want discuss basis, investors to and financials. first quarter, 'XX excludes in items results understanding rebranding Life acquisition GAAP and to these assets the release, in of price the I AlterG, which
revenue or of $X.X million was XXX%. million 'XX, 'XX, from systems $X.X $X.X the approvals. $X.X the QX Revenue reported first in the million The million XXXX compared XXXX, ReWalk of quarter Medicare in in Ward up up Life quarter sale by from of million of to $X.X QX first the driven
our Revenue commercial resulted the QX reduced expectation to from sales impact and teams, AlterG of quarter. which the capacity in was the due quarter, in integration was below the temporary in which ReWalk and the AlterG training 'XX $X.X million former of
helps X 'XX.
I'd for to activities $X.X 'XX 'XX, our beneficiaries million, which and Other systems results. you like from to was also interpret Fortunately, to consisting of sales completed revenue sales financial issues effectiveness in compared to and myocycles, affect the which productivity Medicare the of improved far $X.X prior of QX these were experienced quarter. ReWalk up recognition QX in and thus discuss million QX we have sales revenue, primarily
Medicare ReWalk obligation must system submit requirements. takes for payment, completes us be for the ownership.
Typically, order the Medicare the revenue satisfies in claim a beneficiary and recognition to and delivered First, this performance
with be upon Medicare would systems However, not eventually establishing the Medicare record the of Medicare we recognize delivery not know for did final revenue XX claims and recently, did of Medicare because we information recognize payment we which we now enough we the did a claims initially approved approvals, first provided, know any have amount.
More a revenue payment to track nor system.
in in by had took provided units 'XX, the result, not on approved. revenue QX a a of a eventually to claims service factor that the Medicare which percentage As revenue, discount customers that we're previously be may to applying assuming we the we in
ongoing to As experience. factor a reflect monitor continues rate that want implications processed of to I are and our that claims we adjust point There to are our the will grow, discount financials of needed as for volume the our couple approval out.
are since revenue our XXX% gross serves we of recognizing are this margins product methodology reduce of we of by the Medicare reserving. portion not cost, we revenue are the -- initially about since to the revenue a only First, amount
revenue prior a eventually is portion later can these of later there revenue thereby approved, that amount QX the are approved, claims recognized sales, owed Second, we additional an is will from for Medicare full approximately corresponding we can revenue Medicare on which we total, prior lower be claim of all we margins from expect cost that when initial if new the the the no by Medicare.
In in recognizing recognize In quarters, submitted with approved the claims sales. by quarters. additional supplemented of the the recognize future claims $XXX,XXX recognized
affects to XX% the ability that recognize Medicare factor is and insurance. another cost our covers there's revenue, customer's status goods improves. each review, of the services of of To supplemental it and Second, that
and recognized out-of-pocket is transaction be are we I by recognize history for no only same gross revenue this The of beneficiary described paid have Medicare remaining implications reduced will the the as from claims the by conservative that the the the have revenue insurance provider. The of may will other our payment ones the we supplemental supplemental upon the revenue policy our insurance.
Since for insurance with revenue value are by the the the margins XX% not supplemental who approval supplemental final insurance, Medicare XX% payments. earlier.
Initially,
affects $XXX,XXX percentage these we X in of approximately we by gross we by claims.
Taking approval an approximately 'XX pay approximately However, and as $XXX,XXX quarters additional in this margin recognize insurance, revenue QX could QX of insurers supplemental factors, supplemental of and Medicare claims that together have have X reserved in revenue points. pending future our 'XX,
Okay.
pipeline. to Moving
major Our pipeline quarter improvement product first metrics the X lines. our showed across in
down is the systems, quarter ReWalk self-pay of active up last with cases rentals in VA X X For and and XX X consists broken from individuals. in which with hospitals of is Germany, current XX pipeline
QX of Germany XX and cases which the our 'XX, U.S., end XX beneficiaries. are for Medicare overall of XX was of As number process of many ReWalk the in with in in
bookings For 'XX. orders so QX This performance sales leads pace quarter for backlog us from 'XX level.
The AlterG and Systems units up combined of improved the with QX we AlterG backlog. gives 'XX new QX systems AlterG with improved of confidence AlterG in this ended far XX is systems, in XX backlog, an higher in
for was gross XX.X% XXXX, profit our -- the XX.X% quarter Moving quarter compared revenue gross non-GAAP in excludes non-GAAP was the adversely or first compared to million On XXXX. listed $X.X XX% basis, primary affected of GAAP In revenue the first quarter million table, as profit margin of XX.X% the profit. to in XXXX.
There the first in quarter gross non-GAAP in which the reconciliation XXXX gross which $X.X attached million revenue or of $X.X drivers of or a first to of of X items XX.X% are of QX.
low production lower absorption in and volume overhead of AlterG the ReWalk the caused First, training our percentage contributed and approximately impact teams AlterG to factory.
The this of integration points of commercial former of the the revenue of X impact margin temporary QX. by costs was of and in
the revenue was claims applied factor I to that major initial that second the Medicare previously we recognition discussed. The
an denied, As points the up margin. potential we to gross of of be to achieved X had for could not if have we these for reserved I described, claims some additional
that 'XX. to not Taken It's points QX contributed excluded factors our revenue up percentage and this XX together, to margin recognize is from permanently in results. these margin of important to X impact
XX% recognize of claims quarter as non-GAAP items the first resources. expenses. as attached basis, increase the commercial we to GAAP approved, million 'XX, XXXX, of $X.X headcount On expenses build-out increase.
The up expenses were compared $X.X which $X.X this are the $X.X a Importantly, is 'XX million our AlterG million the $X.X table, in excludes primary reconciliation a driver or in listed from million in as in of and QX additional million operating to periods.
Operating $X.X QX future income in were this adjusted 'XX. QX in of acquisition million the compared the will operating non-GAAP
factors the 'XX expense phasing XXXX seasonal to acquisition in training to operating have the future activities to additional of and and highest for savings We team, quarters. of due the related the in expect integration QX level commercial
described loss the gross the was 'XX.
The in which $X.X in quarter the million a was non-GAAP first for excludes quarter loss loss first compared 'XX reconciliation basis, $X.X of million operating XXXX reduced GAAP of to margin. loss the the table, was factors XXXX. items of listed operating compared Our $X.X I $X.X in an million in On million the operating same non-GAAP in to affected QX by operating QX the
in expect our volume narrow loss ramps through we non-GAAP year quarterly the and as million up.
We described, quarter to equivalents our the as considerably ended operating move debt. no with cash Larry we As sales $XX.X and
Our higher than QX $X.X in million, which cash expected. usage was was
The year capital. traditionally additional variable I of the insurance payouts first timing of and lower and the amount in were gross collection, receivables and higher payments past quarter factors, recognition of consumes the for because margin payments policies spending.
This and revenue cash each of including seasonally described there fluctuations compensation, highest working our of sales quarter, earlier, annual severance promotional
that sales and ramps expect recovered of portion capital year as normalize. through overage gross the as improve working we should from margins our the QX We be fluctuations move a volume up,
All right.
Now discuss I'd like to guidance. financial
of million year, of on based beginning call be AlterG believe Medicare introduction new revenue sales an increasing to line, Larry is remarks. should $XX the we and year in appropriate back further to I'll which As range. to contribution product product by expect for $XX build the that, augmented continue the we we from full a the turn mid-XXXX. year the of With The will revenue at through quarterly stated which million, the
