APYX - Earnings call transcript Q4 2019 | Apyx Medical Corporation

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Operator

Good afternoon, ladies and gentlemen, and welcome to the Fourth Quarter and Fiscal Year 2019 Earnings Conference Call for Apyx Medical Corporation. At this time, all participants have been placed in a listen-only mode. At the end of the company’s prepared remarks, we will conduct a question-and-answer session. Please note that this conference call is being recorded and that the recording will be available on the company’s website for replay shortly.

Before we begin, I would like to remind everyone that our remarks and responses to your questions today may contain forward-looking statements that are based on the current expectations of management and involve inherent risks and uncertainties that could cause actual results to differ materially from those indicated, including those identified in the risk factors section of our most recent Annual Report on Form 10-K filed with the Securities and Exchange Commission, as well as our most recent 10-Q filing.

updated SEC, to our which be filings in website. may the with are factors from time time our Such available on forward-looking otherwise. We or of to obligation information, statements our new or undertake result as events, publicly future a no revise update

presented also We to certain will measures. these non-GAAP generally not refer that financial Accounting Accepted most Reconciliations of on references with in those with of and financial financial measures non-GAAP accordance to the in Generally include the Principles, release call portion accordance measures the are are press comparable in This to Relations available our calculated GAAP or GAAP. as website. calculated measures earnings Investor

Chief like call Please turn the you. now Charlie go over ahead. would Goodwin, to Officer. President Executive Thank Mr. I and to Apyx Medical’s,

Charles Goodwin

to our our call afternoon’s earnings and on fiscal Tara quarter by joined I’m fourth Semb. year call. Welcome, XXXX this Chief Officer, Financial everyone,

Tara will of fourth financial as earnings our review afternoon. and a then quick high-level and this with I’ll you highlight call. agenda some performance the with today’s quarter XXXX, me guidance and for well we you in performance fiscal of year our for introduced in detailed fourth quarter operational of as Let overview results discuss quarter XXXX. first I’ll revenue recent our accomplishments. a provide our for operational then which a our our with provide begin XXXX, press financial release

well by And spread some the of and our pursuing questions. share will procedure-related of the as then, additional about of call as prospects including the are as potential the four growth then I’ll we XXXX, remarks the our strategy, crisis long-term as priorities disruption initiatives on COVID-XX. our and business a closing thoughts strategic open for for part we coronavirus, result the caused current

a With for important Medical. that, XXXX get progress of started. let’s year was Apyx

– XXXX, We financial exceeding XX% revenue year-over-year. are guidance range of in XX% year-over-year to of growth year our our total incredibly fiscal deliver initial growth XX% pleased year to

Energy Our cosmetic revenue to by success in generators exceptional of of reflecting XXXX, drive outside we our Advanced on the strategy commercial performance year-over-year distributor adoption the In handpieces partners distributor in the the demand market. XX% existing securing and surgery of U.S., Renuvion from markets fulfilling by partnerships. our increasing are product the new growth was utilization U.S. in focused and markets primarily continued and growth driven our registrations of our

this in success execution the and We strong are had for believe well as our we the global strong proud of our very year, of team XXXX the Plasma commercial as reflects both it Technology. Helium demand

growth our surgery long-term year, initiatives addition later to in strong the performance for to respect to we make the position four discuss pursuing prepared of market. also Apyx my progress financial Medical strategic this will I initiatives past with are we remarks. In continued cosmetic each to in these

ability of sale transaction moment. for back to Stepping with Symmetry Plasma the the the focus capital of provided XXXX Technology. the Symmetry a our infusion to us The efforts the Surgical. first maximizing our following of core full-year Helium Surgical and our on marked potential segment Fiscal

Medical, We do. coverage cosmetic a performance our chose expand reflect U.S. sales surgery in commitment entered an which the peak name, market team everything to with XXXX of new we enhanced and to Apyx to our we that

on market our the many invest areas order key addressable year, in our multi-year the to a and over internationally capitalize is company we business Medical transform Apyx have thoughtfully deliver continued in that well-positioned in of Throughout a U.S. to peak to into performance period.

the we And room believe more have getting for growth in improving success of importantly, the reflect perhaps to efforts. XXXX significant and in continued come. started profitability performance operational and just financial we’re Our these and years

financial during our of the update fourth performance operational Turning quarter. to and an

to year-over-year. total growth achieved representing revenue XXXX pleased $X.X XX% of fiscal strong We’re million, We a QX. to in close bring

growth demand Advanced global was Our total driven for revenue by our Energy products.

increase year-over-year. XX% In our $X.X we Energy sales Advanced business, of million, of generated an

revenue OUS Advanced strong utilization-based in contributions both Energy by of our growth our the with primarily for is along the U.S. markets, demand handpieces sale from fueled Our revenue generators. and

Energy more our Advanced decreased impressive expectations. X% Our in than sales $XX,XXX, offset consistent business, declines modest OEM with or by which performance our year-over-year,

XX% From year-over-year sales increased million, year-over-year. of for international the quarter sales million, $X.X a by standpoint, fourth our increased $X.X or and total U.S. XX% geographic XXXX our or

our to operational progress. Turning

pursue of our fourth procedures the indications procedures. to During technology of skin use strategy and for both progress to clinical respect with resurfacing laxity in regulatory Renuvion XXXX, quarter the important we made dermal

investigational in Consistent single-arm, evaluator blinded United with centers studies support quarter two our to perspective, clinical clinical of indications the these we Both IDE fourth target our the States. enrollment studies, studies the to will procedures. multicenter, up five designed began pursuit conducted for in during are at stated be new expectations, that

the with journal of regulatory Retrospective conducted evidence, by Plastic who Single-Site Doolabh, Renuvion, examined expanded and progress, peer-reviewed portfolio for XX our American supporting of The access a Surgeons. Reconstructive Society data to study the study in Postmarket titled Chart Review by a addition Subdermal Coagulation the Dr. In clinical and it Plastic was patients. Global we of Surgery, technology. open Renuvion Journal, an owned is deidentified Procedures of published use In new our November, Open, was

suggesting was and secondary who Renuvion found liposuction that The had was for events or patients study’s device-related that or the subdermal were and patients that had of Doolabh Dr. coagulation. no outcomes none adverse a information all procedures, complications final to objective procedural where noted. required safety undergone for a used procedure, acceptable collect revision

launch the fourth our of of we XXXX, the Plasma/RF, APR commercial to our portfolio. began Lastly, limited the quarter product Renuvion during addition Handpiece, Apyx or latest

cosmetic a needs available customers. have we and distance instrument design and multi-configurations It meet bullet with our instrument enhancements, indicators features several smaller tip, surgery surgeons help handle near the to application site. designed is a unwanted shared energy on be diameter in Handpiece important shaped minimize new entry of shaft, the calls, earnings percutaneously incision APR a to you used As order to prior in the

The input customers that was of is handpiece feedback on Handpieces members surgery creation surgeons. Medical cosmetic resulted surgeon in that process and both to of informed Board. resonates our clear feedback by the development our strong of response and from launch this it received Based with extensive APR Advisory our in really the development our informed phase, a limited cosmetic

in Tara the fourth which XXXX, and I’ll call afternoon’s release, Tara? now for guidance over results discuss financial updated year turn quarter our XXXX review quarter to and fiscal in first detail our to this we

Tara Semb

to after I to providing we in a overview by detailed our close an and as the of as filed and this the press released afternoon. revisions Charlie. start financials, want that the X-K separate today market in Thanks, historical SEC announced restatements are making with

we committed the diligently and Throughout financial of XXXX. been identified XXXX, have to upholding remediate Apyx standards to material weaknesses reporting. highest is Medical working internal controls in

on discussed we third XX-Q during period items our earnings quarter two of XX, form the call, identified filing As XXXX. preparation our the ended September for

first – of in of components included compensation related state stock-based certain The to treatment expense. our the calculation item the

incorporated contracts. the separate period tables related the detailed XXXX. XXQ accounting three on nine – results All our September for item into and months were for to in form our these OEM items in ending second revisions certain QX activities and related XX, to The predevelopment were

this XX-K X-K release of filed preparation which for were the in items, a reconciliation we afternoon. which separate year two we During of press detailed an in in fiscal new XXXX, both our our described identified and table,

First, markup of expenses. we reevaluated our resulted discovered subsidiary and elimination sales an administrative in intercompany of on sales. This understatement cost consolidation of the general including, the and markup in company error selling, corresponding the a process intercompany for and accounting in

financial months XXXX nine XX, ended no three that year the errors XX, Second, and income of XX, audit relied – our aggregated the and and be options restated. can and March September be we employee tax the XXXX, concluded accounting management December ended in prior XXXX, and consulting errors taxes Due and to related statements ended XXXX. impact of the our previously after auditors committed with payroll will filed three the upon the XXXX identified identified, for and months stock longer committee in for exercise to the

restatements, this period. within XX XX-K extension XXXX day calendar file fiscal our To to to effort intend complete for form a file we every to request and the we’ll make

The to our revisions today impact unaudited the discussion our historical of as results of financial reflect these well as financials. restatements,

of the Investors We impact in are form Relations of have reconciliation release afternoon were separate website. items both which page table, on filed X-K press of and on detailed our available the this and a these

fiscal fourth to year XXXX financial of our Turning results. and review quarter

related segment operations basis are from to divestment for our for that As reported business in on our financial a XX, December a reminder, XXXX ended impacts and are results XXXX. sale commentary period core and Any discontinued follows. the as the fiscal continuing financial operations our the statements excluded appear of

for growth primarily revenue which or fourth Advanced compared million. revenue sales, XX% in XXXX million, was increased the year-over-year last segment, $X.X XX% total $X.X $X.X $X.X quarter segment by to Total million, year-over-year to or to By million, year. fourth increased business quarter driven million Energy $X.X

period. to total decreased XX% X% respectively, fourth represented of Energy approximately to and XXXX, Advanced OEM revenue or XXXX. and the XX% the XX% million OEM year-over-year the in sales quarter and prior of $X.X of $XX,XXX, XX% in sales year in segments quarter fourth compared

in United increased $X.X approximately quarter sales $X.X XXXX. XX% $X.X year-over-year XX% XX% million XXXX, revenue million, to or compared represented revenue year-over-year of the States approximately total to to sales or increased million, quarter in and the International $X.X approximately Revenue of XX% of international in of total fourth fourth the million.

by XX% handpieces, X% in driven with in our of driven decrease strong utilization-based a the increase in generators. QX OEM was Energy, coupled Advanced contributions in by from demand sales. Advanced Renuvion for in our U.S. offset sales were sales The U.S. XX% by sales slightly increase Energy a

America and growth by sales from international quarter. generators for markets, our utilization-based the Pacific being handpieces in driven largest Energy Asia contributors strong to existing Latin QX demand our growth distributors Our with international was the and during Advanced

our XX% Gross were realized manufacturing $X to or sales million, Moving million, million The Advanced of in $X.X profit higher down drivers the total efficiencies in primary the XXXX. as fourth well processes Energy the in percentage profit P&L. $X.X as the quarter of for approximately compared gross of quarter to a margin sales, increase year-over-year XXXX. as fourth of increased

which fourth of The XX.X%, last improvement Energy margin sales for the of prior period. year compared of in efficiencies quarter to Advanced offset Gross partially were Energy manufacturing a of total Advanced the higher of quarter sales, primary gross outside to this in percentage margin processes, the drivers sales by the was fourth our XXXX was XX.X% year. U.S. higher compared a the realized quarter mix XXXX as

the year-over-year cost the was the goods of points fees in of period, sold GPO basis goods of change in included Additionally, XXXX. in fourth cost not of year gross which XXX did approximately the quarter margin of result in sold impact prior

$X.X GAAP operating year-over-year change million, for was fourth costs; XX% for in XXXX $X.X and operating $X.X professional million $X.X compared in a XXXX. the general expenses of fourth The $X.X million, expenses; $XX.X by services; salaries increased million quarter in million to increase $X.X million to administrative quarter increase increase expenses. year-over-year or million related driven primarily and in expenses R&D in increase selling, and

GAAP by Total QX XXXX to related company’s which XXXX departure were CFO, operating former did expenses. million impacted $X.X costs expenses the offset GAAP severance and the operating impact partially of expenses QX not of

non-recurring these XX% Excluding quarter $X.X of year-over-year. million, the fourth expenses impact or expenses, increased operating

Loss of operations quarter diluted share, from or from $X.X for fourth compared was the XXXX. of XXXX million, per share fourth loss operations for for $X.X operating last $X.X loss $X million, quarter $X.XX to $X.XX net fourth loss compared a of the XXXX to Net diluted year. per quarter continuing million, from or operations million of continuing was

quarter adjusted loss to loss million, an EBITDA was adjusted $X.X last of year. compared XXXX $X.X million EBITDA Fourth

the $X severance or costs of of Excluding adjusted fourth the prior XXXX. year-over-year XX% the impact in in EBITDA the million, increased quarter non-recurring loss year period,

adjusted to we reminder, reconciliation detailed press loss GAAP a provided earnings As in from release our EBITDA this afternoon. a have net

segment, million, summary XXXX year growth revenue By fiscal XX% increased Turning our Advanced revenue sales year fiscal in year-over-year $X.X year-over-year or XXXX million, million XX% an year sales. of $X.X and an in total or of total brief million. $XX.X for to driven OEM XXXX fiscal $XX.X year-over-year of XX% increase in of a million, by to Energy increase was results, $XX.X or

revenue and Advanced an by or and sales, XX% year $X.X international XX% million growth million, increase Energy XXX% XXXX. XX% of fiscal year-over-year XXXX an year represented compared to sales in driven year-over-year of $XX.X XX% OEM in U.S. geography, XXXX, total of in in sales increase sales By in $X.X XX% sales. was of respectively, fiscal fiscal million, year of and or and

XX% year Gross year U.S. points fiscal for was sales fiscal XX.X%, compared and sales to and to XXX of increase XXXX in XX% compared of fiscal international represented and sales margin XX% XXXX year year-over-year. XX% fiscal in respectively, of XXXX. XX.X% an XXXX, basis in year

was year XX% loss The year or million, was million in by of XXXX. $XX $XX.X by profit increase partially loss operating year-over-year. million, increase in gross in to in Operating of fiscal $XX.X operating fiscal XXXX an driven for offset or million, change primarily an expenses XX% year-over-year, compared $X.X

Treasury $XX.X of million U.S. and the no of XXXX. XXXX, cash of short-term XX, and to as million investments, investments December of As short-term December had XX, and of equivalents in bills cash equivalents $XX.X compared cash $XX.X company million cash and

working XX, December XXXX, The compared $XX.X of of company XX, as million to had December $XX.X as XXXX. capital as million of

our Now of a review quarter first turning year for to fiscal XXXX. of guidance

a For XXXX, guidance three months XX% X% year-over-year. the revenue the revenue to of total of year-over-year. million, in $X Advanced $X.X and decrease to assumes revenue of total a of ending $X representing $X to year-over-year the to a X% in approximately representing decrease million March of representing of we million, revenue million range expect $X.X XX% range This million, of Energy XX OEM an decrease X% increase

to range compared year quarter GAAP In GAAP million $X.X to $X XXXX, $X.X million of fiscal profitability adjusted adjusted expect loss the $X.X $X.X to XXXX net terms XXXX. of of in loss of the of million, range in and QX fiscal loss million guidance in quarter to million, first $X.X of loss EBITDA our in compared million of first for we net EBITDA

reconciliation press adjusted GAAP a As our net in a afternoon. full EBITDA non-GAAP included reminder, from this to we’ve loss release earnings

XXXX outside the the Lastly, year-over-year. assumes decreased the guidance to revenue for customers X% XX% range total year-over-year, modeling the in to sales purposes, our X% down first range and of in quarter increased sales X% of up to U.S. of U.S. in

shares. of expense XXXX and in weighted compensation of outstanding diluted to depreciation of shares of QX expect QX gross approximately $X compared XXXX; $XXX,XXX; XX% XX XX%, approximately XX.X% average amortization We margins approximately and stock-based to million; million approximately

Charlie remarks. turn for Charlie? With that, back the call to I’ll closing

Charles Goodwin

on in we year. Thanks, Tara. In progress past the made XXXX, expect build to we this have

and strategy We demand invest international and to of strong to capitalize strategically will billion our on U.S. continue products our share commercial for X.X expand execute as the will cosmetic surgery our well. the market

for our In growth. a take to on initiatives these four each to you will the we addition that foundation four an and continue initiatives to in pursue strategic executing XXXX for to our commercial strategy, priorities long-term now minute enhance started provide review I’ll specific XXXX. in we update

our indications in to U.S. clinical for pursuit Building clinical we to two indications new on in IDE and are skin one, this dermal focused our for progress that us Renuvion the specific procedures. will sell targeted of year and of two conducting these studies XXXX, resurfacing on clinical target support laxity market procedures. pursuit the Number enable past

peer-reviewed poster medicine; surgery a book Open; meetings; The presented in of secure Reconstructive the year clinical safety and XXXX our and Global publication; efficacy Art publication a Plastic of second the important to a new Medical abstracts chapter, four including and demonstrating is evidence, our was and Contouring. peer-reviewed and clinical an Journal Surgery, Body The one Renuvion of for lasers evidence, the in expanding technology. at

and additional presentations our portfolio During clinical year. this expand evidence we XXXX, with publications of expect to

more least in at one submitted study expect XXXX. clinical and have already three publication for publication manuscripts for to We submit

enhance physician hosting is and our mentor current and excellent and of our our support support by cosmetic practice job our customers an customers. surgery physician did third team In XXXX, for materials and our The training marketing sales prospective selection surgeon and programs. marketing providing expanding in-office for of

continue In U.S. we this in in U.S. programs we and the plan select will expand well. physician the new markets to mentor XXXX, as to outside host effort

of has in in years conferences overall and Additionally, our Renuvion industry increased share plan trade presence and recent expand and we market shows at our to awareness XXXX.

to the will from podium amplify plans advocates surgery Importantly, on our market. further educational key and this these presentations our with cosmetic expanded opinion leaders programming events focus presence at in

four, saw second-half of lastly, during And The to we on capabilities improvement expect margin number improve our we and manufacturing and efficiencies. XXXX, this in to progress have front gross in made began we XXXX. itself see the continued improvements the evidence

is our margin contributing that initiative. a our this gross strategic are we our efforts important results, to While are multi-year already efficiencies manufacturing it pleased to improve understand is to that understandably

We future initiatives new updates years to come continued you in order progress. to forward the will our lean progress with on focus continue on in providing look drive implementing and to to

to we on by Finally, spread that customers, the and like on employees, today the and also of distributor known are partners monitoring focused evolving around and closely, situation the I are we This very is our would coronavirus share health the an COVID-XX. international our patients, of as the thoughts crisis world. safety caused

We of XXXX. U.S., XX customers have more sales a countries business, the global than representing in in XX% our with outside

Importantly, affected specifically the in commercial Europe approximately exposure outside APAC, of and to represented XX% our XXXX. regions our U.S., most sales the

the and The have to We below have QX trends and experienced adoption and these the last U.S., this notable over understandably a a adoption after quarter, start markets do into far not in expectations slowdown March, coming currently In trends have China. in sell week. slowed beginning come we in our solid utilization so in in year. utilization the

as story on normal for huge a fiscal as providing developing COVID-XX relates rapidly the XXXX to challenge the be call. QX represents year formal The guidance practice high-level would our of of uncertainty it financial and a

but anything, provide growth in quarter call our for we is strategy revisit earnings XXXX in XXXX and part formal our as of QX decided have normal, environment the our first to guidance we’ll Given expectations for May.

the As detailed compared of we expect afternoon, the in Advanced of sales in sales to in in to driven million first release be press sales. million by and million million quarter $X of approximately $X.X approximately million, the approximately range XXXX. first in OEM to range quarter XXXX revenue our this in $X.X total total Energy million By the segment, $X will $X.X $X

expected, in and sales driven in crisis. slower-than-anticipated not and as year-over-year The quarter in the entirely sales the U.S., the Advanced Energy demand. our of a year-over-year in result outside change change the it’s time, first U.S. in OEM at the this impacted The COVID weakness was COVID-related last by by year to is compared sales

Outside week, has as quarter, in after crisis to mentioned and the and In solid March the last the a the U.S., also. deteriorate. slowed the adoption in slowed over dramatically as trends particular, COVID-XX start in utilization to U.S., demand March, continues earlier, materially have

in how in We contact their customers are practice. U.S. uncertainty with managing to surgeons and world they in around key the the key are determine the

is business we our guidance the factored QX COVID-XX from today impact off to based in significant balance information for has have Our quarter. of the and best over the

points Finally, I want important to consideration. highlight for two

and energy to year, story first ability tailwinds lower guidance remain believe deliver heat We our the underlying is its growth Helium truly had our efficient growth coming to manner. controlled into the modality than quarter we material we tissue incredibly while First, in expected multi-year an Technology unique with Plasma the to intact. reflect believe expectations

gives the market. market performance just potential the this benefits confidence us surgeons, resolves of COVID-XX itself, think experience in And in global cosmetic Our we for surgery importantly, and patients well-positioned clinician XXXX the to enhanced to tap are the continue our once and This growth patient shareholders. begun to surgery our that situation cosmetic we conviction. elevate we

XXXX team those on Apyx sheet support, our XXXX customers, strong to and of incredibly for an million strategic at expect allow more for hard their everyone, in to work their in that Thanks the cash Medical. our years. interest we for for this initiatives our of have we will to, shareholders with to than a execute Second, $XX balance our on number call growth their end in us

the With questions. open that, call operator, let’s for now

Operator

Thank you. Please Matt our [Operator come with state question will Instructions] Craig-Hallum. first from your And Hewitt question.

Matthew Hewitt

Good partners, the them, to Any taking over and seeing weeks? bit provided of what from hearing they and what some seeing from last color patient you’re customers you just or and of a from impact one, I’m changed you for color you’re – be on questions. couple helpful? a Maybe COVID-XX. physician, thank your How of first the and our would you that But surgeon are standpoint? wondering, front a on talking afternoon, little that demand that additional are demand has the as

Charles Goodwin

over in Yes. time, all point Unfortunately, this the map. Matt, at it’s

a have end the Some practice out couple doctors today for until anything. not not they’re changing just a closed practice to them really And are to of closed couple going their we of their month, open the of – have found where least. them at

place. So obviously, but the is been, that hampered country-by-country, the all thing, in a Europe bit over state-by-state, recent has more it area-by-area, little it’s by really

Matthew Hewitt

And How Okay. now. my two right on I clinical working – then guess, you’re follow-up. trials

We’re there get be kind Thank and is disruption this meet to you to the Are completed? hearing clinical trial are that need others get from work patients seeing meet that? the you. processes. the some to – you or done, of trials you should able – those to Are may

Charles Goodwin

not a – point we’re working could that Yes. changed like time, we it. in anything XXXX fluid. could we’re potentially. else enrollment and in At I this, did December with just slowdown just change But with it’s everything But and there this tomorrow everything like have in start that. seeing else through we

Matthew Hewitt

you. Thank Understood.

Charles Goodwin

you. Thank

Operator

question next comes your from Our Please O’Brien Piper with question. state Jaffray. Matthew

Matthew O’Brien

for questions. Thanks the afternoon. Good taking

on Just to follow-up Math’s question.

$X million you’re far guiding you’re the for as QX, something goes million. kind to on quarter, track I mid-Xs, the $X.X at in do more for here revenue would as probably so of I provided now $X.X-ish you’re million, you guidance – the about think you midpoint, As to the think to million say, $X.X

to zero what about is And here almost COVID? think math what mean to close should – that we essentially if timeframe Does through can in in your gone April/May business we’re anywhere accurate, as the has that working March? that

Charles Goodwin

guidance first the confident we’re situation. fluid that so for obviously a it’s very gave – the we in Well, thing in QX is, and that is very

really forward, tough limited because first now. is, pretty we And predict not so we the May speak to April the to it’s to quarter that and It right going reason dried and up. can’t has

business countries, Our March. zero But haven’t In has decreased. not States. seen to some yet the went it’s significantly in that United we in

Matthew O’Brien

a Okay. question Tara. for And then maybe

on sales side Just of in spending things, force the obviously, you’re the place. going to keep

the going for but much with we You’re loss studies. to do continue spend about in these been think EBITDA surprisingly, QX, to higher side quarter had R&D on How we modeling. the – than not the is

for about think forward? but we capital rate do the spending then coming I know cash about side? points how do we the here on leverage issued how million going and need on you. think of Thank specifically, XXXX, out in you’ve And $XX in got additional more year, the last So your burn

Tara Semb

carry rate, we QX Well, I burn and quarters we’ll – cash the we far into as that far higher as you multi as OpEx. will know, as than have – confident definitely, generally mean, years. is that us other the feel

lot We increase of premium that so shows, an – trade million. insurance of a have showed renewals, which $X.X

what’s continue trials. with happening and spending obviously, discretionary ongoing to the – R&D We’re But we’ll monitor to make response basis on sales. spending adjustments situation we’ve to on in the clinical started an

Matthew O’Brien

Okay.

million follow-up this $XX in started right? something to year burn range million rate just So the the $XX burn there, just – seems but rates about,

Charles Goodwin

not a for paid had been always whole we’re We’re And first the we the – first higher. the to Tara events too, planning already as giving lot of on we the yes, to. quarter, year. go this, is And quarter is guidance remember that mentioned,

if obviously, they’re spending second the So there. the money and third quarter, now cancelled for in we’re not

can QX. of being through guidance giving it So but you we’re less, only think

Matthew O’Brien

That’s so much. Thanks very helpful.

Operator

Thank you.

next comes state Securities. your Dave Our Ciruli Please question. from question JMP with

David Ciruli

thanks. Great,

maybe and away? So in Or what at until but, not just if And wondering capital both? from I’d provide then little appreciate you I what about March? of possibly goes are guess comment won’t the components? it said two you’re on seeing this the you a we more then standpoint it that terms utilization, us you I if capital sell follow-up could color assuming zero, could give color those you some U.S., mean, the is I Or like on

Charles Goodwin

Yes. No, don’t think I so.

country back doing and certain and people fairly in still business – to standard countries, things business. are I think the of are certain and areas

I cases think if that in still a are evaluating thing like lockdown, that the in today that lot could we we have we here can’t affect did is, the have everybody of customers they still anything, total technology. where a sit people are we U.S. as China, today, do had doing and the

individual It’s or not on region. It’s country. it’s based So each in an there. the on the on nothing. all based situation It’s based what’s on going

get we that’s restaurants affects thing New Kansas, now. what nothing So they’re bars comes tough Topeka, York and City a different affected is right But up it York that there’s minute where New it’s City. and makes closing – then every in there that’s that

So it’s all over.

David Ciruli

sort happening. imagine for folks kind procedures, too of I your I then And actual in it’s are guess, maybe it like? they’re know just plastic I it happened? But look still you. patients, Thank elective What nature, if what generally of of have surgery exactly a kind what’s like – in early could so any you what to in actual thought of some of you your guess, sort thoughts But its the of not of good some seeing has impacted, anticipate patients, like folks. on terms the legacy on, going sounds accounts

Charles Goodwin

I the I be it. personally, and about XX little had done, do comments that. days the to think make know comes where Yes. home to But time brush perfect it’s to individual that to stay need I Again, to might I I have a patient. hard broad had up that if work to

it’s too United are think in I are States. I So mean, that canceling the dynamic to hospitals procedures that. happening do elective just right now all

in or procedures all surgery we’re – most that, their because in Fortunately, done of of part almost office our doctor’s are not center. the

working, seek So they the it’s at want point going area, up whether individual then that they’re it’s that keep them to to to to in patients whether treatment time. in up and a

David Ciruli

Thank you.

Charles Goodwin

Yep.

Operator

[Operator Thank question from Bauser comes Please Kyle next Dougherty. Our with Instructions] you. your state question.

Kyle Bauser

and Charlie questions. for good the taking Hi, Tara, Thanks evening.

Charles Goodwin

Kyle. Hi,

Kyle Bauser

trial. start I’ll Maybe on the

progressing the able How’s patients one-month might I So question FDA kind the of to in then in data you be phase? that that the, have the resurfacing. same safety how follow-up laxity submitted for trial first many enrollment? think, skin dermal for trial? When have terms And to enrolled of

Charles Goodwin

get of not kind we’re to practice from that. when forward is a we’ll we with the give We’ll with know FDA, did last Kyle, broader And you what let like of move to the back that, get when give let and get updates on we know time into we’ll scale enrollment when the we going something Yes. finished. you things.

thing do The everybody know you is, are needs major focus important a incredibly moving to they’re that us obviously, to need these to know that and us, and for forward.

of we not are anyway. to we are so keep exactly these both of we’re doing forward. And but until start studies we give we not XXXX to stated – events where and before, And move until XXXX will just events updates the things going are believe that, that we as

Kyle Bauser

Okay.

you of trial? safe the to it is release, II move to skin a into you once press gives FDA laxity the do say Phase So nod the

Charles Goodwin

Correct.

Kyle Bauser

line. From in more then a our allowed bullet has and cleared smaller diameter And and be it’s checks, new back tip. with the procedures the October to that big actually shaped on around aggressive, a quite enhancement for neck been operators particularly in was Okay. and bit handpiece jaw just a that

actually hearing maybe Can won’t drive or could field? and in to you something nice you’re drive kind are what think utilization, this that you these is nice speak just have are features the that of if to volumes? And necessarily about

Charles Goodwin

No, problem that always first device And And it the the like, and to very to do certain I other has with it thing that do neck specifically Kyle, was its the did surgeons you But good. and limited do we your expect drive about things. utilization. yes, homework, talk face. is size you the

bit and designed little handpieces and these a they their of talked about for surgeons other were the were all And surgical And so, devices. surgeons had thing is, cosmetic input. we plastic with headwind a the of always great that being laparoscopic

actually it. will run. There’s think that. help will help the question utilization really us tool we that we gave so no over do And them it about a long And drive

I So with XXX% statement. agree that –

Kyle Bauser

All That’s great. Thanks questions. taking the for right.

Charles Goodwin

Kyle. Thanks,

Operator

our Thank all Thank you. you conference does That conclude your participation. for today. for

Apyx Medical (APYX) 16 Mar 202019 Q4 Earnings call transcript