APYX - Earnings call transcript Q2 2020 | Apyx Medical Corporation

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Operator

Good morning, ladies and gentlemen, and welcome to the Second Quarter Fiscal-Year 2020 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 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 the Form 10-K filed with 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 also to financial will calculated are measures principles accounting references generally with accordance accepted include or call that not This in GAAP. as We generally measures. refer non-GAAP financial to these the measures non-GAAP GAAP calculated measures our most press in and are in those to of financial of the comparable Reconciliations on with presented accordance available portion Investor earnings release the Relations website. turn I would now conference Mr. like to the to over Charlie Goodwin, Medical's and Officer. Chief Executive Apyx President [ph] Please go sir. ahead,

Charlie Goodwin

Thanks, XXXX. Tara Officer. our earnings our I Chief Semb, quarter am operator. joined call everyone, of by second on to morning call Financial for Welcome, the the this

quick of you the the results impact revenue agenda today's provide of the summary call. for COVID-XX with on me second with a I'll the review including for quarter begin Let results. our our pandemic of second quarter, a

this the will Following and a made growth our Tara, provide have term update you an provide our are we progress operational with on our longer you recent detailed results. initiatives as on review part highlights we strategy. pursuing quarter of I with of second then four discussion, will financial

XXXX decreased million. year-over-year review our open the international reported a Tara’s of geographic XXXX, I'll with while million to for quarter year-over-year. some we second decrease Following total total the second decreased that, From long XX% before get sales sales revenue conclude thoughts $X.X sharing started year-over-year standpoint, call on by revenue and $X.X questions. of remarks, our total outlook million, our the near US $X.X results. of for XX% term our term for let's to of XX% With quarter of We a a representing

In our business our each to to The decreased performance XX% increased year-over-year OEM revenue by million. year-over-year of to orders. XXXX in of growth customers, driven business higher sales business segments. of $X.X OEM of OEM second to quarter XX% timing in Advanced to was our business compared sales Energy sales the $X.X terms due legacy our million. In In our sales

the in significantly was anticipated, impacted Energy revenue slow the the to Advanced pandemic our spread. and taken As performance actions business COVID by its

our performed As Plasma with procedures earnings Technology discussed vast elective. of on first the our majority Helium quarter are call,

world requiring During which slower to businesses government close quarter to the non-essential of adoption in continue our and utilization. by customers postponed second the resulted temporarily, be elective cosmetic and actions many affected surgery around procedures to be

Specifically, the XX% XX% XX% year-over-year. decline year-over-year, of Advanced decline Energy generator in was revenue in by a decline in QX handpiece a sales total and revenue in driven

of throughout estimate temporary and that restrictions. of such performed all After local our difficult offices a and were April, virtually outpatient May. offices are as centers, we state a procedures Renuvion of the started in doctor’s through as largest QX as each progressed US, COVID sales all Advanced the In pleased markets. decreasing US Energy improving XX% undoubtedly OUS from While trends in we to quarter. was saw April, driven where month in in impact the of facilities, result and closed in month both We customers and surgery April, trends by in we declines nearly signs see the challenging, were the total month year-over-year, with recovery

across the our see surgeon on US US. in restrictions reopen, we various began regions lifted to encouraged as non-essential procedures and were many Specifically be in of customers May, to elective businesses

May, of that end roughly the customers US our XX% of we estimate of had As reopened.

in We also March handpieces virtual saw while reported June, canceled implementation encouraged were April, steadily pipelines or offices and many of based-demand May our utilization our on consultations, As and were for US procedures follow. practices increased successful fueled we're Renuvion to focused and late reopened, strong closed. customers postponed building by procedure particularly see rescheduling activity from

year-over-year increased in of United especially demand is of sold appreciate procedure clearest cosmetic a and system offers exposure, handpieces of nearly compelling In the into utilization their example, customers on of declined technologies market have those June. our handpiece surgery for year-over-year. States return Renuvion device the continues clinical Renuvion continued strong our to one rarely efficacy incorporated the with Specifically, outcomes is the value than most Instead, the handpieces one that month to elective medical and number many manufacturers, that and XX% investment not X% surgery The that challenging aesthetic cosmetic in practices. based-demand Renuvion for of practice, used. patient quarters the the less the handpieces demand adopted our that the for are Renuvion system examples the strong the demonstrate

the we compared US a as than and to varied June a with improvement outside related modest showing of did pronounced Energy markets result to experienced as the overall, business US COVID is the the Unfortunately, May month procedures. the pace in COVID of elective on a business business primary to It a second Turning United quarter States. April brief relative the on our challenging what outside trends of see business was more depending has restrictions Advanced discussion May. OUS We related in very the very recovery business hard characterize was better trends improved in quarter. region. improvement on April during the the during our our than disruption

the headwinds in some While made challenging quarter. COVID the helped QX, was initiatives our the we extremely one OUS the progress towards of us in offset growth strategic related QX environment of in

a discuss quarter offset product given decrease new start two the in sale as fact for COVID-XX. the growth in business, international US, the of five were with environment our a business by improvement we handpiece challenging we sales offset half equipment Energy business, QX products orders sales Simply the total recently we global our XX% new sales only XX% of while a stated, Advanced declining in the April for XX% sales authorizing trends, Energy the shipped minute, the Australia, were of We in latter for of Brazil US year-over-year. they encouraged second in the in the partially down challenging saw material capital of were was quarter, and we In our a saw global June, Australia. than anticipated offset secured month partially our We particularly the and stronger Advanced in on Brazil note which quarter on much initial such Plasma Helium - quarter of countries, to Outside and difficult qX to we Advanced the Technology detail Energy initial the the helped to represented a more registrations our some certainly it happy of countries. began. the QX. June. were these see in was but were year-over-year where orders will pleased COVID impact challenging, US, I very to As by ended that

our sales market very XX% However, for US a trends declined year-over-year, both and June demand generator that Advanced total early of in markets in Energy adoption the of is our and the for reflect a month recovery. in stages OUS still primary

to as progress US during the of discussion our for to of cosmetic growth a that a procedures. specific the indications the Despite enable with initiative Medical IDE targeted support In review reminder, market take with and pursue the Starting Renuvion quarter. progress for position to are Apyx pursuit to in four Turning experienced market. COVID and each. our Skin us Procedures. initiatives two respect second disruption respect new with moment indications progress recent Dermal related the are use a our Resurfacing for make new continue long in during clinical we conducting surgery presuming strategic Laxity to designed first term studies to we to second I'll will the quarter, clinical sell to we to operational our

were Technology both in clinical are study, Skin of focused delay, Despite on has working across in clinical IDE which to Laxity the IDE one created both our on now the data. expanding studies Up discussed on countries. impacted beginning was our to been enrollment to US of point, by our due in had studies. the QX driven by disruption both As lifted were March. we our Plasma our clinical things significantly IDE from efforts restrictions call, in activity new COVID-XX Outside with obtaining Phase is result month pleased that help trial studies was progressing, disruption. impacts in footprint COVID in X Resurfacing regulatory closely paused and a Dermal response, investigators the but our the for procedures safety was Helium elective focused mitigate resume the progressing In our team commercial Once disruption. strategy both this as focused clinical regulatory of our clearance our of on on COVID the US, related in May, to study,

the are countries we product focused part in registrations strategy, this of owning As we the that on enter.

progress quarter, and we regulatory during Australia, five on front Our announced the on Israel, new were result approval team that continued this make to Thailand. market products second to countries, in as to XXnd, sell received June excited we our and Brazil, a Taiwan, important

of to number cosmetic in Brazil to second the number growth the note surgeons. important profile, total and represents expect procedures we While that its the both our these of addition terms surgery of world, in largest the countries market each performed benefit of term longer of

the and discussing of technology. Australia IDE journal, to our to During our initial supporting we expand Dermal half commercial Resurfacing the initial our In we Renuvion ship evidence to our on initiative, during of & to the our Surgery first clinical strategic and second of in orders with efforts manuscript peer-reviewed results the published in remaining three In second connection countries Brazil, the the portfolio quarter, year. US April, we Medicine. shipped second the of in Lasers we our orders expect study distributors continued a use

this and third of multiple In expect during to and clinical continues publication we our the half to support And second progress With for cosmetic additional respect customers. strategic complete our for publication, initiative, to surgery addition practice manuscripts manuscripts. XXXX. to on make physician team our enhancing submit

field we the of Outside These the our both educational four training and In technology. our XXX international customers leading learning hosted hosted that experience also US, and Renuvion world. virtual and where and physician the events approach factors webinars, marketing drew the about events, clinical close included physician return on a their investment. in to pricing adopt for prospects strategies decision on with with calls and educational drove thoughts including their sales teams with interested the customers continuing discussed attendees. topics, virtually their team During sessions They distributors. education shifted current quarter, of our and events physician conducted to the our Renuvion, to Renuvion variety hosting current technology, which our US, programming the marketing international the around technology, second their prospective J-Plasma for and began groups on of benefit

fourth briefly let Lastly, manufacturing me discuss capabilities our improving our and strategic efficiencies. initiative,

and initiatives work Our to coming progress area implement our for and us realize lean focus continues identify the continued important of over remains an organization, improvements new helping years. to

to As been respect order improvement a manufacturing reminder, to this per areas implement of focus reduce has our Energy new initiative the unit process of products. cost our with one Advanced to in

form to We see margins. early these the handpiece of improving have of begun evidence activities in

this Given handpiece. towards our as with handpiece move initiative, we forward our continue Renuvion the to progress primary APR

Tara pleased excellent and very COVID company's second under profile. that, pandemic, growth operational decision QX, term the example made considerable writedown I earnings going are this Stepping job of forward. am done morning. our clear our let generation handpiece turn our this term profitability inventory of financial comments related financial term and the impacts progress APR quarter near becomes P&L longer a sales our resulted strategic While teams as with press and to is me This call in these results contributions of is challenging long over our Tara? to handpiece profitability this release the larger the enhancing circumstances. handpiece performance in towards the to by how initiatives and we in back, quarter, despite a portion our total making impact of a expect With our the discuss we to our prior

Tara Semb

detail. my or year. will the year-over-year second to results for financial in Charlie. decreased of of of performance for XXXX begin review profit margin XX.X% $X.X the compared our $X.X last Gross quarter to Gross million. I quarter P&L, as XXXX the million second quarter profit Charlie Thanks, across rest XX.X% XX% was our the covered of second revenue

from Our earlier GAAP inventory in increased newer quarter newest the designs, benefited handpiece due second XXXX gross impacted profit our product forecasted of in - and than international of of We during period. by the the writedowns availability registrations product reassessed markets. expected to our was certain mix, COVID-XX, completion

in carrying was to second result, value cease also reduced during of to as were $X.X of approximately increase quarter it resulted of further lower these certain in a written-off, some and production As goods were of cost million models. an products components a determined This GAAP the XXXX.

initiatives. year-over-year quarter and expenses of $X.X X% costs, related the was expenses. revenue by million, mix, quarter and by and selling, three partially cost year-over-year XXXX mix inventory and gross our in Advanced increase our The second profit to the our decrease a to ended general goods of June segment, salaries $X.X million to both and OEM a in in second by for $X.X driven decrease Excluding million revenue three our expenses million mix million Energy between margins the Advanced writedowns, Operating $X.X continued product increase segments, year-over-year expenses, decreased operating driven and improved in was segments, the XXXX. a product compared for result Energy related of or margin offset geographical in the manufacturing a XX, development months administrative in efficiency for $X.X change in within million research as $X.X decrease of XXXX

initiatives Importantly, our COVID-XX to reflects and in the our impact on reduce financial decrease the discretionary condition. operating of respond our and expenses control to costs spending

corona quarter XX% our of of benefited CARES was operating environment. proactive the of XXXX US tax control from second Specifically, the the decreased in operating compared million quarter relief as efforts $X.X $X.X provide by the quarter in benefit the expense expenses XXXX. in challenging income which result GAAP $X.X to to operating from from of related the XXXX, Act, was more of the operations Income last XXXX a million, tax our compared was pandemic. for year. to loss million, costs second quarter Loss virus to quarter-over-quarter, of the benefit a to $XX,XXX government second tax second we enacted In of

NOL, second income our on which $X.X recognized discussed million a receive tax carryback cash provision, As net QX end tax We the includes approximately of an was or by loss per loss XXXX. loss of approximately per second XXXX, the of or refund a benefit of in million $X.X act million quarter $X.X CARES Net our quarter or of $X.XX the reduced GAAP effective $X.XX compared tax the share quarter share, the call, from of million expect to operating a XXXX XXXX. for which net to rate. we of for second $X.X

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

Excluding adjusted period, increase writedowns XX% over in year-over-year. compared to only loss related to total in inventory revenue goods of in year-over-year our XX% a – increased cost EBITDA the the decrease year

XX% our quarter-over-quarter, QX company's Our environment. decreased loss to EBITDA which lower operating adjusted efforts challenging the during represents proactive the OpEx

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

the $XX.X XXXX, capital $XX.X as had cash as XXXX. XXXX, June million to million The had equivalents December and to of of of compared million compared December cash XX, June company of company XX, XXXX. as cash equivalents $XX.X of XX, XX, $XX.X working As of million cash and of

financial guidance the Lastly, uncertainties as call. in pandemic, on full posed our morning, release by ongoing COVID-XX earnings year be global the mentioned not the providing will press XXXX and company challenges given today's this

back time conference more the of November, call our Assuming turn time. prevails closing plan to third provide that, business a for I'll expectations remarks. we at in With that normalized at results to environment updated Charlie Charlie? the call quarter

Charlie Goodwin

Tara. Thanks,

operating highly timing uncertain. the returning to mentioned, remains Tara normalized environment of As

to solicit of the schedule in saw July caused backlog By adding extending perform impacts July as second pandemic. the accounts our accommodate order determine from where in accommodate up days customers office to we accounts, in were April, order and late feedback to to have during extent, feedback month, customers the uncertainty, of perform the our from Interestingly, strong customers very existing continued in this were our cases COVID pipeline that these of they that in of cases. all their of consultations the business end a virtually Accounts procedures. reported that all that July rescheduled received very the their practice hours to the in more US The a in to this pandemic. June. was additional indicated their busy of and to the backlog free office to in mentioned fueled trends have from open some monitor trends some working and clinician the cases our busy quarter or time US, by ongoing We customers promising they for the strong we procedures. and March of continue by Given nearly were market

in country hotspots, continue While to cosmetic customers handpieces Renuvion some COVID volumes have in in procedure from areas see been market surgery for July. the of the US challenged that are strong overall, our demand we

July, we in the saw On adoption front US. equipment signs improving in some initial generator capital of the

However, purchasing pockets regions. overall, strength US Outside stages in the of the limited uncertain. and July, timing and early remains demand, the improvements we in the of relative equipment recovery recovery handpiece some in equipment cadence saw capital remains some capital the the demand in and and in

on global stages faring focus interest recovery the how high level QX, of investment trends that our the the to lag the disclosures. behind the commentary the purchasing would we in in equipment our quarterly also overall we demand year-over-year, include in the of Energy month the the environment in of the the primary and business continues reporting our However, in that current in early we and are in To end, have early growth in July of transparency, remains handpieces capital for the from negative appreciate from for trends providing markets outside sales In very understanding We community pandemic. increased of to strong by XX% US, are companies the addition in recovery. stages growth US. on the seen first are Advanced seen the otherwise driven that that we not quarter US details the

compared Advanced We June. in growth sales trends our to reflect obviously year-over-year in that July, declines pleased are Energy

softer However, highlight performance from this year we growth comparison. would a growth benefit that prior

year-over-year this to XXXX. as ongoing and weather the of timing of strategy respect been as to purchasing enough international environment, business With capitalized the trends forward. generators growth leading to a highly At a related operating positioned for pandemic we normalized more more as the the driven over likely for which half more still return to will growth remains recovery in quarter. a it our of the trends backlog thus a second half of growth progresses. uncertain, with by we to the uncertain are are our see XXXX year-over-year importantly, uncertain, our normalized the through and has of business, year true as hoping a by returning Advanced is while of discussed, see highly Advanced our effects this in outlook fourth progress well that to how More point, former, improve reflection near we trends is recovery XXXX, environment returning in Energy return such much we we believe sales remains improve execute and sales well the indicator Ultimately, are versus begin going to in early remain continued to a the of cautiously term improvement trends optimistic to of Energy business to we second it hopes the we key end that

continue normalized to contributor projects given business hiring half proactive we customers environment. benefit operating areas with been discretionary of in The they invest elements second same in expected our performance to the was studies when existing our time, reducing team, environment sales the balance results more the investment maintain remains is our and in until using growth financial certain continued implementing expense our during quarter, a size the strong key of our under profile At necessary. engaging our strategy. can and which that of resulting clinical a have material second pursued we focused to represent our costs condition, on and of by by well. as in R&D and the sheet controlling have delaying efficiently freezes be potential virtual We Most year to our spending, both importantly, means

long market in We surgery also the position to I initiatives facilitating term which our drive earlier, discussed four the invest our in continue strategic broad technology. will that of us adoption based by growth to cosmetic

we to challenges support our half continues XXXX, strategy our pandemic. despite demonstrate term the customers organization second to enter ongoing our COVID As the their and of of execute ability long

to prior US, remain $X.X Apyx Going intently forward, as to recently to our the market we believe years continue estimated objectives, record addressable With an of growth will longer these to in position billion addressable opportunities we we focused growth. opportunity sustained market and term on US track for we Medical return the many come. alone, expanded outside drive to uniquely positioned are

a proud post and all and to the to a With those hard makes the forward Medical. our also to Technology we open to elevate of to market operator, special global transformational shareholders on patients and benefit surgeons, support, their member of recovery takes Plasma team. market I'd for commitment call In and Helium Apyx the interest to offer closing, me for questions. and COVID their look to like our now in our which for let's their thank continued flexibility be expand the Apyx the I'd thanks for of our surgery work, this success, cosmetic customers like call for that our As with our shareholders. share continuing shape, employees distributors,

Operator

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

Matt Hewitt

taking questions. for thank and morning, the Good you

Charlie Goodwin

morning, Good Matt.

Matt Hewitt

July, out pretty through to there are cancelled have demand? But probably at was how seeing rapid any recovery, First to is not been of versus into way that. way there it's know that where far backlog new any working I that and you and much May, of procedures parse one, when April and you worth getting June - too is look in

Charlie Goodwin

Yeah, Matt.

and closed. And med You customers very practices particularly virtually the know, one nearly And, to the we back up our and consultations We were open as all encouraged the and in of in utilization most in of in those And, doing were was July customers the And year-over-year. activity to quarters to were still late nearly recovery you were handpiece as been were we of of X% obviously trends in order. all XX% have July. in see the started April, getting strong. like May, demand June their see just challenging June customers strong tech and in the June year-over-year. June, got we the month down history, into mentioned, growth virtual know, offices

continue this driven but the great that third answer backlog. about that we're And into as point and or got forward we've why uncertainty in see And busy, is real need just you don't unsure in so, there's continue see if time, thing a very the point we The at to great I busy, not. know that for are extremely here just just there. time will quarter, go this we this continue or by to at to whether they're that is we little a that's demand and our customers

Matt Hewitt

That's I a follow-up all understand. question. maybe right. And

through and do back think just come be trigger those Is could and adopt little customers from you a dollars things buying just bit in for to What perspective a capital they've the equipment? it backlog maybe sense there to both stay will earlier? completely are simple there that something their marketing and when technology equipment, start purchasing they the understandable. you them Regarding some feel internationally obviously, going there's open? domestically that help delays comfortable gotten capital do Or the to in is

Charlie Goodwin

Yeah.

with simple it's the the lot we to frankly, going is now just as I And them. think for in think But right issue programs they what virus them happen quite back think a of for year? is that. obviously half look, it bigger of is So help have - to do the I the as them

do them they confidence if know, some we form think in got a is what make their to our about the that affects You obviously, lots or each great in not. capital programs that virus we've year, minds, adopt would second have to like going but can in investment because way, technology of they a of the person's whether their I going of half individual, help the business to they're necessary,

Matt Hewitt

Got it. Thank you.

Charlie Goodwin

you. Thank

Operator

The of question Jaffray. your from proceed is next with Piper Please O'Brien Matthew question.

Matthew O'Brien

Morning, and good Chad. Thanks questions. for morning, Charlie the Tara. Thanks taking for –

You hotspots. know, these are - potential your some outbreaks right I country. the impact of some state. mean, we're I'm these of seeing a how any little on of just more customers bit maybe to that curious around adjusting risk it's the now mitigate of a very pretty big

know, that then you you doing virtual of we new go another, And on were big events customers? how many round about, XXX versus this don't individuals that to existing talked saw, shutdowns. through they you make what those are of sure So that those

Charlie Goodwin

advantage done, a doctor's the big done that Yeah, procedures are setting these small they so for typically office where they in do in or the hotspots, that center look, have own. is surgery are the we

in for patients the United that. States aren't into be a so, go And anyway the hospital fortunately having us, subject to and to

out the of clinician, good the that the environment kind car know, state, appropriately, all one guidelines, the patients whether have they so in, until their depends of next in that they it on you wait news totally clinicians our comes the the And is stuff. space can for and control them

little we vast what So understand how of if keep over heard not themselves But from have all bit board. contrary that. all it's obviously haven't they are the they job, their control that the patients them. I the great a a over safe. doing for good news of anything is is, the And majority

is they're and more that that to institutions in control and stuff. where of people all that an the of and kind are bigger that they a is situations that themselves of do lot advantage that So there's can having rely on

encouraging So from that part our is side.

how many them and of them are As new would clinicians. versus new brand I or of say the not, XXX vast new clinicians prospects far as majority the are

For it, owns of the not there having that customer listen we've to events from there's a been type already types events. of to these get a the that technology they're to to that going on have lot

that And the be vast for were the most speaking part, majority so XXX to of clinicians. there, new would the them we

Matthew O'Brien

the Okay. talked large countries, and new helpful. That's about five these Australia Brazil follow-up, obviously, really opportunities. as then And are you

is now. think generally I Brazil soft right

you recurring how contributors those about revenue new opportunities But meaningful know, they countries, you you can be from then you five big here from how some a know, a, if And add revenue I know five be? sum the you stock know, can - when those would of sales perspective, of more, sales talk and recurring QX. So some perspective? in can all here there more to one-time contributors are in had you up

Charlie Goodwin

in in until to that Well, I world, are before, mentioned second is, of the them to is basically not saying those what's look, be mentioned, Brazil really year. cosmetic happening both initial recurring markets as just The in are order that the with market go to we're respect the areas? virus second and happening But during in largest with different contributors Australia from basis. going surgery different And virus countries a We those probably ship on kick they're start regular each to things determine expect so in in reoccurring really we ship forward. revenues will as happening the that The the do of respect the so of real the we virus areas. the question unfortunately and those half big of and when and and as become to question that three physicians. is a revenue QX, remaining Brazil that terms what's all of did I those lot each XXXX, is in to with perspective, procedures, one in of

Matthew O'Brien

Thank you Okay, so that's helpful. much.

Charlie Goodwin

you. Thank

Operator

proceed The Please from JMP with of question your next Dave is Securities. Turkaly question.

Dave Turkaly

- the being about Thanks. their Charlie, and about bit we reopened. practices spoke a doctors

So all color. thanks that for

of patients, mindset. actual customers the about I'd your on curious sort to current Just get or thoughts their love

I'm base office to guess get hearing But maybe and willing or improving, do about that you procedures. hold? these from a and to expect we that you're just mentioned the I to maybe being you talked curious having even know, or patient Are done. procedure outpatient mostly people there. You out seeing what some from, are as things downtime

Charlie Goodwin

In accounts. seen. by they in month our Yeah, busy. they've it were All that customers July ever said of the all was the July some busiest regards

as far think think stages right expect early I demand I do and uncertain. the tough in hold? now. And to it's As it remains it's I

of an optimistic that that hope by here about article right and - grow know growth quarter-over-quarter for to the quarter. is that know, forward. were as why excited knows happens able the like cosmetic July but to don't we that remarks sit you that in there we that the and question to so talked there published about - knows We just a extremely answer business bunch that was said, we obviously pleased in just But going fourth in XX% do Barron's and looks the cautiously crazy the our just And there's that. in factors what year back but Who lasts? a big it and the I demand going is, to whole what extremely what today, it's of remains now, happens in I have we're is surgery uncertain. who year-over-year, half the be

Dave Turkaly

talked terms don't the you've Got about Advanced specifically, there? in it. are there a I've asked And know for Energy of but the you seeking this in patient median that your therapy I that if is past, age

Charlie Goodwin

Well, - done our ages age, if from from XXs. customers there's I we've median to have XXs done ages a but know don't

median And XX fits XX so, skin that for probably in is age it spot a if the sweet probably tightening, to to pick group will. probably age, going you you're if

Dave Turkaly

like Got if it. maybe maybe that care And just sales sales and quickly, I steady. know, mentioned either, team details the wondered just of share size domestically? to was the any you held force, you even

Charlie Goodwin

the size of year. Yeah, from hasn't changed the beginning the

the my you head. haven't some know number we're I number, changes we in don't is on size. what we since exact have, direct top how think want off give the end the of my don't – We it the the of exact know I at even and made haven't and we're our I don't many I but because we haven't the any last have right head honestly to quite And any made of changed year, XX of I number people, top -

Dave Turkaly

that. for thank fine. thanks you But it's And for No, all the detail.

Charlie Goodwin

bet. You you. Thank

Operator

The next question, is Bauser with from Kyle question of your Securities. Colliers Please proceed

Kyle Bauser

skin trial. the Maybe I'll laxity and Charlie, with Hey, taking start for questions. thanks Tara, the off

patients status kind the all proceed evaluated patients you month just about you evaluated you for up. phase And phase the can two this patients, are? we is first safety, think of as that then phases, the for first XX subsequent XX and one XX the initial mentioned, Can of and for trial XX follow talk I where with efficacy. So of with

Charlie Goodwin

Yeah.

So next give approval milestone the goodness and to two give that by able towards the specific that received as that are phase the to mentioned, we're is would study, sites that. And activity But that of updates our next running of of going and all of begin two phase was we impacted But look, Therefore working we're particular, all know, goal in are. back being study. to That's we're you to where up then, COVID. we proceed progress the not we have of thank on I that that until phase study. that study. towards out after making

Kyle Bauser

right equipment seem a these. just customers, capital MedShift now, or up were But right don't in pretty model have maybe Thanks. access the And equipment minimal given since provides the subscription buy aren't to value this right the would, sales practices proposition more do for to equipment can interesting that capital it to be monthly your and since shutdown. to helpful. partner just pretty the Does early now. now money Practices to know seem compelling capital they that's putting I too Okay, it therefore, get is tell? QX,

Charlie Goodwin

a is always us. it for very that And Yeah, they're good partner MedShift model, that technology. offered adopt that. we to way our a it's And no. is customers have Look, - good it very is a another for way

we I programs, have program. capital before, the And have purchases, leasing so MedShift we we have as outright mentioned

and know, definitely the approach to business model. whatever on adopt into to make practice them we capital tailor an have so try practice the fits easy you their as And as, to it best the

And investment. - to know, thing that about why on half so they're stay don't still reason partner that I it's that's that has return to MedShift you good of think for and wonderful the biggest a control have thing customers as we're The why a really because get have have open biggest going obviously And the and we it and virus. know, the confidence to to still though, there yes, of be optimistic second is, the just a have it the able approach. you is cautiously still is

Kyle Bauser

thanks appreciate in Okay, and got favorable it. Got taking for questions it. the the color Well, trends July. on

Charlie Goodwin

Thanks, Kyle.

Operator

[Operator next Russell Cleveland of proceed question. Renn with Instructions] question Capital. your Our Please comes from

Russell Cleveland

our showing a in Charles. cash are we already will And cash and Hello, $X.X add cash? that million actually Or be the refund, question that is our we on will getting to balances?

Charlie Goodwin

no. ahead, Go Yeah, Tara.

Tara Semb

its income be is refund, to loss paid - X.X carrying XXXX actual we back when taxes. the approximately Yeah, that's we'll because an

Russell Cleveland

this $X.X us. year, going to big more to get of a we're is help course which So million

Tara Semb

Correct.

Okay, question…

Charlie Goodwin

sorry chunk Russell, back will get then will interrupt. Not of year our are, this back hold on another too. million one to I'm but get the losses it second, only what get depending year, this we year, following on we'll we $X.X for

Russell Cleveland

Okay.

as is drain cash point. That's think. as not bad we So the

Charlie Goodwin

Correct.

Russell Cleveland

know, question cosmetic country, surprised five number is, XX? were other countries are, Brazil was you you My in many what top say or Do the two the that that? know, other top

Charlie Goodwin

biggest not Korea. and in have that now do are right Yeah, ones the registration two China we South

Russell Cleveland

the They're top five. in

Charlie Goodwin

in don't have those. in of one both They're the are. They top either business five. we And

registered Our there aren't products yet.

Russell Cleveland

after markets a we it regulatory Are those or going problem? right. is All

Charlie Goodwin

strategies both for those yes, markets have we No, of

Russell Cleveland

right. All

Okay, Thanks all. that's so much.

Charlie Goodwin

Russell. Thanks,

Operator

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

Apyx Medical (APYX) 10 Aug 202020 Q2 Earnings call transcript