APYX - Earnings call transcript Q4 2020 | Apyx Medical Corporation

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Operator

Good morning, ladies and gentlemen, and welcome to the Fourth Quarter and 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 call is being recorded and that the recording will be available on the company's website for replay shortly.

Before we begin, I'd 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 form 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 also to certain will not that financial accounting accepted references with accordance in generally include principles call measures are This calculated or GAAP. these non-GAAP financial to measures. refer generally We in measures the those financial press our GAAP measures calculated comparable and non-GAAP most with of presented of the Reconciliations are on the available earnings release portion Investor accordance in to Relations website. turn I would now call Mr. like to the to over Charlie Goodwin, Medical's and Chief Executive Apyx President Officer. go Please sir. ahead,

Charlie Goodwin

Financial fourth call. Tara Thanks, Kevin. the Semb. morning on our full Chief year this quarter I'm to Officer, joined XXXX earnings Welcome, call everyone, our and by

quick today's results. with I'll strong Let call. with of you revenue fourth a quarter me provide agenda for review our a begin

our progress review this our pursuing financial I the Following during some strategy. and the this overview update results and release XXXX longer-term conclude we our guidance, will long-term we detailed near-term enter on areas our quarter as then introduced of an our additional discussion, outlook Tara on on our initiatives with press growth of thoughts I will provide provide which made with we part in fourth you financial an morning. focus XXXX. of X a we of operational will quarter as are

of of for We review total quarter extremely for report the our then pleased will XXXX, fourth that, million an year-over-year. get results. the of with call open With were $XX.X revenue of We let's started QX XX% revenue questions. increase a to

XX% at continued provided our above in came the quarter. range the end Recall the geographic related the fourth greatly our of total expectations exceeded to time $X.X in results given that of U.S. sales and COVID primary preliminary delivered fourth expected XXXX By January high revenue the million, the year-over-year quarter, while quarter sales around for total XX% results in especially of challenges increased for slightly to increased million, XX% $X.X We to to Energy Our to our the OEM decrease region, we And Advanced segment, earnings by the we our world. international business revenue call, increased our total markets total X% this pleased increased quarter. in year-over-year QX year-over-year sales very we million. fourth year-over-year million. the to and year-over-year revenue were with $X.X our $X.X sales

both by demand, sales which strong global the Our that impressive sales and primarily growth in XX% Advanced driven strong important It's coupled largely we of by saw was handpieces, year-over-year grew XX% of XX% our our with Energy a driven sales note year-over-year segment to handpieces internationally. was performance increase of generators. our in year-over-year domestically

Energy our more at year-over-year. in performance we Advanced sales Looking the XX% closely, U.S., increased sales saw handpiece

QX, volumes sales handpiece the of through demand. during many and from continue fourth U.S. increased strong reported were surgeon existing primarily open quarter, our utilization-based throughout quarter. Our U.S. were procedure active driven their underlying case Nearly see all our demand throughout working the to reflecting customers customers. After they strong existing patient backlogs by

the improved environment the new challenging. equipment While customers our U.S. capital during prospective fourth access the to in quarter, remain

in the sales the driver in U.S., we handpieces generators, business during pleased of Advanced which basis international QX. year-over-year As that fourth largest respectively, we in XX% report and both our sales on to in growth I'm increased of saw quarter. a international Energy and fourth the that XX%, a the generator year-over-year the single-digits sales result, upside high were U.S. saw declined Outside quarter.

given the Brazil. from orders our distributor by fueled growth handpiece environment, surprisingly part Our was in strong in

increased XX% that excluding our even handpiece sales demand, international However, year-over-year.

predominantly fueled our was trends Importantly, entered continues of region our in most our distributor sales orders the pace from in XXXX, X Brazil. by growth countries and that given the to both Advanced vary of notably, recovery that to over of international from by months we orders business difficult generators remain generalize, Overall first in international Energy country.

America fourth of sales by in to Latin in in Europe, quarter East, Canada performance during and regions Middle APAC the lag. Our bolstered we and the saw Brazil, was performance in pockets continued strong strength while

enable X fourth discussion a Apyx for to position our progress. sales to strong to X achieve with our in progress for IDE our sell pursue on with to we that milestones multiple market. targeted Turning with clinical studies. to cosmetic indications us the specific quarter complemented Renuvion growth during Medical procedures market respect to operational new clinical our long-term and initiative our the We notable quarter will pleased strategic performance surgery first Starting were of initiatives fourth

early are studies indications laxity As new clinical November, patient our in resurfacing completed pursuit use of the of for procedures. for dermal a support use reminder, study, the dermal we In Renuvion and skin conducting these we evaluating to enrollment technology in procedures. the resurfacing

by on Following analyzing follow-up been from this XXXX. our end data submitting team aggregating the completing of the request focused our of visits the and for May goal and XX-day enrollment, of collecting, the the for XXX(k) has the completion enrolled study patients clearance with

procedures forward X Phase portion we completing November that with enabling concluded the the met approved that use safety X On requirements, the this skin evaluating After regions. we the data X of of announced We the safety I in neck Phase to the FDA supplement to of Phase month the XX, our data, the IDE study. and our from laxity in reviewing FDA Renuvion study, submental study. of the also submitted FDA us move

third enrollment of report investigational I initiated as the to during treatment based Phase that from statistical Our quarter on protocol to the will included to expect in I of approved an increase plan Phase in in number feedback supplement investigators in December we updated our sites. anticipated, enrollment we to II changes well as an as pleased am and the XXXX. analysis and continue complete

of goal global our we strategy, our to terms commercial Technology countries, of footprint. clearance continue our expanding OUS Plasma regulatory Helium of pursue regulatory with in new In the

our quarter, regulatory team global contribute fourth countries performance in America report XXXX, Latin remain new but new to in During product able was I'm X the materially product COVID. and our countries do due progress these to obtaining obtain to Europe. in in the to Eastern X not pleased of pleased that expect new registrations to pace registrations by despite We our rapid disruptions

our Turning initiative. strategic to second

events, Each various of the coagulation on liposuction. back We following contouring On initiative, Technical our use in Collectively, which bolster and publications fourth which evaluated expand announced peer-reviewed Biomedical combination for Renuvion Journal cosmetic training focused outside Forum, Outside surgery events for hosted the from to which areas and our of the our of On subdermal of both U.S., third October distributors technologies to evidence to and hosted with body. in some continue for were during new U.S., risk-benefit We our other portfolio the our Renuvion the our One Research, during multiple peer-reviewed for attendance from the Reviews. similar were in virtual in the strategic organize respect XX, of our see programs. lieu features these of our supporting areas physician coagulation virtual virtual the of the Scientific the chart enhancing pleased physician additional conduct parts while physicians. our Dermatological use journal, in when included focused Journal In for middle customers we and body. to support upper in in-person use publication portfolio coagulation continue the of the technology in liposuction retrospective of education with evaluated on approximately of featured profile X Open article the the to the independent procedures. on publications on Surgery regions data subdermal evidence our events of another publications team to the physician were of With X programs sessions cosmetic the neck, Renuvion in of articles, was quarter. used our the in-person continued multiple to of X XX, educate technology clinical and Helium published quarter October subdermal drew practice several across use studies. Renuvion mentoring we Plasma benefits surgery These which also publication we Technology. XX in virtually. its the review Aesthetic with ultrasound-assisted educational X format

handpiece. to initiative, improving team which to and marketing our new marketing existing for our via now Our customers use manufacturing Renuvion online APR our a portal. expanding available fourth strategic of develop result capabilities manufacturing to final materials, our On the commercial our and are reduce continued our efficiencies, progress to Advanced unit demonstrate per the of as of cost adoption Energy our products continues efforts

existing XXXX, our to APR launch have of nearly handpiece base. introducing portion next-generation for we focused procedures. to the North early the on Following using our by a American our I'm this all report customers customer XXXX, that end of of begun had of our pleased new in handpiece product their

XX% for basis handpiece see QX, the which the created result the COVID pleased only approximately year pandemic, driver total our by we sales we of fourth experiencing by points sales during sales XXXX. gross primary improvement as a were headwinds the first the Importantly, the decline quarter margins was XX in in adoption during of half year-over-year a In of our to the spite that increased saw the continued strong X% APR our of year-over-year. ultimately after full summary, performance in decline of in

fourth supporting all their I'd we discuss very our them strong loss great long-term is year-over-year and and EBITDA. let financial challenging quarter further, discuss guidance. operating And a execution strong a on year. turn and performance congratulate to the our to adjusted the As to initiatives. to results that of important achieved over our drive on conclusion we our continue their margins, Tara direct dedication fourth performance result a our will to with customers to me gross and exceptional during lastly, improvements our quarter Tara progress and Tara? like that, strategic sales we a in complemented impressive of quarter net The team's XXXX With call and patients. financial total

Tara Semb

our expenses million was services, costs year-over-year million to $X.X offset our XX.X% continued segment The $X.X in was in continuing and our the within well increase within in The million down million new the efficiency $X.X mix benefit of or million million a quarter compared related compared approximately $X.XX geographical outpacing $XX.X P&L. will margins mix expenses Thanks, profit results the Energy as to and million profit $X.X domestic sales of of due to due growth fourth profit offset million. of $X.X decreased my OEM margins introduction international the year-over-year fourth handpiece. revenue was by XX.X% increase to XXXX. margin increased segment and as XX.X% financial XXXX $X.X XXXX. $X.X XXXX compared Energy XXXX share fourth products, XX.X% growth. by year-over-year was in expenses, APR driven of benefits response million Advanced the Operating profit reduce for sales loss million Gross Fourth from driven initiatives the $X for product compared of SG&A segment review by our early to by of decrease for costs. fourth the last fourth $X.X impact in Gross operating our quarter of financial to to continued mix Charlie. partially million year-over-year last in to The million EBITDA to increase in year. per product including margins The quarter from and operations manufacturing the Advanced quarter in was XXXX for of on quarter of the $X.X quarter to our attributable XXXX Loss the Income $X.X our million fourth professional QX part or operating to expenses begin $X.XX the quarter year. to year-over-year COVID-XX operating quarter XXXX quarter salaries or in million quarter was fourth a last control for I for for improved was $X.X of loss $X.X partially a R&D fourth condition. the for the in Net fourth a expenses $X.X reflects XXXX the decrease in year. in million initiatives decrease per decrease million loss by of or adjusted discretionary compared of XXXX. tax was our XXXX and stockholders in spending to share $X.X million compared $X.X product decrease

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

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

working million, receiving XXXX As the XXXX net million of operating loss had XX, tax company carrybacks $X.X the December approximately expected $XX.X the of XXXX, of capital during the including company refunds related that our anticipates resulting Act. CARES from to

review we earnings to XXXX release Turning a financial press our which of introduced morning. our in guidance, this

by revenue million primarily Energy fiscal demand in XX% We year $XX.X in $X.X in representing of to to revenue million year-over-year its U.S. $XX.X OEM $XX.X growth of following compared that range in expect a of XX% approximately subdermal year-over-year range total growth year that in renewing XX% revenue $XX.X XXXX. $X.X to of million, fiscal Energy Total international XXXX. the contributions as assumes and million, to driven existing from related in to million revenue of Energy a is million to Advanced The liposuction year-over-year use year of coagulator international total revenue growth on range revenue driven million, markets. Advanced only XX% million $XX.X sales representing compared of $XX.X assumes is the guidance compared revenue XXXX. fiscal of by representing XX% Advanced to procedures approximately decline growth to

EBITDA fiscal we the In XXXX, million to to million $XX.X $XX.X fiscal loss adjusted $XX.X And year terms guidance expect stockholders EBITDA of million expect XXXX. compared compared of the million in of in range for $XX.X adjusted to $XX profitability net we year attributable XXXX. of million loss range to in to $XX.X million loss year fiscal in

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

for our In considerations guidance we formal modeling financial providing XXXX, purposes. for some addition to are

than Energy our of and decline the OEM XX% in from XX% First, will Advanced driven on OEM by by we expect XXXX, be revenue guidance impact trends COVID-related our offsetting recovery which growth business, year-over-year, company of total driven at midpoint exclusively customers. more growth demand assumes range in sales our the primarily the

by and Second, at driven Advanced markets. year will the business be the midpoint strong our this U.S. in international Energy growth XX% in growth in both

However, roughly international we expect customers in Advanced Energy in and customers. Advanced sales to sales to roughly Energy growth U.S. XX% XX% growth

of a tax the an operating $XXX,XXX year, approximately income year for by to segment, venture gross driven in approximately expense in tax to GAAP expense handpieces, expense primarily compensation by the expenses margins compensation-related continued Act. COVID-related the net benefit which expect from to in our geography compared million and increase $X.X travel XXXX, approximately last stock-based we other including by range mix expect manufacturing expenses discretionary, joint Third, normalized that we of year. of XX% in expense XXXX of XXXX Fifth, growth reductions loss our benefit Fourth, and entertainment initial approximately operating the partnership incremental $X.X we expenses, and product, in compared $XXX,XXX of XXXX roughly which excludes plus of tax to handpiece. and million expense, GAAP $XXX,XXX mid-single-digit expense related XXXX in our by benefits which XX% approximately Sixth, interest XX% by year. this benefited APR to to last $XXX,XXX included of established XXXX aforementioned year-over-year, our of compared continued net other and our XX.X% driven specifically $X.X approximately operating income initiatives million efficiency China including operating carryback in CARES benefit last

approximately to million and $X.X of average outstanding a weighted range shares stock-based Finally, of $XXX,XXX, expense million amortization diluted million non-cash compensation expect and approximately depreciation $X.X in we shares. XX of non-cash

representing $X of total range of million range the of quarter for approximately revenue to practice of This revenue $X.X million of are In our in our last addition we XX% a Advanced turn the of assumes Energy the it total quarterly approximately to revenue XXXX, revenue year-over-year. representing expectations week decrease thought $X.X formal for of OEM in and that, range million, XX% in representing growth total to first range of the to -- $XXX,XXX, call $X provide for growth interest transparency. to guidance, the I'll would XX% Charlie of it of for revenue We of quarter X% With financial fiscal guidance to while a is fiscal XXXX, be XXXX share that not XX% helpful year-over-year. back Charlie? to remarks. to anticipate in million, first the reporting given we the closing

Charlie Goodwin

Thanks, Tara.

of remain expectations strong impacted in in with our of ability from drive year-over-year the and QX internationally. in XX% optimistic demand and we the Energy handpieces pace Advanced continued respect are about both distributors to we XXXX, internationally to of have XX% the surge enter Advanced the and months. confident environment growth the to be the to to prospects Meanwhile, evidence equipment of we our we see capital specifically, continues in uncertain, Energy our in cases despite With As utilization business timing recent and COVID XXXX. of domestically remains in our U.S., recovery along range

of -- As representing the our also purchasing seasonality generator a first generator in sales trends, full year quarter we to we with capital also trends experience equipment tend the reminder, sales. see smallest typically portion

and for XXXX. result is Looking Apyx focused a demand we Advanced positioned and expanded Energy distribution ahead, OUS as progress, clinical regulatory global continued in Medical handpieces our network of our continue strong and better execution

enhance further our the beyond recovering we to to forward effects initiatives X to continuing while COVID look quarter, As opportunities against the come. execute first from to years of we the strategic move our in

to dollar with support global and addressable greatly sheet next growth patients to looking for. believe let's they for now emphasizing our support clinical a strong the technology few initiatives mission our Apyx elevate strong, that market enabling of of deliver balance truly improving the market I'd call evidence. that our close to Medical like surgery to and the that, a questions. sustained we differentiated employees, years, the my achieve as are open a results multi-billion we expanding customers, With the supported level continue and appreciate growth opportunity, is by surgeons poised to portfolio by the and we Over next their to profitability investors distributors remarks cosmetic by operator,

Operator

O'Brien [Operator Instructions] today question coming is Piper first from from Sandler. Our Matthew

Matthew O'Brien

in on and or the QX, benefit guess, we QX? talk about you that based really what said I what the Advanced I each the guidance in you Tara, from QX, about year, of when then which about some I out And well Charlie just QX. last saw Energy, in quarters, you did QX million Can about it in saw below you is Advanced Energy what did net you $X.X $XX million. here for X what assumes about mean, then the you of said for

it all X last far momentum you run So in be just like kind rate the that of given level feels missing of the are What again, as year lower globally. at quarters that's for that kind would what as versus Energy of in Advanced conservative, printed we just that QX? somewhat the

Charlie Goodwin

the for hi, thanks Well, Matt, comment.

at always in sales QX. we're that sitting change did The the not is and especially sales. generator today. first seasonality thing, all And as capital always QX is remember, here lowest our quarter, seasonality for there's

that QX from decline So down QX. in about XX% to to XX% a seasonality usually there's

the so, to number be would in our And expect we QX, lowest obviously, year.

Matthew O'Brien

Okay.

follow-up, the well. question just didn't I real Sorry, ask to and

which great. You Energy million did is Advanced QX, in in $XX

You're to the XX guiding for year. to XX

annualized so customers, I below all that just momentum. you seems well Energy you to what QX, Advanced a something normal. be with call are trying the at new the on Is to than QX? conservative in given here? rate it trying conservative number there CapEx for based just out really it's happened are Or it's that better outlook like business it's so and And that It get

Charlie Goodwin

to decline, XX% we guided in did X. The Energy Advanced and we to X.X of QX, in then QX X.X

see the So decline XX% of that with from it's typically normal right seasonality our in we business. line that

Matthew O'Brien

Got it.

And secondly, it offline. this what talk has then story strength was can about really you're good see. domestic And while to I seeing? for I international Okay. was forward? seeing you're should know them you was think been new the countries just to We'll to big X I obviously, follow-up but And here, story component strength a that of and a much but know going then X it's lot other there? Brazil, companies. contribute international of the the aesthetic Because a And how a

Charlie Goodwin

Yes.

Brazil. about record which a we of half East, were that that Taiwan, in the Thailand And COVID OUS from growth other about. sales by than upside at we contributor million, other So good and that that the impressed gotten. They had growth was then you year-over-year demand incredibly was with our demand obviously some And some to much largest quarter. up those half customers, better markets. newer the the And million, it XX% the fourth of by in was are especially really strong the orders And driven Middle actually in And that total $X.X that of December. $X.X came which upside the had in talked were represented some countries pretty the from put expectations. coming back given with the challenges that, were those of

States. And Brazil, the market so But world. largest procedures, the in if look especially are surgical do being prospects, procedures we than our at very second the cosmetic positive you actually United they on surgical more in long-term

are that what that's obviously, there. us a have the in down And the COVID bit, the really we of how once is but time any thing they COVID think fourth don't only by ravaged through reason driver. down in line year happens international obviously, get we're they of only what get this, sales, of once and this I the I little us year. form factors, past grow And a with pause. they past Brazil, forecasting international for. we we're XX% But because things for looking the only that all the this this get being will of are to COVID, one surprised a of happens But quarter we pause growth in and gives forecasting a of what Brazil that little to only that's those continue be have bit COVID

Operator

coming from Craig-Hallum is question Next Hewitt Capital from Group. Matt

Matt Hewitt

the to reinvigorate generator to front. Is some take Maybe we're up, of going kind what the first -- sales? progress do think vaccine that it's the you obviously, seeing on

So further is of is the to customers just that get is going other again? ultimately comfortable it start Or generators there rollout some allow buying and to factor at play?

Charlie Goodwin

Yes. No.

to getting So generators than clear be QX better was was I want QX. that QX keep QX. better, better okay? than

are improving. not So offices by not that just and the the allowing new the place try States, in to, down it they really level generators at in in. is keep protocols are They're United to safe people were to pre-COVID, everybody especially putting comes

be. I what vaccinated And just more to know get like trade time those don't going better, time and we for so to would exactly that, as get as over expect shows everybody we to that normalization get things we and is

see We are done virtually. have trade that even starting people the couple of to to isn't with being live at everything are live instead them, great those But starting yet. a attendance of people shows, shows that

will. as it tough you expect keep but if that getting goes switch the when to flips, we year predict on, to -- and it's better when So really

Matt Hewitt

travel. was maybe then year, the across It sorts that areas. was expenses And it. Got obviously, people headcount, all happened, the with but of side, it everything were last on board, cut

sales perspective, cadence ramping this a you comes we your And those the expenses hiring some the about back as guess side? incremental what year, it plans on tied I As up, marketing of the be from that, should thinking to then to how particularly expenses? are at travel and the particularly of and look

Charlie Goodwin

Yes.

me of today. the marketing sales with handle we let and the size first. happy We're team So that side the have

figure got for And But will so expenses. of the able team to savings on in show into million growth the basis there's exercise continue were investing to about like with you through $X.X you see and in where a getting launches will of be we're that And XXXX XXXX. all savings obviously, that walk normalized things And the where studies good very we just ready go that and Tara COVID-related will that. the a and throughout we're IDE -- then in expenses. back dermal we

she So for whole talk the she's walk you thing it, out after but can when of through we all laid that got you.

Operator

from Turkaly David from is question next JMP Securities. coming Our

Unidentified Analyst

It's Danny on Dave. for actually

few Just ones. quick had a

surgeries, higher more undergo driving very but First remote market handpiece we own fantastic. company's color demand the quarter, all, beyond Do growth? you be Are more domestically your seeing this wanted broader surgery that would to market of market was might ask strong just you cosmetic dynamics any about willingness maybe there's or a from think more additional to stimulus? this patients even the Any these given the work, be recovery convenient broader on execution?

Charlie Goodwin

of some question, driving this. good are Danny, on Yes, that you. No, hit a thank the you very factors it's Yes. and

what see I for high. customers is to what to demand our we hear think these continue we procedures from and to continues continue be that

factors, other is permanent invasive I solution, procedure, is because interesting of some you the is unlike different thing it very a will, that less these of particular, is in I think because think these our good if modalities. all

this the that you've for and given a permanent as demand see And function prefer something the I does. at the procedures done, that technology And job our time more you've get think what these got think the got can so to you people And by quite home. really doesn't solution that got they time. I They've opposed recover. would that's

obviously view, continuing. and we're encouraged see that. -- of And the too so, that that and by they're customer from And point from very happy

Unidentified Analyst

one follow-up. then And just Great.

may through sure, in the obviously, I XQ customers XQ, just with have up saw had that to a around worked in backlog a wanted backlog COVID? built you Or that, mentioned, you just being You you but there be was color of missed in any anything August. would have it, great. any bit that by I resurgence make saw or

Charlie Goodwin

Outside the in our lockdown and just QX, in countries to United been the working trickier, see demand customers. States, U.S., QX. in continue customers been were the a No, open in some of little it's strong have we under that those Yes. and all for

countries obviously, outside strength we're not we sure, be. by that And quarter, so the still of are affected in fourth some obviously But to overall aren't would and some like strong but working it XXX%. outside the States having the at as are U.S. United countries, -- being was for as those shutdowns obviously great the

Operator

from Securities. question from next coming Kyle is Our today Bauser Colliers

Kyle Bauser

in for of OUS sales I couple on $X Maybe Energy just almost update. strength the $X considering sales, before, Advanced in versus quarters of seen Advanced mean, Energy phenomenal kind internationally. U.S. the much QX. maybe following Great you've pretty up back a QX, were million envelope and it's as the math, seasonality same to million

country, later Or see we've this strength, that So you of low-hanging a about it's should but of bolus bit? year? pretty do smoothing there's fruit a into I in there particularly, a pent-up seen clearance still that and QX. understand kind a cadence it's new just you nice in relatively opportunity in lot demand of anticipate -- market. that demand, into heading heading just about seasonality, Can Brazil, of some getting the massive wondering out a and kind was we for little talk geography

Charlie Goodwin

Yes.

year-over-year QX, Energy frame. impact with OUS revenue a obviously, of preliminary that from an our remarks United growth And strong about QX XX% to we're had countries. by COVID XX% year, in in that the we assumed time our Advanced And in and of growth March expecting the lower the especially States, February, our comparison provided So QX. expectations XX% is as driven in last outside demand existing handpiece that,

doing the Brazil talking comparison. assumes from have obviously, XX% need about from and you're on specifically, they're we over doctors talking doctors this. get full remember a them. do easier And contouring you body on When it's over procedures an year-over-year. to our year to that procedures, that world see XXXX time guidance all these world that, every about So posted And Instagram the all international

non-COVID to a to to a We there obviously, technology. of the key so is us have when for people than of expect I the more that enter we looking future. more. very be very are even market Brazil are And a and doing Brazil, now, be even environment, would like in a the will that in think a right and seen -- of work forward us market growing Brazil lot these be In acquiring a we doctors is, lot

As United mentioned they States. before, the surgery they're cosmetic than do second largest Brazil the actually the in market I more surgical world, in procedures but

come. that's So look be pounding that I market Brazil a on United bigger we don't right now long a And go we're how and visibility you actually years all that COVID as with is, what's things we're -- they have and to crazy The that. that the good we going on have And of you to along there. just going happen States. a this driver last, reason if don't it's big perspective, market down to the those reason like know, just have types would in to just it not the cautious surgical on expect at for from table going

for So gets a be the it we about only market will as us move that's that the In us Brazil. pause very forward. large a run, long thing

Kyle Bauser

bucket? step-up you with that Any peer-to-peer great. would Should back this XXXX. extra that here. professional of it. $X to in that lot how And sense. I color bucket, down should Got No, we're going related makes guidance And you said amount expenses know of kind in into services appreciate nice that. commensurate a expenses, be then I incremental specifically year? QX. amount there to in more million a operating decent the gave expenses the that's we a about coming Agreed. in decent trainings. nearly Maybe of that just step sequentially But terms of think

Tara Semb

Yes.

spend activities year-over-year venture. overall mid-single-digits. that additional items is $X.X amount million joint of $XX change and we to back at would ramping under I what and million in first OpEx really, have about the include And We're just comp in to the an incremental expense. consider that million. in was normalized then XXXX, looking China just OpEx talked to big look to think remarks in of the X%, our And we that savings add so we're you'd get to up OpEx COVID normalize that other X a really in that, to bucket stock it at about prepared $X.X normalized

And So that. normalized $X.X the year-over-year. with then top incremental, of that's total it's to about the look million at on X% But of a overall, XX.

Operator

coming [Operator is Capital. RENN from question next Our with Cleveland Instructions] Russell

Russell Cleveland

be congratulations Are the quarter. ongoing, we of talk means? Explain people about some one We initiatives, the good the or in and on initiatives. and My these study tests period. question on report these rough the initiatives? third the for Thanks third -- enrollment coming the a color give through completed we're enrolling that, us just and really around talk in will FDA is that what about quarter the new the when

Charlie Goodwin

Okay.

patients. in expect and still the prepare there's then those those there's at follow-up have the patients. sometime dermal the the the at there. laxity. that and to of on end the there be FDA IDE skin XX a those those X completed is the X subjects enrollment laxity centers. started to that IDE we the then subjects will then third that the the is remind X-month of skin third after for up studies remember, And actually at for one follow-up, time end everybody And and will of doing, submissions December, we enrolling And of to patients, X-month data, all that the currently to the And quarter. analyze point we resurfacing So we're just treated quarter, XX enrollment of that we and subjects are in submit And

for laxity the or skin research -- So study. me, for skin that's excuse the

resurfacing the are said May On at on announced following end goal -- of analyzing FDA data patients And was for always that is on back the the on XX-day a we of that for to the and on to that follow-ups, year. and the study, enrollment by process year, XX-day plus X, submit the that now we data we we’re track from been then typically that FDA XXX(k) to -- to in that everything of that. a this has are submit we is hear end our May of up this their the November And process of dermal the else. completed and have

Russell Cleveland

thanks for that Well clarification.

all So we’re on making fronts. progress there

appreciate That’s So that. I I all have.

Charlie Goodwin

to if having on of And going. studies I just working and on these involved that can through sites, clinical you we're talked that Yes, navigate to job through the to here track COVID top all And things that and on keeping we about COVID a we and tell thank comment to you, sit they to our make just the all team be Russell. do and in track is one did in magnificent to that this. able people have the testament a

thank all so and you for they're going. listening, all work hard that And much your if keeping very

So thank you.

Operator

does session. I'd like turn any to floor question-and-answer over management further to for our That conclude or closing the back comments.

Charlie Goodwin

you. thank No,

Operator

conference That today. does thank conclude you our today. participation for We your

Charlie Goodwin

you. Thank

Tara Semb

Thank you.

Apyx Medical (APYX) 31 Mar 212020 Q4 Earnings call transcript