ICAD - Earnings call transcript Q2 2018

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Operator

Good day ladies and gentlemen and thank you for standing by. Welcome to the iCAD Second Quarter 2018 Earnings Call. Today's conference is being recorded. And at this time, I would like to turn the conference over to Jeremy Feffer. Please go ahead.

Jeremy Feffer

good and Catherine you, afternoon everyone. Thank for you participating in call. today's Thank

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

Furthermore, call I risks the conference risk and Securities any XX, in date content materially over the results events the results that with Exchange and no may management to said, Commission, and Before uncertainties limitation, review during ICAD we that of filings to made contains update to Ken? forward-looking only With the future encourage conference from the like call pleasure turn to revise is statements. August information the reflect my regarding obligation would begin, as that Ken you iCAD. caution of described actual call. contains after broadcast, without this call to comments 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

let growth not detail. I'll our an provide update in revenues conclusion Rich's that, joining with opening operating begin call cash XXXX. being as mammography gross to versus Christopher, afternoon, XX% relatively In us XX, and expenses first Thanks, weaker call QX for our expansion make flat anticipated me partner to strong we I'll turn year-over-year ended which the review OEM half product of key [ph] thank reductions financial financial some to cancer in and over has for CFO, then who the today. the begin on quarter Business business, and grew Jeremy. Good by progress I'll will the that brief first After for the were able our spite Rich quarterly good results quarter. everyone than you was the prior burn. and has with today's of XXXX. call saying weakness With results been XXXX, largest as of the anticipated, XXXX in over with first greater comments June questions. in on our in revenue, GE, the programs our sales been margin direct by offset significant second in efforts half detection in of XXXX. This stronger partially remarks,

strategic and the skin positive sales impact had on in therapy side our business to overall discontinue to offering business, has decision a brachytherapy of On model our service revenue recurring customers our subscription capital on focused had the our business. highly

update. XXXX, on in Importantly, product of increased latter the year. these XXX% of segment half first topics as sales business last of the six compared as months to first More in the part this

Rich? over the call provide to the Rich, turn will financial details on I’ll Now quarter. who additional

Rich Christopher

Thank XXXX earnings highlights financial you the Ken afternoon to like were disclosed everyone. in and this review Company’s second which release. good I’d quarter afternoon’s

the report to SEC specifics detail. the the discussing like will moments company highlights more to and XXXX for Form with As I’d quarter, you financial XX-Q Form the refer second I on only be quarter filed for some The ago. its quarterly our results second of XX-Q for of our

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

You decrease a for discontinued $X.X can be the there end It our a comparable the of revenue amount reflecting results a covered, of our reported should XXXX $XXX,XXX subscription. basis was our MRI will from earnings inclusion quarter million non-GAAP With On that for or prior quarter. specifically and of the noise total GAAP due a financial now to the X% numbers second is that revenues year I in reconciliation revenue reported a skin significant at noted find from of to release. summarize the of measures second quarter. operation

these revenues revenues adjusted quarterly basis increased year-over-year. from on an Excluding both actually X% periods, $XXX,XXX,

related Total on period by Detection let’s million, the $X.X revenue. the $XXX,XXX decrease or with detection our driven for service a on in or segment, virtually contracts decrease a the product revenue second decrease in segment at Detection representing was XXXX As result MammoAdvantage to totaled to entirely begin quarter million therapy quarter from The TotalLook year year product digital of $X legacy therapy were $XXX,XXX, TLMA. quarter. segment, million, revenues revenue and compared year-over-year $XXX,XXX were a $X.X by flat X% prior results sunsetting we XXXX a mammography the service flat detection the of our the Shifting prior our revenue revenue focus in examine service decrease was Detection. our second was to

so therapy earnings the year. successfully Once this did of calls, impacted on in and noise negatively skin that first year-over-year our previous has decided top comparison. the exit our quarter company subscription numbers in to some have created line business the revenue again and As detailed decision

Excluding in a controllers incremental was The or of revenue revenue in the XXXX. increase therapy impact subscription quarterly therapy adjusted of quarter by of sale $XXX,XXX second the year-over-year. of result periods, both increased in our $XXX,XXX adjusted the revenue XX% actually

business which resulted building as has well our controller incremental balloon are IORT momentum as We in sales in volumes. increased

XX% both which reflecting our XXXX, O-U. in U.S. and the fact growth is XX% XX% balloon respectively. In are for and half S. first worldwide up strong volume the of markets up

quarter as quarter, Both year-over-year. of net loss million gross loss for represented X% second over operating incremental as for was improvement attributable improvement $X.XX non-GAAP was sales $X.X second lower to quarter improvement and to of GAAP expense. expenses On were increase. loss by was The comparable in dollar primarily marketing is quarter. prior gross basis, This $X.X net net our $X.X $XXX,XXX the prior the represented share reflective XX% exit to a or expenses, pure XX% improvement a by a EBITDA operating The on of a decrease driven the was The percentage second the the year for from as gross the lower operating the was to million basis, subscription second our $X.X a of second gross profit basis, primarily million loss well $XXX, was the $X.X quarter profit for in dollar both the XXXX. year-over-year profit, share in from gross quarter On A $X.XX XXXX net quarter gross to robust a second As profit million profit year or the incremental adjusted year improvement compared totaled in Summarizing the net company's $XXX,XXX the this XXXX. for million compensation, and stock the dollars gross the in compared of period. $X.X $X compared per quarter XXXX decrease dollars. loss per profit second XXX reflecting skin and metrics, million business percentage million. expenses quarter profit for of the prior profit driven on XXXX XX% XXXX a of Moving as or of the

quarter second now March The of in on with begin a triggered principal will XXXX, As loan extension company the XXXX. month its Bank. Valley result interest-only payments bottom results the the six within of debt agreement line a provision company in of the achieved Silicon

are hand, $X.X expenses that in the Moving now This to quarter as that cash $X.X credit $XXX,XXX. balance the half amended manage of to Bank, XXXX. prudently cost we we X% the the A on in for the rate This continues remaining payment this prior and fashion result debt The It's second as of and of key much the same. our December the in the million takeaways million $XX Overall Bank. terms burn important performance quarter. incremental subsequent Valley hand the with quarter just total $X.X follows. the as company’s and XXXX has to XXXX amendment company exchange the totaled true burned a had to of month the the $XX,XXX second with that ended facility compares of debt company remains in once increased on its to the in follows. sheet, In for has again same, on very to the credit facility cash second of lowered, of XXXX up and XX, terms to XXXX final from The are that company million to have on the the favorably would covenants the We the partnership the inform acted quarter, amounts note to compares you summary Silicon we to trailing been company revenue pleased million of end debt as amount quarterly like to drive agreement with key year the the in we amend amendment. a the from the six the profitability. and towards reposition summary, Valley the facility. Silicon the terms are quarter first remains interest X.X%.

business. underlying We revenues in line the top our growth for are experiencing

X% half. Excluding XXXX from and revenues and are up the quarter the MRI for XXXX the revenues X% periods, and both first skin subscription overall for

quarter X% strategic XX% for is is profit second our dividends. grew addition half. decision subscription paying the the up skin of to first the X% and quarter for XXXX, Gross percentage In to the exit in and business

effectively quarter MRI lastly, reduction in a the the XXXX in XX% from for We which first And our expenses down half. sale for are our showing managing significant operating onetime a the were and burn. X% we down gain were cash are excluding

dropped in million. the million a first net year-over-year XXXX, million $X.X XXXX in from onetime in the half first million burn to half of from of Excluding of inflow $X.X XXXX, $X.X improvement cash cash $X.X

closing, in financial I revenue management line top highlights This the presentation, company to anticipated of is as growth we breakeven effectively Ken. plans – executing like the section over which top our by to is call the better include now back control. the resource head strategic cash would its to year-end. a turn which So line company flow cost positions along concludes This on with expected and

Ken Ferry

Rich. Thanks

Tomo which with cancer addressable to This me Powerlook Let demand for our our is AI systems solution systems longer product our addressable of mammography continues GE Detection all as Version so grow, today major significantly while to will market. begin our the term is it only. limited to is important our expands of market detection X.X of total suppliers business, on why available growth, be the the XD

now an X.X on Version solution. update our AI So for

the X.X Let's of a start filed last after the And significant PMA read study end the status. cancer software, this of was with cases Clinical was protocol read average the twice, our the read approximately they for looks The the of a U.S. May or and reading of with Reader after use comparative they the the comprised our XX reader the by compromised software washout, two of the results was XX X.X demonstrated used sensitivity our to radiologists call. the of cases an Version cancer it. after day FDA was improved to reading the cases accuracy without once at year cases cases, that XX – XD radiologist’s read weeks which results Study, using results of of X%. supplement The of purposes. detection most which quarterly when component same We mammography supplement study were cases. XXX the Version was The with

time detect or and using also an accurately when specificity of X.X false unnecessary accuracy the lastly reduction of positives case also the in XX%. addition, had patient performance X% a resulted in in average improved radiologist almost by In this recalls, outstanding ability average reading an performance X%. This Version in to reduction

study results Annual demonstrating more this radiologist full while in find exceptional overall cancers, more average presented their America’s will dismiss X.X time of by positives, November that greater be The Society reducing at XX% to North reading than the So Meeting year. per Version helps Radiology results false case.

after the our submission, responses. us had application, Now be FDA we approximately questions that FDA letter formulating and would We’ve the August of that communicated with a for list two our call, us we the are outlining like they months to little we to. our update would an actively that early received supplement. an receiving respond after one of a they They in on letter a week have a initial the completed call review to over following

We the to to weeks. complete response two our expect in and FDA submit approximately

addressable did with Density which are software, consistent up the of ExBRT base Also on with particularly communicated questions so the as in or focus in we opportunity growing commercially. feel on Version could opinion market. detection letter the our France, XD recently and addition progress make XD calls. customer portfolio AI progress of for still adds this Italy, in to concerns, to growing Tomosynthesis. our be outline Breast In fourth key quarter and serious countries for we solutions by X.X distributors This clearance X.X major there not Version using countries Assessment Powerlook the now XX% that sites and this received year, further. growing approximately of in XD confident number As a increases making Digital cleared are end addressable issues the we for that earnings causes prior timeframe systems our market we've recruiting are the Europe, of the of the good solution mammography leaders interest, workflow installed and to FDA we Germany seeing

and we Lastly advanced solutions broader to development a as investing of deep highly innovative roadmap detection machine a of portfolio the of software, as software intend platform, and AI on and and robust over based near to our development therapy and our skin Shifting well the update experience I'd an learning, on engineering efforts significant our provide will support businesses. expand to longer like term. on solutions in brachytherapy to our further this area IORT continue

the margins Rich a discontinue as on to our had and flow, has revenue hasn't and decision impact mentioned. service improved in product model led strategic business to skin Our to subscription customers trends beneficial cash brachytherapy

XXXX. the in as the and IORT was first revenue in in for same biggest months of revenues contributors period half skin the six therapy Moreover, were the revenues XXXX adjusting Specifically, the segment U.S. in the therapy year. the system XXX% business, last to over of subscription were year-over-year XX% up product up sales specifically To in first systems to States growing placed quarter, to the Increased the product year-over-year revenue more in end XXXX. U.S. and is to we I'd highlight driven those. by in favorable sites growth. breast like interest second clinical being IORT into well Shifting the and data. this performing United two business three the of is the compared

center The University, of in Macon, potential. full is the a the that Tumor offers network suite IORT the Sentelle products first Upstate first state second Xoft iCAD Medical State to multi-system New and the now system, Nava of the University Detection PowerLook with Georgia, this large from York,

we O-U.S the grow notified leading or recently O-U.S. Oncology, grow as Our continuing XX Institute continues public IORT to installed with and base we XX either overall Catalan Centers won a markets multicenter to organization bid of cancer In with Spain. our in multi-system have to a we regards treating GYN approximately U.S. patients applicators. centers that

also well. systems two half of India, of are as half they second expect system our first we the China year, in be our the patients completed this We treating in year to second have installing in first the in of installation

first And total the should growth versus patients We in at half XX% worldwide of XXXX. sales procedure applicator in unit X,XXX in also sales IORT as exceed experienced mentioned the disposable Rich first and half XXXX. pace XXXX of volume this

focused XXXX, markets Egypt, expanding the key strong in segment, Internationally. a cycle challenge While our both anticipate the this in opportunities U.S. the placements Arabia, half continued and on progress Saudi in the year We're additional in emerging remains of including time Africa. system O-U.S sales also we Colombia, second in and

and complication women low treated breast breast risk with median were to continued XXXX to results the Oncology previously of cancers Surgical months. rates of IORT Memorial cancer observed trials. x-ray those Annals a and trial as Presbyterian The of The trial of Xoft Local, a Oncology. of prospective official the the stage this XXXX, the prospective tumors breast rates the patients A the in follow total study IORT X,XXX comparable in was regional, the August Elliot the reported included System well of distant cancers. far Hospital, the XXX IORT June in site XX with of the in reported for at breast Hoag a in the by early As X,XXX of recurrence of study journal rates group of in published early randomized up of single support lower recently and occurrence from enrolled Surgical using low stage with the Society trial study use Target

in been we study the for U.S. of to with the X,XXX addition just occurrence the experts evaluating date of under of median early low stage treated treatment completed recently the two In breast follow our System use study cancers, up with Xoft the enrollment years. race have in patients

the results target over publication to We years. XXXX these adoption will for coming increasing of the half continue key second of to the be which

With revenue shift as of in the growing our volumes and the each base therapy recurring on complete, capital our are increase. business strategic treatment now site focused from customers increasing we

to interest active market the prostate, including in applicators and future. projects applications commercialize strong Lastly, new global have experience general IORT rectal brain, also underway we treatment continued in to and

the up call our should This near business. therapy please summary growth us our are base to our So our as increasing recurring volume through and AI revenues for With and detection the good install business, with future. in in X.X steadily summary new open Version as progress enable we accelerate believe progress Operator, we with worldwide making well our that software questions. procedure and

Operator

first Craig-Hallum from [Operator will Ostlund Per question come Our with Instructions]

Per Ostlund

everybody. afternoon Thanks Good

toward X.X, story a clear the thinking the it's we CE’s think of on going just any I seeing I'm is about XD their to talk little you for bit very CAD X.X, been engagement Tomo that on some are there's vacillation about moment more about firming bit there know jumping here can are but little selling strong if more to a trends a that it And or Version around you programs underlying exhibiting yourself? drive are XD’s I related is place to guess in utilize and they increasingly GE the Ken, I that, there a where be it's it, as that part, in then can As little you still you presence, moving when or in there, – put are more bit. adoption with can programs are whether put place you're suggested you interest there XD direct

Ken Ferry

news And So GE. there's say the I improved. you bad the with the Starting first at as of news, half of XD good versus sales look good have news with and which year XD mix range was probably this which in ended sold where of more in XD better the as often twice in probably was than certainly was XXXX, range XD. as XX%-XX% is we XX%-XX% meaning would

we thing of half of we business a of have in is year. in unfortunate So the year first not have The level we just last the favorable the from GE half volume the saw in shift. seen seen second mix that

taking back would think in corrective we their the And in softer higher market and and business so promotional can been as them getting a are has why, market, the demand, actively XD think in category, in actions unfortunate to what we is pressure with I extent, first with lot there's I competitive them good improve the several selling ever thing with programs down business much number iCAD in volumes, have a we're of So a so XD in and that volumes and that, have participating competitive are I the come we environment they’ve expected. of they're the the that half is mix to software stimulate but great of more only speculate a to and go I and systems a out what been increased challenged to making half for for goes likely by there. think pricing so GEs progress

of the their with more recognizing Detection stimulate to down, the your business, in XXXX, mid-year. selling in responding that of working question, to are as to clearly to of post the with well had approval to it's momentum prices three the average we them new various system time they that, recapture start try of programs yes, quarters as second come a FDA the that So have part the Tomo to final and introduction

Per Ostlund

much months that or of sense. placement looking had or last makes year? look better early this they sense ask just I at earlier have of maybe Tomo XD about too several MQSA do does pretty the like the the months I Okay, to every has you it over a been the thus months months placement if GE the know than is or – greater far, call, last it it some data, in the year success tell were couple having have any mentioned of

Ken Ferry

although It's on really hard barometer health a because very actual believe I lag, is I think really market. overall of I to basis monthly with a a the that important think don't the it's the of revenue tracks say there MQSA, one-to-one

you at what you they I month their where is really them at there quarter gives it to step will the if their just average, will turn to And navigate I one really has work much more to you think spike next we could a twelve smooth demand don't indicator, the up month GE about a how I steady support a think get point the the an is that to to really there from are side I it I look efforts, next, think So market months intense per be around pretty window, systems, forward, them it would promotional software some It's XXX There MQSA, quarter and firm attractive in there. feel call think it we and for hopefully, think with placement, as one programs, something out six for does you if for bundling sometimes. quickly good I even on demand, demand sales to or XD deals, a in going we're that's a them. more so price out. you been it’s then time. for to over showing with consistent in systems proactively where but our are plans look in

if will that here luck terms with consistent game my that it changes their the opportunity. in either saw that Version systems away that are the volumes a well of XXXX. said, available different any quarter we new would increase half is the as in what then we for case they So the size of of in obviously X.X addressable significantly is as or that the hope be with business being our second install with approximately for base market, With from market, us we compatible the and

Per Ostlund

as all QX would we're is a that's early perfect very to I too you any able had and have manufacturers be X.X the in maybe an sounds the on FDA compelling – having to you, is forward favorable approval? as like data perfect would actually compatible Version a with you resolution it obviously might discussions makes that That sense, question, that segue be upon are guess with so and looking well other that to my characterize next it to

Ken Ferry

Hologic the relationships compatibility we specificity is know that the current an X% what the more all study, relationships contractual have sensitivity so change mean, , we our you and the have, data sensitivity, with know positives. more I changing, the and that don't know people Fuji unprecedented false performance with see in in that specificity have will increase and outstanding. or GE equal and in the with in more we we and and XD. think the I reader decrease like is you have agreements Hologic to it's will study I introduce actually all we used Siemens, will Well typically an almost increase clearly increase because you to you continue

we're clear able essentially in the specificity time of able and exams. and including with of have be direct the the of read be United to have time for plan outcome radiologist amount increased from on unprecedented very sales and commercial on we're more year systems good OEM to the our increase toward Hologic are untapped, in there's sensitivity of XD the base or Europe big strictly very is back and exams job, of it a after in of to think the having timing XD to because Tomo doing the to timing, countries we read signing more growing the to Europe, product our confidence So large the installed a which of an objections once because half takes tremendous in in end efforts, approval, a major our our people distributors a base. base think base installed that we customer We systems States really go is new partners the all the they and go particularly to don't and installed the sales, one

progress that year, away us, quite honestly people Europe some participate partners of with months the been and addressable just will effort efforts a our now translate that by forward adding X.X, goal direct the commercial end going some meaningful revenue increase Version in toward against channel all into hopeful we're good add right making the we're So ultimately to and U.S. more in actually run we more growth, but in will going of we be market, and for that we not GE, to will that. in number need doing as that we're partner good the we hope long to able larger dependent be very we over from a who of as are has

Per Ostlund

ask two sense. makes do I have want I to to call but that don't Perfect the quickly. ones, here hog other I'll

was, to just you Ken some stock was just answer as So it general. but think your marketing more little stellar sales of quarter, alluded of in I lower in the and potentially like in that control last was the the operating expense form a in seems it compensation, and effort bit on to else X.X taking tick we is current level expect, breakeven the QX. expense approval your be the profile of there something logically expense QX I and maybe all standpoint needs of business? the up much get guess an might get that on anything you from the of of Can from thoughts just that Version

Ken Ferry

quarter, will is blend team, sense, Tomo but a the I X.X headcount I is probably all number course and just advertising, are to there think of in promotional investments going of to presence. on late training don’t some see one, More to business, early bringing a with be them, investment incremental U.S. need financial I going sales additional we're in Europe, Rich that I impact on of the third and to some sales focused we support whether that more will Detection having and in but tools. as it to distributors, particularly the see be be that and the fourth Version sales we coming general Well, to the be let trade quarter, say in general on huge that over going show answer that

some see Version spending. an really a really a not this that the to see there commercial may And In really the on dramatic And starting it. comment hits X.X we're side of that ensuring So I be the where in force Rich you’ll full take quarter incremental would full timeframe. that's sense, investment think gradual investment. when more in of and amount of you advantage marketplace breakeven of I

Rich Christopher

skin exit the business. than gross subscription ability our with to higher historically. been unprofitable certainly from margins they have we've Therefore get breakeven improved our are Sure to blended the

about the expense the break we're including point. current at projecting top for on remainder revenue $X.X even the of some this what for ads, base of is So the point probably line year our million the

Per Ostlund

I I'll stop. that Alright, one one then excellent. last promised Okay,

alluded your [ph] You to I than in study more I guess say prepared the – should alluded, remarks. HOK

in you've on be has fostering see think bit U.S. quarters that terms recent could there study data a the interest little as maybe And in how said intermediate more building what catalytic to even further? HOK disseminated? I curious term might in that the a [ph] be get to just IRT that broadly been of the side, the plans

Ken Ferry

study target [ph] months recurrence in eight you Obviously XX roughly ago. years. And we’re X.X% that's And at you've started back of Alright, that would range. I think years I at. they're [indiscernible] studies follow-up meaningful with the to talking into major can look translate treating being trials, where literally comparable well that medium three patients the think and XXXX, two HOK in got the now rates

those happen would I in five gold data say follow-up that also two years of patients Now the would recur the is that argue that standard, of XX% years. but first

two years a So our patient meaningful I and believe us had X,XXX that that I X.X%. something follow-up very like a I follow-up we helping just think with and at significantly. two years is like study of think recurrences own we're which patients statistic about is three-year In is XX

using I really patient the And to alternative be the So heavy many as weeks, rates proving right if effective six an extremely recurrence four to of radiation this a criteria, breast week. very five you're selection are to whole treatments low. mean for is commitment a as

more there think I that the offer one a as market, is then a that pick particular seeing So fit. patients, also And the to feel great in it they if others right well as buys competitive well. have facilities if to and treatment dynamic are more is and the option you this

effort. our will focused sales So we I continue with think

We have the out selling dedicated specialists product. there

catalyst the this time out, I if oncology on excited business, really of about with in the do. our investment should to as studies We publishing growing results help certainly we're need all meetings what systems and And of at place to that at the it the a this last bigger the as And is to that think us and our we the radiation market time patients as continue probably continuing this surgeons, it breast now follow about to really can point focus opposed as we on are optimistic oncologists in we'll year because for capital that major continue get year. we twice did we feel momentum. the the business. lot is track And time you increasing message really just many on right are We're to that.

Detection with to keep spending positive the the with company our signals Version investment on balance X.X, said, the going IORT. trying to somewhat with that have with breakeven that curtailed this also Now even the side to and to seeing we're we’re breast side we're increased with on getting therapy casual around

Per Ostlund

appreciate for it. Thanks answers. I Okay, all excellent. the

Ken Ferry

Sure.

Operator

you. Thank

from Laidlaw. comes next with Brisebois question Our François

François Brisebois

the the for promotional on Hey you programs? – in those you're Can the there just wondering making and answered sales help on up was and give guys, them GE are you questions. to was brought Yes promotional thanks I maybe XD. you bundling for taking more efforts issues the out the their with brought lot the ones. a terms side the of with previous up for some you color programs in partnership guys of helping and

Ken Ferry

solution I Tomo and the performance But across no Hologic good I that is the it's or XX-year And that runs product and a understand a detection a XX-year-old it Well that and differentiated job one does synthetic does a customers we XD has taking Detection think CAD. the poor. it's of else image capability. Frank tells XD have weak

a the can so term we differentiated detection, of in and with the have into tremendous get machine. more terms that customer solution. base more bundle true have of powerful we them And XD workflow. that has GE in The can information and the And and the we understand advantages performance more

we differentiated so near-term pricing, our really bit surveys, can can if proactively standpoint detection it decide stimulus want customer we've So CAD more machine we're use as to we're entity one the be them sharpened on well. saying competitive a the to you solution and and having performance be a these on in provider really and the business. you And From bundle. your we capability pencil later, to add more as you in a other believe trying more now really take the than a nice existing for together as a programs or on or XD as little going pricing, to XD trying to work could can that buy

goal. was more price. a bundling competitive sell we've not we're the more just far from trying a off a and from That's would say So working solution product I have really coordination to And with past. the a in think transactions since introduced, bundling the approach bundled it we a way as never this to collective have really the we'll really from team. at more but standpoint officially That's been a what strategy cohesive differentiated do customer in to to trying we

François Brisebois

the them? Understood, you go And mostly that terms for with Study, in wouldn't and the then for in to resonate then way, of them sensitivity same specificity Clinical and medical necessarily a because it time of reading or expect does really you. sensitivity, X%, X% the specificity the the cut the community thank Reader is resonates that half

Ken Ferry

looking rule we're important in which the historical could it's software in of on I to show you above. has getting you're with think spend you nuisance specificity. could historical on honest, and all be in if with Frank, at is them a more improvement increase versus always that non-inferiority is typically we had claim really to your X% XD average what And time for looking very had And and be really, more you'd specificity new compromise software a a get ultimately to not we terms in where almost with claim a out. software, superiority a more marks been Typically you a sensitivity, comparable sense exams, have X% accurate obviously The fact number. is putting marks increase that's and normal a because actually ultimately, the typically significant. which

algorithm XX% of are the detection So of depending anything, getting putting to not dramatically We're to zero normal finding false vendor, the marks. you're you're testing that get excess standalone compromising sensitive number capability an more with off with terms exams reducing we're and the that’s that marks. of the marks false by extra on starting sensitivity. in is If XX%

helping find radiologist get is to which you're thousand. you're cancers these in to them or four so going is cancerous, but Screening not helping normals, very tough only And population, a you're important. screening to per just the find through population, three

to So marks to on not by the normals putting a having exams ability XX% help get is the validate plus. big, to XX% big of the

the specificity, you specificity extremely that increase tool, an having market. XX% it without dual I It to is hope in product, of sensitivity. you to sensitivity in And the both of the then will product mean, reduction benefit where So increased took get the this we think believe three those average of benefits will increased what help days, as those reader of a get all to in wouldn't really greater than they of old and adoption. decrease a in as great study. and really We unprecedented differentiate be are time read in reading with with metrics typically exams this these

François Brisebois

Understood.

to the we’re Version the it in the impact the when U.S.? just quarter. happen If trying potentially then just And U.S. the great. X.X seeing fourth see the market we're the top to line to difference versus Okay, and could in then here EU. U.S. in being what the here. in ex-U.S., trying happened hoping it's terms What EU the in translate is in I'm what of in see

Ken Ferry

they're Yes, all, is first different of totally would markets. Frank, say, I what

probably in all sites was care And which you before the of right? finalized. can read mammogram I about case the be by standard health screening in why the used And is only one most rather think adopted in margin and So to that on which most to it normals, Well, Even would of five care. protocol normal XD gets do still is if read done countries. radiologist the of having was the radiologists labor-intensive, right? screening it was never out United in say reading government, sites. the in would and afford literally, used CAD EU, U.S. Two when protocol that the the two of Europe we the Single-payer of to the all that today the is States, had mammograms

of radiologies and software exams, luxury as honestly So important quite being had wasn't the government there. because to detection these the employees read you time the

one of have of forth, detection didn't those liability malpractice reason it United because which, the so does is also and in the circumstances. You issue help the under of unfortunate types software and States taken off again,

different basis from a have a So standpoint. market totally you

in and And with screening mammography. handful for not of Europe XD XX% States, than being the other private in machines. fast tomo is growing mammography screening a bringing the XD centers. you're now is done In United used today, So of now probably

hence, that yet very for have phenomenon tomo and, very, you Europe, you're volume of not in using So don't exams. a high

diagnostic on it cases. using You're

small using I So talked then on it historically, going think a if slower. about and that the rate to phenomenon number in XD you is of adoption be you're cases about

KOL the you centers, have this You build prove of be have sites, benefits all reference to to the build to have able to you technology.

of. And using putting screening which really to together is to multiyear the a software of save part an so in each believe, CAD trying billions that they're benefits going they reader actually they're a be quantify protocol, using just versus two cost. example dollars them our trial, of And as detection The Netherlands, year in radiologist and could,

of types solid And all so that market sites kol build putting doing studies will very we're the very, those a together gradually opportunity.

issue the and increased that liability forth. litigation, of detection so contrast of U.S. standard became software the and now And every you where benefits site of contrast So to years detection, for it you much the in care a now for XX uses So pretty XD world ago. the

an different and And at And then contrasted a the of type very incorporating it's this now but part site that XD. And they data use substantial. markets U.S. XD is familiarity detection forth, bring to they XD, product is learning time in of benefits so and the it in looking you' looking to look a not adoption familiar environment per in the technology, with, at workflow. as XX at so AI-based overwhelming tell be radiologist we're of we or reimbursement bring greater faster. very this the version, have a the amount four dynamics been are when you their curve We're XX you of slices much takes is The kind and when breast. where basically much, you, will addition they've every a should to static of that, have substantially in and amount for of different

adding as as increase mean, is funds. their up under could is, tool the that find substantially, The it cancer versus I half increases productivity goes sensitivity one have capital in in positives model, their business reduces and So capability that the if false they bring read sold you them the the you product them detection the allows dramatically. a is to challenge, from to always time, benefit

to day money I to expect possible will have budget six-month all window, one, a XX-month on So it's in tool customers to with find a the buy ends market go installed in or don't I base purchase the the the going system go to to today. that new funds the this whether they’re is into add we the to every over a capability, their But customer think without product. using

growing market, that three customers tomo do they’re So you And in in be it's two And know the totally the for whole to as the quickly takes the said, in host take for with things use screening certainly, number Europe. again, But budgeting the discretion. U.S. of because new just mammography. very XD as will mammography faster. a more hospital different in number to longer because markets, environment, the find lot strictly across world, wanting well U.S. in time U.S. opposed is is get dynamics I modality probably ultimately, that a host of screening have it's practices the radiology imaging a capital world in larger Large times to they whole not XD of to longer a they're a to literally mean typically plan and that strictly with any cycle. say we that the adoption customers funds. systems as market have much to to significantly history tool, bigger. are With a have into budgeting the need

that XXXX, doing U.S. is the market quickly. really So market in translate we we're more European progress But now and that dynamics and much, XXXX. there in sure. summary, a environment a I making could curve we're going do probably XXXX, mentioned think right the in much the the move learning until it revenue believe in would seeding What I be that we're I start we're today we say all really substantial for to I'm early meaningful opportunity. have sometime accomplish not to and to

François Brisebois

Understood, very you Thank helpful. much. very

Operator

Thank you.

with Our Tim comes question next Quinlisk Capital. Colrain from

Tim Quinlisk

My for guys. Thanks have you the been update. already answered. Thank Great. questions actually

Operator

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

Brian Marckx

Hi from in changes your spending businesses affects about And headline Ken, improved recent that guys. could I’m care that the GE? in spinning if sense, talk QX. your some relationship with that how off Congrats of the they're recent relationship health – wondering and a business. on profitability with affect you could looking they can terms corporate or GE given the the then off

Ken Ferry

struggle question, I clear mean a answer. have it’s a good I really Brian. really to

attrition part it mammography business. like think things it's the hiring that group. much of a larger for do health not clearly, me part that just a that might really I business, little the And there's in larger conversations your business it's get is to when think having and be replacements might much bit longer sense care I the a is clear an impact of and which to a field, you imaging on so that taking approvals from forth.

really of what of think or think with. in spending how on maybe little we're more do it's terms move the core maybe has dealing become don't But cautious they quickly things. I culture some So the bit a I

I shift into more market. I that they we're much market, to quickly strong. a competitive out it, dealing has I on think it. is that a rolling have But probably very to that what of to price are think programs market working now they address move the And hasn't adapt core GE much been knows speak is business why to our and more with as as

the that having improves of I I an But much think strong and we be book over XXXX that is the of would the from hear. entered with hope order corporate this very year impact a rest with really course my them backlog. So the activity of what steadily don't

Brian Marckx

existing existing the would installed you launch? what percentage in base of would density to time the the In line approval, And breast terms to anticipate of product? upgrade expected density terms then for your that breast of FDA immediate? base, the what's installed Is be

Ken Ferry

in product way we're is density. natural seeing our software. to this Is XD a today the adjunct Well, this detection

the a so connected the the to either And XD so and that XD images connected XD density modify detection relative today, can can what XD have exam. only. whether to the we've obviously, ability is essentially we density do software machine in prior to exams to the you're that product, what done image, to machine, And the perform it's XD sense or on synthetic assessments or a it announcement,

going from we to be And the standpoint leverage, of you in when with the so market are sell around on think that that workflow all providing is can detection the companies the with Version that both we go will, a have X.X if exams. as the the as density really cancer the solution And does well machines. and in assessment in density XD a XD we XD detection

and lot a revenues. will play out X, significant new version get this to there think I more have software So a once our we're Version really of with contribute will our density to opportunity more

both is leverage I that on customer And in solution the X or available that as was Illinois to moment think with adopt by But from XXth us. GE the so can both holding state I means. density the real be think, of today. going with country as well detection, density product on a It's back and software and out at the buy we a reporting. They go product sale when we're not just out that on systems Version software any to announced, State the the really bundle to and legislation incense is Hologic today there for

continues product. with to that density have particularly to It's this going to is X So a but ability of hard very relates we early XD Version hopeful we and think launch along lot get clearly, to X, this would mid-QX. to trend of immediately. so as play, the And to be Version the certain, our in we measure are it

would radiology in clearance be to of November, And with that. would arsenate audience to we enhance in largest place. ability And that our the prior really, FDA obviously front world. a the really had it ideal being in our if product have market late the plans in We

Brian Marckx

in on more and then into me many in We're sold the on a of quarter on not And We systems that for Brian, thirds substantially breast I can how reflect breast? basis. of probably say year. a of were were I breast sold And say And But favorable they of general skin. a just has getting would all so systems is of units in habit, would product the quarter, our we're it mix that therapy, is last and what from you coming tell about revenues third been it. and the two skin. in momentum in quarterly ahead obviously,

Brian Marckx

Okay, great. Thank you.

Ken Ferry

Sure.

Operator

any questions, no I’ll With back to the remarks. turn management closing additional or additional floor for over

Ken Ferry

Tomo And possible as revenue later forward. the to this as going our In priorities as the IORT reaching recurring procedure businesses. also with in success in in year-end. by our increase reiterate the customer speak Version as and in Detection within market prudently Maximize continue We're to and today, hopefully, flow our patient U.S., software like to goal Europe ruling the capital and we out base skin corresponding we X to cash PowerLook and cash closing, lastly, manage of our expenses volume I'd go our year. of breakeven brachytherapy then

for the good of announce we us day. forward So with Have third when XXXX quarter our and quarter we join results. look second we you our that again pleased updating quarter to call, end conference are third after today could our that, you a

Operator

again and Thank again today's all conference. concludes gentlemen for Thank participation. your does you. that Ladies

You may now disconnect.

iCAD (ICAD) 14 Aug 182018 Q2 Earnings call transcript