ICAD - Earnings call transcript Q3 2017

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Operator

Good day, and welcome to the iCAD Medical Third Quarter 2017 Earnings Conference Call. Today's call is being recorded. At this time, I would like to turn the conference over to Bob Yedid, with LifeSci Advisors. Please go ahead.

Bob Yedid

Thank you, operator, and good afternoon. today's in participating for call. Thanks

the iCAD Joining XX, Officer iCAD XXXX. Ferry, nine for Executive Ken Rich me announced period Christopher, September results afternoon, from and this Chief Chief Earlier and are Financial ended month three financial month Officer.

Furthermore, call begin, risks the conference risk and Securities any X, in date content materially over the results events the results that with Exchange and no may management to said, Commission, and we uncertainties limitation, review during iCAD like I of filings to caution contains update to Ken? forward-looking only With the future encourage conference from the would call pleasure turn to revise is statements. November information the reflect my regarding obligation that Before as that Ken you iCAD. made of described actual call. contains after broadcast, without this call comments to and XXXX. company's XX-K, forward-looking Ferry, the or time-sensitive live the including, company's of that differ cause this accurate of CEO. undertakes conference events to or by involve which this the it's factors of or XX-Q statements to those I statements date this circumstances Forms operations identify specific that

Ken Ferry

today. provide call the update before greater detail. will and review I'll turn Rich's of Good some our today's who I'll key quarter call for financial for comments At remarks, us over questions. begin opening financial Christopher, XXXX. for the afternoon, in of drivers our results Rich CFO, everyone, call to results growth the conclusion on third an I'll the thank joining you brief with the then our

strong showed detection The strongest of generating businesses. and therapy third in by year-to-date. It represented our XXXX demand product revenue quarter was our both

to our We good in top business to the of when quarters. made artificial accelerate forward. growth XXXX. software with of managing will first two momentum as the operating on XXXX. our business, update to expansion progress of compared particularly believe area We third intend growth after update for expenses detection provide business this with quarters be coming going important in We'll CFO, well as continue an addition, provides the In our intelligence, of as our we progress driver performance a margin our line therapy and quarter Rich? Rich, financial detailed this

Rich Christopher

to the XXXX Thank you, release. this Ken, like review were I'd quarter financial company's highlights third disclosed and in which good everyone. afternoon, earnings afternoon's

As quarter, I discussing you and the the SEC The in financial on highlights Form third to will quarterly I'd for Form file expects quarter to coming XXXX for XX-Q like Company the more its the only results third the our details. report our of XX-Q days. for to refer of specifics be with

information way that non-GAAP with get I company. to Before Management to view believes reflect meaningful investors measures these financial financial the note will started that that I measures. the referring well I be of would better my to during comments like we operating certain provide as as performance highlights, the today, the

results release. GAAP our the of covered, of You quarter. our summarize can With now the end to for the financial reconciliation measures will find non-GAAP a earnings I at that

MRI prior revenue. be XX% in a the year revenues the or of increase prior was year-over-year driven comparable increase inclusion by over noted revenue For the that XX% $X the by year reflecting therapy change third and quarter. detection It was quarter $X negatively revenue of in million a in quarter. was growth our should The impacted $XXX,XXX from year-over-year improvement million, X% a XXXX, total

XXXX. of our on MRI we first calls, As earnings sale the completed in previous detailed quarter assets the

cancer segment. to cancer was XX% was increase Taking of segment quarter. the a period. total revenue. or in reflective or of XX% our a our or driven detection representing increase in therapy The by increased look the impact increase $X.X prior by $XXX,XXX MRI entirely at year versus increased change our year-over-year Shifting robust $X for revenues. XXXX the our million, XX% our the quarter prior therapy prior results revenue solid segment. period. XX% MRI $XXX,XXX The the increase X% of in and comparable Excluding Again, in XX% detection is revenues, or year year over the revenues the Total of $X.X revenues excluding over adjusted by revenue impact increase million in the product revenues, million year-over-year detection third revenue the a detection

result The Third $XXX,XXX increase in quarter service by controller up was $XXX,XXX the of Xoft to of quarter. million, in and or prior improvement of from a categories. product in as totaled a product $XXX,XXX is in our increase treatment is XX% administered. as are The a both as system incremental well in in therapy subscription the $X.X year in IORT reflective revenues The revenue using cancer a the of patient increase constituted revenue and growth revenue that increase sales skin volume revenue. customers treat the number service increase an

achieved of to $X.X gross from segments. in product XXXX expansion quarter. year was mix. profit down third and to for entirely due profit. revenue increased Moving basis, a the the basis, from top profit our the result expectations, gross a change On On percentage the profit improvement. profit million a in dollar third XX% both a quarter gross improvement year-over-year in line million gross quarter prior in The XXXX, gross quarter in as of The therapy was the XX%, was but percentage $XXX,XXX our in line on detection of $X.X slightly with to

the to company noncash of quarter charge operating as far carrying the million, assets the a these therapy and of third goodwill expenses our exceeded goodwill third determined In million million go, impairment annual XXXX, their the of assets charge. quarter totaled intangible XXXX. $XX.X fair $X.X at the As representing The of third in related the estimated resulting impairment completed value in over XXXX value, expenses company business. operating that its of a increase assessment quarter and $X.X recorded the

improvement recent below business our has a time quarters, has it levels While longer anticipated. in shown at previously over therapy period of performed

third third with estimated relatively operating XXXX. in the goodwill Excluding of million was $X.X impairment quarter recorded the charge, expenses the for million, total of quarter the consistent XXXX $X.X

gross Looking metrics. million, comparable The of $XXX,XXX prior goodwill prior over at basis, estimated $XXX,XXX. profit $X.X impairment or On driven million representing million the to was by The quarter. the loss the adjusted improvement in loss profit net quarter for or improvement the compared of a per loss share increase $X.X for XXXX year due EBITDA partially year-over-year our the which net to million $X.X non-GAAP million loss the by gross year net a our was a share $X.XX EBITDA per in charge, GAAP $X.X profit of was $X.X third was net adjusted also non-GAAP growth offset growth. period. quarter was $X.XX

million on with XX, third sheet. We compared to the December $XX.X of we the $X.X had as in of XXXX quarter hand hand the on balance XXXX. now million cash to as ended Moving

quarter from was of term was $X.X of The the We by the our we due the cash XXXX. experienced of proceeds that which in payment of $X $X.X quarter the grow. anticipate loan, partially the our noted a from usage receipt quarter. cash During third be XXXX a a to of of revenues million be cash included to million usage the increase XXXX, should It million our usage increase in offset patent quarterly lower will continue our dispute the position. settlement as cash fourth final $XXX,XXX in related to Company's

Silicon on consists call, entered in $X term a Valley amount line to credit the XXXX, $XX and our of revolving up $X facility mentioned million I in last Bank. As transaction The a million million of of credit. August of a loan the into company with

the a in the to an assuming addition, has debt. an million specific achievement revenue option milestone, secure term additional company $X In of

cash million as top $X growth from product as initial key summary, advance development well as stated these be our In cash programs. utilized in quarter strengthen revenue performance Collectively, term to follows. our the XXXX. and are expected support As the loan received of funds to position help the during we takeaways our previously, line third to the are from

line top revenue growth. is our showing First, strong

$XXX,XXX Excluding is increase or fueled our MRI or a year-to-date was increase XX% up detection The revenues, revenue total $X.X or growth in million revenues. million therapy by and in revenues our $X.X XX%. XX% a

XX% are and product within from revenues specifically, period, million revenues or our robust growing nine were a $X.X up nicely. excluding Second, product detection detection month revenues most year-over-year. MRI the segment Again,

is area our strong Third, $XXX,XXX revenues segment basis, therapy a were subscription-based On representative our therapy service demonstrating within This business. skin are nine-month X% or growth. of also year-over-year. therapy service up revenues

modest, as this we good year While fact given just that view ago. may growth was the business a that subscription over launched seem the

the believe allowing new support strategic time Bank section concludes credit critical the the us further with our revenue Silicon facility at top-line help of This the to the financial make $XX growth. profitability achievement of million company highlights will we Valley finance investments same Lastly, while presentation. to to

turn call Now back the I over to Ken. would like to

Ken Ferry

Rich. Thanks,

road solutions detection and included of clinical road effectively intelligence efforts all teams continue today sell the customers roadshow ongoing with PowerLook We're the at deep positive the the across the most participated We well-known increase a over led on cities customer Technology webinars. over its as breast PowerLook an such Santa coming Imaging and Detection promotional where first in sales commercial ads software. our News, women's from solution, imaging artificial Breast PowerLook breast on applications August; this US that press cancer detection held and highly the highlighted Radiologic Technologists opportunities. success as targeted our releases based health, Tomo and traction, and the for show highlight commercially including begin of to in potential The and multiple Imaging over of received our detection and we Annual America, to Detection, We will Society on positive clinical this available software of GE the in sales summer following using GE gaining meetings business. recently us momentum Mammography September, of number a of XXnd topic participation third Detection; the continuing have in as of artificial in Tomo care portal focused launched Fe the North maximize GE the Let at September, and was quarter Radiology feedback events and directly market XD Tomo over European pleased of The intelligence. potential with Society weeks force Wyoming tomo strong the imaging show, several GE which breast our to first-of-a-kind banners on software of To powerful in XX position the women's latest on year's website for presence education Also education well in Society with fall. customers machine Efforts quarters. focused mammograms. we are of we'll is Chicago, begins the is sponsorship learning cancer to product in issuing practice. the this multiple exclusive in development

in with to artificial our addition booth show trade pavilion. intelligence iCAD artificial space secured usual dedicated messaging intelligence, booth on will we've the In focus majority RSNA, at of our the

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are on artificial software of said road of and in broader learning. call, I our as map a developing deep last based on Finally, the we process machine solutions intelligence,

significant years our augmenting like product portfolio on a area, We benefit of a development as customers. experience coming in products to we with an engineering this to robust I'd innovative well business. forward of and solution the brachytherapy skin have provide therapy, and highly -- as in the Shifting our our progress our for platform and look to advanced update

we've In to start we meetings actively sites as We four marketing third a two an to cancer the efforts from treating ongoing non-surgical the the who have capital increased increase of volume we patient XXXX a of end at the over third eBx in XX and product with continue treating total increase educate quarter our non-melanoma volume, we potential the we progress which fourth and in XX,XXX promote subscription approximately for two sites XXXX fractions continue third to the over the of XX%. XXX%. XXXX. growth substantial added as new from oncology and where dermatology and recurring we most have XXXX, in Mohs continued September at including treating of the our X,XXX alternative of category, new of approximately regards treating at well treatment in to skin programs at increased treatment treatment iCAD therapy momentum, sites and XXXX previously, importantly, ultimately end said subscription. are Most to can end and we've of achieve and Collectively, sites as in of assisting sites the of rate customers In adding XX sales. attending customers increasing we end in increase XXXX, provides this delivered an time. quarter good XX quarter fractions gone treating the awareness quarter time, over as of to effort XXXX, benefits an to of In surgery the increase six revenue for the key of

treatment we’re recently This research on six the physicians webinar to oral XX% data XX, during the of from peer relevant was takes meeting. ASTRO for match that XXXX study cancer We our of XX. and most published vision upcoming treatment and or discussing cases of a ASTRO previously, This selected ASTRO for features recognizes side American study expert presentation of this different had experience, for like Also, years at XXXX over long-term XX brachytherapy viewings. dry I'd the we hosted to system the September Moreover, treatment, Radiation Mohs the clinical of Xoft multicenter a As skin Other on which and the program showed versus place eye, the such stream two cancer. electronic influential for discussed eBx results from skin no corneal control for presented eBx the which registrants of for we of ASTRO quarter non-melanoma the non-melanoma local dermatology ranging their periocular skin post with have was abstract Oncology, for retinitis. Society changes, presentation included a series that result, the community a from XXXX. meeting or well-attended November effects, Best live injury reported at consistent in centers. treatment and third highly rate offices as large using XXX presentations four-part highlight the replay cancer focused

X,XXX a other cosmetic of low presence This the rate IORT, applications, clinical patients. year. about this These at treatment results cancers. events a U.S. well for the ASTRO our breast with our or of and now only cancer treatment business let's recurrences Xoft turn is as presentations update IORT system adverse at in breast appropriate of certain Now were enrolled. of data with in on as treatment date and was that trial actually the to cancers intraoperative excellent high-grade GYN on and rates breast patients in the radiation use for to part therapy, The good stage the in demonstrating with Xoft early the IORT largest results ASTRO survival IORT the significant an of were the cancer presented of therapy has study

experts additional series also of leading our in discussion presentations We the peer-to-peer hosted with booth. opportunities at

hosted we successful cocktail addition, reception. eBx In of a evening

our of booth significant extremely business. Collectively, presentations amount demonstrations a these therapy and momentum Our attended. all for generate were efforts well skin

XX meeting. ASTRO at in have at in over quarter. X XX% last over nearly currently and the XXXX, Immunization and XX increase applications. U.S. an centers X with X presence IORT new high system placed GYN critical XXX third us we centers treating generated years medical our leads, We system IORT Specifically, this and patients standpoint, and all-time for XXXX OUS GYN the

pleased continue in also strong the by encouraged we lengthy particularly While Drug volume international recently recently cycle the growth, markets applicators Balloon for third sales this Xoft fourth to the Axxent system. challenged have and treatment a We're progress the to and procedure breast be China placements IORT in stage received of We're Xoft from in the we or anticipate internationally. area stronger eBx U.S. applicators announce approval the Balloon cancer. key segment, in the that and CFDA, in early component our systems' of the also U.S. the in by quarter. are Administration, a in The Food quarter

It's to this in in a very is time use to as the system an of is for opportunity ability limited. attractive believe We coming revenue the the of radiation will us Xoft treatment facilities more a deliver compelling With health a diagnosed one-and-done access The available whom of have XXX,XXX China are the iCAD, there rapidly. disease. systems marketplace of and now the XX,XXX to rate patients Xoft as with than incidence complete clinicians who breast an CFDA this more in been with growing years. the has where China countries important in more approval, surgery and other China. suite died care women therapy the offering China important product for over are at in be cancer option And than is XXXX, are convenient

business, in market opportunity. largest to skin So our the to continue we achieve therapy progress brachytherapy, summarize, the status of

U.S. in quarter and now And Europe in in therapy strong GYN, the we this, all with call growth continuing an and that momentum XXXX and fourth with with summary, remains addition, on we stronger beyond. interest and increased to to of are to the to gain IORT In questions. in Asia. Based Operator? the open up expect your achieve continue traction opportunity we'll

Operator

you Instructions]. [Operator first Thank And Per Craig-Hallum go to Group. we'll with Ostlund

Per Ostlund

in really afternoon we with start the in to prepared there seen of between was Wanted in. good with the the to show, there Is things, conclusion placements. normal that data an tomo CAD guys. course demand versus system? say we've system road remarks the you cause-and-effect is you placement conversion? have or there product a participated the the show, uptick demand how suite shakeout could tomo GE sort which of the Thanks, Since to upgrade draw or I the happy alluded Ken, Pristina show placements' GE And should to coincident of pent-up were MQSA that speak for side the to competitive show, of kind road road pent-up your within

Ken Ferry

Sure.

think, term backlog for as that position of GE I MQSA the had shipping a near certain well Per, fact data. has healthy a in is influenced as the the in healthy

as you think go late Pristina time, system March. their was in back I approved in

that were of based and definitely detection of from on obviously, they manufacturing shipping I the loyal to the in did QX. quarter, some that And base, QX third customer units than and very there's been more their nicely. pent-up have quarter was just in they so up they ramped demand then in us a It lot in time, particular, they evident software think number for purchased,

couple but their been something term have the minimum which spike couldn't MQSA really does So with of has with pent-up question, certainly some there quarters shipments long to is demand speculate system. I the shipping over addressed of another do that good of How at I think was sustainable on, that is plan. a certainly last the

market, In product, generation bag and there. are of of it's the kind are A current using out lot the it. fairly a customers with terms upgrade of their mixed first SenoClaire, happy

differentiated to to significant and over the some opportunity the enhancements to some real functionality Pristina because is is there entire there think I time workflow. real those upgrade

majority they with working an that so, the XD PowerLook surprise their teams, marketplace systems, same And have the systems, those then base Pristina focusing sales shipments, they we're technology. no not upgrade on, to with out all of on can we are detection And their as certainly customers time, roll if are them. most The of that our their essence, so install and early in server. at

upgraded up PowerLook of system. Detection of time than challenges some and budgets well And of over coming current blend market essence seeing it a GE, Detection. that budgeting XD their the going And and software to and a really XD Tomo think the it so are are PowerLook skew our in year the were to for We as the Detection. cost Tomo Pristina in using a we software when product approximately ago. towards our in products, significantly with Mammo PowerLook of ended software for orders that's relates the current software today, set And kind their as our customers year ago versions XD both now they as prior Tomo that more Detection

market as detection to as rate see higher sites next our of higher using able kind term and timing months a are very, in have the chosen we So have customers machines see exams license XX number well XD the add as But that the largely XD software. strong And with for XD majority do they XX near I proper over a interest today as growing amount are think upgrade evolves customers we a imaging the also of and benefit we the software budget just from issues it obvious to XD their and XD. time to in of will of are some it as attachment very the the of the today. see XD some of

market be then our is we'll XX will in addressable steady I healthy. market which in upgrade time second really out business, which very bring as the months addressable well collaborate XXXX placements, hopefully new XX second who sales, GE, software with an over version detection the more a our to And today, a I even to in And frame we address for see AI market of think as would increase innovation this XD. continues the next the around that So space. bigger beyond and opportunity we get the believe just product, larger as solution, with more particularly

I So pretty opportunity time. the think is considerable over

Per Ostlund

helpful. extremely is That

questions, answer, but to answered the guess, the extent with you instrument, you maybe I Ken. can. where the this That the the buying thing would be that X of to point? really primary attached rates. precisely helpful. next I holding just considerations can back this And think that come point, at my you would actually, then, to Pristina are attached I a rates on only know not back I at don't be guess, sort bracket is, people are how budgetary CAD the of taking from but tomo sort point

Ken Ferry

is look to issue, And if the XX% we've about essence, budgetary of what pricing cost difference. And actual a probably maybe learned in Tomo the probably the for difference is think XX% I budgetary that contrasted that. significant. good pricing probably then the is Per, software, a XD, you Pristina most at the system Yes, XX%, is in the Detection and also

$XX,XXX Seno think an upgrade version, that's or that to need called believe Iris, range. is ago I $XX,XXX mammo provides and was required, software that the something to The to also latest clear year is the other workstation thing I which don't to which that GE as as the in so the costs have a

a a the an has not a enough, customers sales PowerLook driven They that to unknowns of year license buying to and really budgeting contributed a So probably so attachment server. in there ago. term lot were existing short to for lot of

quarter as it overhang sales to sales compared will, year And to set growing were go. relates XD so mix so there is the good a are you some but of each news XD the that is if budgets or that

time. product The force new would Pristina sales the to your say technology same that lot other at taken has a about learn as well beyond is, detection disruptive question this on for the issue to tool as software I GE the

competition I this. learning there a there competition. I more believe think be there curve. proper to still needs have is The positioning, training, is the more and doesn't

they forth, something typically have solution clever which typically we as be so challenging So know, in this at of they up have in lots end responses to or can market least development provider GE make being why comparable short-term a because the the low-priced and up space. doesn't in

also cases, doing more education XD screening their that progress out think clearly they're and state I I is And properly, When by I there it there a issues properly, that, support adoption. So in customers can because is of is area. when buying product training. a time on is the the We're positioned recognize love and love number of that I They What it. machine, customers it. customers more still steady there trained more morning, on a I we're our think press But they as attachment sales one of and what fact, getting specialists, XD. many testimonials. do GE rate for strong need more need in are the more for increases, as released making think more to do We team, be there'll in this lot lot business us, be goes a a but come. will and matter and

while XD machine, screening. for being does and that XD utilized it is mostly So XD,

that the So need detection to is where volume most urgent more for applies XD of the software that's is. and

know, has its some screening -- will in we don't this for fairly will XD as what happen market occasions that rapidly. moving is So is but happened to

have it just a us XX in add XD and we'll Pristina software time. for at and in will only that or to And customer a big is around to just momentum took to so, the back a months the opportunity or XX revenue opportunity upgrade XD come XX for total the that us point upgrade market

noticeable these a as So I Pristina sales we The strong customers. not in sales. come. quarters mix we're see to said, quarter, of yet, XD each that all we in is And XD increase doing ratio but as for XD the business with quite to continue expect to

Per Ostlund

good. Very

floor. one that on have ceding I to Let want me ask that the I and more question therapy quickly ask one on you before

past at you was the least call, the I talked last perhaps CAD. about sales tomo believe On funnel too, what for call, the

and that million QX. at I the end of think the where sense XQ stood it end $X.X of at the a was the quarter? of third you at have Do of $X.X million end

Ken Ferry

could but I in a up We'll that number, you exact on larger good that. numbers. exact don't question. have an a I'm know don't was certain to the on end QX, you We of funnel get that. with You have back follow it's I it's

Per Ostlund

one you we And -- of wondering earlier We under if year. question contract. a totally between to the back went can let you and on can site skin I'm just commentary ask customer me skin treating kind help if in a fine. some Okay, that's differentiate the side.

as skin think, of under treating XX-ish there were XX sites. think I call, contract. And got the I then customers we've quarter now fourth

So obfuscate there reactivated kind is What service matter of that out line the are sort other subscription might these there? this and the of cadence that of supply that kind still of of underlying we just of expect are a folks that? that growth off rolling getting that at And point? kind customers

Ken Ferry

a were talking about difference sites. contracts, Yes, contracts between then total at one but total point and we treating there was

so per to the secondly, sites we change extent you what's What of the fractions about sites. how then quarter delivered. is most think last under subscription a and as really to what then you that move onboarding of really are do of business contract. many So we treating And contrasted how but talk backlog also treating to is many particularly being prior number a are is opposed many on side, in important to you And how fractions chose quarter secondly ramp, to have the quarters? try might to to delivered that capital when you some and revenue number number was metrics, in had uncomplicate growth of in you can in really starting a matters. sites, of most delivered. treatment do track So the a that about number to relevant this, sites the growth treating is the fractions what And

Operator

François Brisebois Laidlaw. next with And to we'll go

François Brisebois

so just couple There is a of lot of answers ones. a there, quick

quarter? of but tracking it the you it, missed Balloons maybe terms number IORT In for in did the I of down, mention

Ken Ferry

had we number the in strong a very, terms of very We did exact but overall not sales. Balloon Balloons, mention quarter of

on something if that we share regarding you Let Balloons. we see could have me Yes. with

actually U.S. 'XX saying, OUS. And And then was little bit about of had of approximately weighted and we've the so on number basis, it has been OUS. Frank, volume the year-to-date faster last look something is growing U.S. quarter a it XXX in QX, in record XX% XX% that treating strong a an the was really a growth as sites spike in we're volume unit more 'XX. OUS Balloon overall OUS, as overall But But third and actually quarter with ahead And again, sold, been you it, overall than quarter Our growing on up Balloon of towards again, Balloons strong a in XX% versus balloon almost growth sales. year, were extraordinarily the growth. year-to-date at faster actually hence about really that was more an basis, skewed

François Brisebois

That's timing XX,XXX. nice any using away for was very something of is on the there that And number skin maybe? the maybe of then any guys to areas disease could therapy, see, you on, color different tomo uptick. give the AI move breast, and a Is for in terms from nice that treatments

Ken Ferry

cancers in image opportunity imaging of well. validating also detection that where volume competencies lots are AI where modality there that clearly an we've before in and looking processing. has but across very exams I platform as And environments and Well, the an procedure now we're very, our ability core to as AI think be helpful in software would have we example, using said normal detecting provide the

read trying is In you how find the we're could many cancers a only when your use more what thousand. to four to independent different could about in find it. is all in they tool radiologist of XD world, XD. how space, would mammography you when it versus per than population, find you accomplish interesting cancers and the was accurate So in screening a the What's now three

they're if So over the normal. And negative. of XX% normal, that not in they're essence, got exams are you've

a to productivity what and put marks realizing can when is the not so huge a to or And very negative you of on the it is the they're the we're contribution and is powerful workflow normal AI extent read radiologist. which that normal with exam

be Frank, to broaden do contrasted proposition is to to trying accuracy XD. of the the not obviously product normals. the mark to value secondly, the able to we're increase is what do, what So to really detection But we're trying

so the the And were lucky of There XX% exams. if positives to example. very, negative Very, the cases X% are or on normal In low false an majority you I'll you give any just world, XD of the didn't number. have marks.

are normal for not testing on lot product of as many date, done, testing version actually negative the we more to to we're there's a as working the our be with the and finding probably cases. of we're marking XX% future that the or With

validating So disproportionate reading negative. the it's increased or portfolio don't the AI it's think environment as so also about time radiologist majority capabilities, where not to in have you amount with about cancer of normals a that strictly negatives about detection, the broadening spend is of this

did than So we're are XD. of this those a to high are in is some what each other and contributions make of looking volume, chest Simple tremendously There percentage be country imaging are trying normal. at would amount enormous year that in done X-rays examples broader that we high we're modalities. chest X-rays. at much And

and be able not chest to being to as contribution a mark would real the the read find to a you'd obviously contribution trying X-rays So exam. that only versus make reading cancer normals

we think the looking obviously, I an that. contributions. do places as also could ultrasound. some ultrasound, at like we're in And make at of real So example, looking area breast We're

making MRI. based well. software detection the is to that world We leverage the detection and trying we're software based other modalities so in at lot of moment detection, the imaging areas types on have colon we're those cancer already investigations for experience some we've CT as so a in done And of and

a there's today. investigating in our AI of version are we're some and to get that places So product closer long our second not-too-distant as just us, closer and portfolio list of those opportunities areas for examples of future, concluding the are we

François Brisebois

terms lastly, in guys on of of you on this hill to to then your any is therapy, in any trying up just partnering? incoming be And thinking therapy own climb back is detection. terms strategy we if one? Or are there there maybe you interest the Should compare chance, maybe just

Ken Ferry

look think that I therapy, is they strategic with in global When believe we'd have I you us. at partner very, the to what to a love radiation larger very has players reach. complementary products

have the products. or in real have radioactive a they And essence, linear major those isotope-based brachytherapy players line we do large X-ray, electronic of accelerator-based with what so of a all brachytherapy believe to we They using most products and traditional high-dose obviously complement strategics. a environment. And source, is of

we really have linear if And that access certainly effort, also of So and products the not of in provide believe set countries to that together. broader market is a developing the and making we we technology where we are collaborate, emerging prevalent. think a lot the opportunity shielded could accelerator-based to markets vaults to we and

be would cancers. great types a technology for certain of Our fit

complement terms the at We're We product So Asia yes, partner, in both in in can. but the players, we as most the at this year, obviously looking major point, larger of terms we can't and resources. force major direct to as every can companies a field would as love the of we countries sales where talking opportunity. in ASTRO, do of all for Europe put well

are of very than we're companies, certainly we complementary us treating overlap between open in believe opportunity any there's interested and in with patients today. sort synergies working those we more because really how in So far

Operator

go Instructions] to Brian Investment [Operator Zacks with Research. We'll Marckx next

Brian Marckx

can might if if if to just how that product, study of in when kick-off, I reader that can about would and your Ken, expect next-gen there's alluded you kind you remind a think the us the that, it you you of, take. kind tomo on prepared wonder then you remarks. status guess, on long that, it, talk But and

Ken Ferry

Sure.

now, first right we the study, the and we're version, study, to submission. we use power took same would pilot study approach which then the which gain validate pivotal Brian, call call the to for we smaller, essentially is be product that we FDA the So taking would do we a a with experience what it this

washout, to have come the the of study. the I exams. radiologist XX-day go So XX% would a forget and balance of read weeks and in of read, now middle we of the they We're finished, the say, the in couple back where actually off pilot what

submission have very an FDA would encouraged completed. planning to pivotal of we've the And extremely least for to been reads that and month of do which parallel, we have be in half study, that product's are study say so to first And hopeful to which with completed rest hopeful in regulatory that put we at of the December, able what from I can able we what to the And We're performance. it that to the a we're next the examine, would we by basis a QX the we're only be call But need started away. year. submission. late in is get

the with said, so the U.S. I in something remarks, that have in in second to my year. think hope I said And opening half we of the

there's lines, is have to And certain lot has but determined the steps time we for because take, we that again to meet be and so all news our a obviously, if of version. FDA the the ago had with this we constructive couple did outline first second to the were they conduct We've a the study of just going meetings with with years version. good to good

to luck, to any but our have plan, QX according year. next large things very we we a or because with we're when the have done submission half, in the so hopefully, with And results early something ready of near if of a very, early today, toward already QX that's in very hopeful you current end opportunity in we've encouraging, and the second should have again, very But been GE. important term stand-alone the about exclusively very has think in testing working the us go

and XX% XX% or about represents both only internationally. domestically GE However, the addressable of market,

the addressable extent market, by the version of entire to the orders of to can our bring increases market. we So magnitude, second this product

Brian Marckx

close of long the until from sales Ken, the typically what it in the face-to-face typical with sale? found that the product length cycle the tomo terms you guess, I on the average, of in the U.S., is current first have current product in U.S.? of How

Ken Ferry

that their hearing, the and the we're of interpretive in a What have system purchase. for budgeted tomo often is year Brian, software customers advance

so, challenging little and into been expensive it expensive GE. Pristina with our SenoClaire current product seeing the that XD if fits the XD because a our the and more product again I for XD, mentioned that budget, And what product from more is a we're is than standpoint earlier that's the than is replaced

they orders the environments, customer get comes it do can quickly. their So PowerLook quickly the radiology new customers done those would since said And can have sense new cycle, we've again some that hospitals, for on additional XD the can exam to they of money practice license seen capability. make go our year need. have customers. they it an has the on And And how budget. the within the presented at then they've servers circumstances, to large they'll is XD some said the some XD next that year's And done or least In buy do really with add next funds budget upgrade of immediate in having being into existing down in in pretty they what added detection machine. other to months so they've basically XD, a majority of today to weeks some this it And are product.

less, quite we the product lot, What software. a bogged very map. close XD with low-balls all has budget has comes or transaction there there circumstance. So struggling And We the a the in and demonstrate one days for not funds funding the and we're detection honestly say down No else which often in sales in tight. literally can competition, I a when transaction is or XX if differentiated over cycle solution. the happened because is additional a is issue, is, unusual not would get really this an

try ultimately develops as so time the depending an ultimately, kind comes impact on the you And on price And that. buy ultimate that what to. what counteract budget sales a and what may have with frame of to the can customer's competition much cycle to they imagine, in lower is,

Brian Marckx

have best but the term that there potential you trigger? pull I'll had the is approved, cycles budget not bulk sales, renew that the say budget customers, use we for, the orders probably the does these will in some when when it's mean term, Ken, get for that essentially of of terms

Ken Ferry

pricing, they the into they XXXX quite a budget that customers say that us few it get will had budget. understand We've capital -- now to

afford So forward the and that budget, there's will moment. I customers can't had at no have come question, said it year's get this we've next into

So -- momentum see year it. mix to And that to to of mixed we if in an to not they out we'll what's customers for had as we it's a And software. see purchase budget have your the been terms the over of XD exclusively the purchased of should not being mid some the with mostly really market those get last upgrade XD, emerging bag ability -- have point to start nice of latter responses. the do I think the 'XX, part

a where go for version GE be it on today. you're storm could where market of customers could based available. your then is reaching the compared of And kind period then that's base outside product a of addressable up us next So into the to perfect serving because Xx also

the by still but earlier, and MRI Rich, bit quite this our year, to software of masked part really, us year that's So together, forces continue I growth to software. come reviewed our And detection in detection know, a latter base next it significant would growth all has the pretty been XXXX. which in these by hope help accelerate strong from largely I really software

So include detection we're an just you I minus example, up year-to-date, MRI, pretty does that take for product XX%. that good as kick in revenue XXXX. that factors those not at love we mentioned And our a feel as that will look

detection product-specific grow think as as I very, could 'XX So very this year-to-date. doing they're unfolds, nicely, and revenues

Brian Marckx

that a to charge a ago versus about I the decided that you and obviously the business? issues if and a why reimbursement. there take year Yes. it ask seem question in of was outlook you to context want implies the goodwill ago of Axxent particularly with it in that to business knew that terms that what for year would implies, It your anything, now

that in of year in context now decided kind just you say, it instead of it, why of taking to take a ago? So terms

Rich Christopher

did you that back particularly on here below kind it have there XXXX. six the reimbursement. quite baseline over here of most what's honestly significant was the what's relates time we been XXXX. that were goodwill, charge back out coming to to we've a subscription, an that when change have came happened numbers previously numbers take XXXX And is look company in over actually of been notably quarters as with set a out of So when achieved the although anticipated growth new And in four impairment that last the we experiencing as happened

our October and anything our as when up numbers we testing we our ended valuation we feel exercise we as And ran date an and do charge. use impairment move and annual through So not of experts, impairment went with X forward like it's we no, indicative here.

the out falling quarters, as four As continue we move showing are anticipate and numbers impairment goodwill on the weren't growth in them over resulted and we history would will to forward. show of a of old charge. short keep the steady last It's models the the slow to basis, coming we would quarterly which just that six that

Operator

for that closing Ken would to And our to turn question-and-answer the session. concludes Ferry remarks. I like call back

Ken Ferry

with expenses significantly customer software to and the like expand two, addressable strong the base cancer; flow forward; to Detection in reiterate volume expand PowerLook market Tomo to breakeven to going near Thanks, which to in to in lastly, version, manage treatment our launch, of three, continue prudently use of treatment global the one, next in IORT operator. In hopefully our substantially to cash the increase continue customer while maximize and and progress priorities term. on our continue make the to upon closing, I'd skin base XXXX; success GYN cash our non-melanoma will reach and market marketsl;

our quarter us when day. updating to With of third you these again like I'd year the call, full the thank XXXX results. Good remarks, for forward all look and to at joining for end we report we you

Operator

today's participation. your for We you conference. conclude That everyone. you, does thank Thank

iCAD (ICAD) 11 Nov 172017 Q3 Earnings call transcript