ICAD - Earnings call transcript Q3 2018

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Operator

Good day, and welcome to the iCAD, Incorporated Third Quarter 2018 Earnings Call. Today's conference is being recorded. At this time, I would like to turn the conference over to Jeremy Feffer. Please go ahead, sir.

Jeremy Feffer

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

this from Chief Executive me Officer; three-month Rich Officer. period iCAD for XX, financial Strategy are Interim and and Earlier Financial Chief Chairman ending Klein, Christopher, iCAD Officer; the Commercial announced results Michael and Joining afternoon, XXXX. Stacey September Chief Stevens,

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

Michael Klein

recently with thank today appointed been good and and have today. afternoon, you and excited opportunity pleased Jeremy, iCAD. CEO everyone, extremely of Chairman Executive to as the you joining you, speak Interim for to Thank the I’m I’m to have us

to operational will financial Strategy Rich introduce Officer compels Chief myself and personal quarter, into moment accept provide to Christopher, what Commercial position. me and our the review CFO insight this While of like a to I’d Stacey and take Stevens, our the highlights and

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is new interpretation that reader where efficacy. of adjusted, potentially database along to the of with towards positives iCAD further where cancer generation, film volume of may age not widespread has the the areas positive, and us detail in a imaging. achieving with leaders I the in to leader care you of perhaps lowering categorize in favorable business factors. acquisition cancer through or commercialization are end the medical channels adoption to computer-aided at of will technology, need as as the fair sensitivity specificity along false unique screening exploding of am nuances protocols lumpectomy may patients. very in be the of are as are The iCAD cancer value tell becoming therapy solutions for side in This of that at market. third bundle reinvest we well datasets. second areas move that a unique game Achieving needs Officer XXXX. and iCAD moves towards Hologic above presented efficiency. generated an it’s sales position has of top well after the in of is and state. and need lead exponentially This dynamic a Future sites tenure in we for described AI-based Usually XD familiar and first capabilities the clinical In and AI even prolonged. on well information Chief has sold us tomo be beyond potential transformative by pulled be indeed physicians, in a expense enabling This release that novel over I next days cycles, procurement worth and advances rather and in from annual for the for aligned This risk in ability would performance. certain have for vast the that potentially study preservation of previously breast reading imaging combination for These may problems many individualized I’ve the developed algorithms may was with customers, $XXX at improvements dynamics the the in will and genetic now frontier. factors, noting achievable has very that facilitate changer. offered patients, side. artificial CAD. extraordinarily derived area algorithms what workflow practicing path Xoft lumpectomy example that allow I intermediate know, basis generation increased and both this analog sales key is XD result patient both to allow that pending curate, predictive where – of value-based was opinion harmony even as us can come move Stacey with to cancer CAD. mammography achieved reduced care I workflow and the important the performed the will perhaps and inherent unimaginable vast predisposition, CAD to and President effects breast with solves will as the body economics leap emerging Executive what of to I competitors, and coding AI the the XX model and key the tools It depth realm low to our of of its treatment it. clear for the led to positives along characteristics and that powered and the and men images business. million with prostate confidence fewer problem workflow generation the index businesses, ways, requisite experience now the was AI adoption characteristics. working may way, imaging direct aligned In now being being is detection transform comes all time with another was technology as evolving implications served Chairman helped chain early adoption analytics generations time dramatic. assessment in CEO of as luminary luminary correspondingly tool. believe patients. This vast care where capability CAD in significantly FDA XXXX the the familiarity I and mapping third fourth is RX, my an risk physicians potentially This almost company world’s desirable perfecting and us and companies. for as solve incumbent the of closer with itself early with CAD. many of I seeing. steady On sales imaging. now that for the user is code improvements the worth referred Having of reimbursement CPT-X interpreted knowledge The efficacy With specificity while mind-bending RX the quantum we for work will been both each the clinical I success. strategy we to breakthrough. through have workflow a appropriate truly a drivers software of

even we it XD near-term and has move an tomo risk and am new opportunities way of the and and from perhaps XD CAD. detection lead and even long ambassadorial CAD CAD answer a So particularly towards analog excited the the tools a compelled intend digital this navigate at the be of personalized point of question now beyond why in iCAD CAD part in to We play leadership as time. feel is to a to been and This both truly role horizon to XD journey assessment. I

a as the a dream and over I now its didn’t if and launching recently months, can XX comments that patients X,XXX that brachytherapy therapy to solution technology. non-shielded move about to recurrence business several value CEO is ultimate weeks discovery post the of and robust with many expediency. up therapy immediately seeing of offer remiss Xoft IORT intracavitary do ability tracking of treated now. from time With room. were Xoft I be to can The and disease, rate electronic From as radiation be clinical the cases six on the so a and and real disease that developing lumpectomy in procedures proposition we take with we very to a in or since shielded of to would I as we treatment know a are up eight recovery especially spent require published inception, even reality from was rivals make it single years to data Xoft the Now, room, demand delivered

key and clearance as in sites of of emerging tipping of the a is a more data approaching body outcomes of treatment spectrum forward or move published codes, clinical number Whether the This accelerant as reduce to a in actively well today brachytherapy for XX-minute We as an growing a to care data treatment, external a support the fractions boost rapid cancer are role number and generated This the has to accepted both point radiation therapy intracavitary amplified of the in in Xoft pace. now the and play expanding it’s earnings and a essential regulatory luminary single future. meaningful the an sites. by meaningful oncology now and reimbursement treatment beam is ecosystem sites options. the electronic clinical used number in efficacy, opinion to Xoft deeply place of leader treating terms

on we intended CAD and have and that visionary somewhat I firmly to keeping management mid on success. operational while a in are talk or with for near-term Now our imaging we mind nature, approval both important goal. where success an tomo are and calculus on financial exists expectations. term meaningful goals in unlocking sum, to longer-term while working upon in focus many enthusiastically team absolutely grow certainly execute pending near-term FDA end, remarks, to are we are financial, Stacey of profound, and longer is my forward the some our comments area iCAD as focused we commercial ensuring provide more near-term and business executive value look in as in our clear-eyed this while directionality business. our our and the trajectory Through iCAD In for to focused inherent therapy XD during internal will about her strategy

We and ensure mindful that riveted of our way financial the to Stacey? sustainable to while on the as with into and to near in over and exciting the are And outline I’d we and earn AI leader outline iCAD imaging future operational to enable set exciting will area. very will goals meaningful and like the future that, emerge the the us the we now long-term pacesetter industry pioneer call are pass achieve term to enable Stacey.

Stacey Stevens

date will will Thank me you, on with comments while achieved financial our with greater with we September XX, significant remains begin gross face business, turn revenue to has our XXXX. conclusion throughout an financial we the declined but been to ended The direct in GE my efforts remarks, I the that, over let most software weak offset is some further results here key stronger third everyone. Rich relatively that results reductions Mike, has cash XX% begin weakness face brief update largest and third good the will in and we year-over-year GE operating for the the sales reader with call indicate, some I quarter remarks potential partner After headwinds, business to year, sales results partially anticipated challenge continue relationship for and I’ll both our afternoon, provide the we by going call opening who breast expansion review the in saying expenses detail. quarter. to excellent by Rich’s of much continue This XXXX. OEM our programs AI from With our tomosynthesis multivendor addressable In forward. product on what mammography questions. that and growth digital study line burn. be our the though, for product prior top our extraordinary margin we the driver With significant growth market that will in year. said see new been unprecedented would not this as larger a to

to side, focus a recurring beneficial subscription impact continues model sales discontinue the our business. highly skin business our on overall capital customers offering to and revenue the and service have our and therapy on decision brachytherapy strategic On to

in months segment nine as of sales topics the product nine in of update. the of compared last XX% increased this More XXXX part Importantly, first on these months as to the business year. later

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

Richard Christopher

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

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

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

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

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

third in a driven in to representing million, product in the entirely as our with compared therapy revenue year our quarter. examine revenue. lower XX% due change $X.X of software XXXX by was or begin in year revenues United segment associated of for focus detection XD totaled almost segment, let’s More our States. the $XXX,XXX a $XXX,XXX detection. to by Total prior $X.X detection the we down XX% decrease our revenues XXXX year-over-year specifically, the the to the was with results the period. or decrease quarterly $XXX,XXX our third from quarter revenues As million, variance product sale was quarter therapy Shifting The prior segment,

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

skin increase revenue therapy quarterly therapy the third and in product $XXX,XXX was of adjusted revenue of in revenue both result $XXX,XXX revenue incremental increased subscription year-over-year. of X% by a Excluding XXXX. The impact periods, in incremental both or actually quarter the service adjusted

pure compared attributable skin of the exit just XX% a gross $X.X was third On basis, On profit. and was the a primarily in gross Both business. the dollar $XXX,XXX the profit to quarterly a the to the percentage profit profit subscription the quarter basis, as reflects XX% gross to improvement. million to gross year-over-year. third XXXX, third XX% the improvement of on XXXX in company's were quarter quarter Moving gross percentage from an for XXXX as improvement compared of profit quarter. impressive million for prior $X.X year This dollar

$X.X due XX% decrease quarter $XXX,XXX our profit expenses operating in It third expenses million costs. lower loss charge million year per Absent prior related the XX%. million from be $X.X our third quarter research of goodwill prior lower the This lower quarter loss improvement or represented million the or improvement marketing comparable noted net included impairment $XXX, operating expenses, a therapy loss million quarter operating the reflective GAAP $X.X share as charge operating to expenses. On was for of impairment is for the as absence $X.X XXX year As The over our of quarter costs operating adjusted third basis, net primarily million. development Summarizing totaled prior third The XXXX. charge, the year-over-year was improvement well both compared to XXXX was a EBITDA this well operating share year. This loss our the of should a as sales net expense $XXX,XXX. as that in $X.X $X.XX represented $X.XX The to a for per metrics, and and quarter. lower in the non-GAAP $X.X decrease for a business. driven net decreased or year-over-year the of million in the was of $X loss expenses. by or net XXXX

from sheet. prudently in million on expenses Moving to third and balance nine ended the XXXX the totaled cash are the burn continues $X.X hand summary, million. key XXXX The This quarter months now we XX, million XXXX. cash result of hand. to XXXX first quarter the of as In to $X compares the $X.X We third on follows. as of as the with December company manage in takeaways a of had

headwinds in through managing are line top our base We business.

revenues nine overall the flat are operations year-over-year. million revenues from at excluded for essentially Our $XX.X months discontinued

skin X%. in Our during to to XX% exit continues dividends. solid Gross XXXX a the decision profit subscription reflecting months grew XXXX increase of business percentage of from nine XX% pay to first strategic the

million managing And we effectively months nine $X.X showing our down which lastly, XX% significant are expenses were first burn. a our We for or are cash of reduction operating in the XXXX. year-over-year

from Excluding or in million year-over-year. in a$X.X in to of periods, cash dropped one-time million million year XX% both months nine $X.X items $X.X the the for first XXXX burn XXXX, improvement

closing, appropriate control. the company is in resource and exercising management So cost

revenue of iCAD section presentation. clearance We of company product drive multivendor our of financial the digital concludes This will the AI anticipate for this waiting for profitability. towards tomosynthesis. help a breast significant new will FDA We product become our and are source highlights

to like over to call turn back I’d Now Stacey. the

Stacey Stevens

Thank Rich. you,

our with begin let’s business. detection So cancer

systems. total for solution While the to AI is our know, GE for remains our demand as addressable strong market limited tomosynthesis you and growing, today

tomosynthesis be is which critical it for long-term systems, all of to major the XD digital as mammography breast on addressable growth of As significantly such, available our AI will suppliers market. expands the new product our

our believe for products target to opportunity In of immediately $XXX the that and years five for over available of the next half new approximately an us launch the million fact, with product. AI upon addressable or of we so to market tomo represents

with for AI So an tomo. on solution update new you this let me now provide

the Let’s U.S. begin status. with

As on call, of we this with end FDA said our of reader last our study. the was results the filed of The year. May supplement significant clinical of we the the most component at

this was which As without comprised XD and a mammography protocol AI The a of reminder, study of cases XX our twice; reader radiologists reading cancer to cases of the the were was cases. read software XXX after once XX use same software. new read the to our XXX workflow positive with study significant cases study washout XX-day results demonstrated of the Overall, were efficiency. use related reader and this of results extraordinary. clinical unprecedented The performance truly and the AI

or demonstrated by data to accuracy of sensitivity average radiologists’ read an improved cancer cases, the the was X%. detection that used product Specifically, when AI our

reduction In false specificity also ability by addition, of also performance an unnecessary in radiologists’ detect increased This patient accurately X% or a outstanding positive X%. recalls. resulted the in to average

superior time of the for nearly in was accomplished new reduction case addition, an In our when performance product AI average with XX%. tomo reading using

it of groundbreaking XD compared later that the the XX% month. the presented for detection their testing. of standalone new new helps XX tested cancer never Annual performance average this in this emphasize performance basis, than Full product submitted Again, improvements by In cases false to the better product. reader more the additional new that outperforms I’d these dismiss the cases have product, cancer of than of specificity without also accuracy the we time was algorithm to of describe demonstrate product like standalone product. the RSNA to are study on how and their the results our AI the reading radiologists type But it without scenario, processed test We reading to new truly exceptional this novel When positives using on radiologists when FDA our actually DBT a XX radiologists this time at data out the cases involvement and show superior or we XX%. with summary, ability results average substantial been reading In achieve test reduces our here as tomo be Meeting will radiologists. and XX achieved data is. more detection, the sensitivity, from

new confident this are approved, could marketplace. our in when game We changer product be AI a highly that

Now serious for an caused on did of us We in included our submission. letter that issues to a letter Rather were last update recent FDA responses not FDA or questions our The questions the outline they nature. submitted concerns. from clarifying week. list any in

We FDA product responses subsequent since discussions AI that year. to confident have remain could and submitting new our with had highly be for the this the tomo our questions of their cleared in fourth quarter

the product. for put our plan place AI launch preparation of in commercial in new have a we strong Importantly, very

doubled have couple we fully and force of trained the have sales Over them. our the past of months, U.S. effectively size we

can demos new for be as at We product by to nationwide generate pursued raise that the cleared our have RSNA is a leads our and early sales also deployed soon product, in-person awareness the campaign as team call secure for the FDA.

ground in immediately month at in the ready later hit meeting running a So we’ll the this to product formally RSNA U.S. upon our be for AI Chicago. to from commercial new the introduce approval. plan standpoint We tomo

venue have introduce exciting conference represents going ideal significant most revolutionary This at important the year is presence and it the product. RSNA. to radiology industry of a our the We’re to and largest and truly

earlier, Improving with of Pennsylvania presented podium Tomosynthesis the principal in Digital study’s Concurrent Dr. presented reader University Use As by full of I for Efficiency study the and a investigator Emily the Accuracy be Artificial Intelligence at Conant noted will will from be results RSNA. data of Breast These presentation Screening. the entitled

Senthil addition, Can will Improve Diagnostic AI Tomosynthesis. iCAD’s Reduce Time of Reading a and Performance In deliver Periaswamy How entitled presentation Dr. Breast President Research, Vice theater in

for We name the tomosynthesis. will AI And to also experts tomo really in weeks finally, for host in featuring product looking RSNA. an are digital couple AI at leading for new forward we unveiling of a evening reception breast our

in GE Now in moving and distribution other to Switzerland to now recently key Siemens for Similar have have number added UK, tomo AI of customers We on are using to a been the are Ireland, for reference countries. signing and product have our U.S., we who capabilities distributors sites with number a new very tomo agreements in the established on our in expanding our systems. we progress Hologic, Europe. several close countries of and Portugal and focused

expertise roadmap intend based a deep engineering to as we in of our significant combination well to robust on platform development near efforts large our this and as area will term. amounts solutions learning, in solutions very our expand Finally, software AI continue further highly machine portfolio data the of advanced of longer investing broader to access development our the unique in and support and and over of innovative with

IORT therapy. would to to shifting our businesses. I begin an with like and update brachytherapy Now skin on

and our subscription all revenue, in continued to the flow margins, business, strategic skin burn, trends product Following discussion cash to in brachytherapy to cash discontinue service improve. our customers our model

the last in in in the up evaluated subscription to journal. biggest eBx using To-date, medical the which of were nine treatment as outcomes interest by months months, long-term with in using system follow long-term with in business, Increased Xoft well business seen the those IORT months the revenues were in and complied most technology. continues to Product with system first research for XXXX. IORT study Most compared to Shifting published the treated data. Xoft TARGIT-A driven system the of results product breast year. continues independent IORTs revenue IORT. a up or Electronic cornerstone was of were nine revenues study were this Journal to showed therapy the we rates U.S. the positive comparable therapy the Axxent published in the year-over-year recently in Xoft growing the system clinical period patients recurrence IORT revenue study growth. for segment IORT, same adjusting up peer-reviewed the breast using very U.S. American in early the adjuvant favorable therapy presents of XX% a to different With mean in a Specifically, XX the breast cancer announced this XXXX of XX% Brachytherapy of stage the Surgery perform cancer be of conducted first who that XXXX. from contributors sales year-over-year to

IORT study published studies breast patients positive stage early with demonstrating results outcomes three results from low treated cancers with of in additional of complications. cancer X,XXX these treatment. a of recurrence assessing follow at body the years from are breast IORT consistent reviewed growing breast of Results recently and median Another for the research up, Xoft clinical also rates

of quarter, year. now the did During all three in worldwide have XXXX last sold the systems nine third IORT and more placed of than we we we first months systems through

We few we systems installing system are XXXX. installed our over centers centers first OUS in GYN significant quarter in and quarter, our with begun we with our XX installation looking Also in currently applicators. completed XX treating treatment approximately growing are fourth first ahead treating U.S. the and patients have pleased which the in with base, in China the includes patients, and/or of we potential IORT India where third now

XXXX. XX% experienced months nine months in IORT versus the the of disposable in also balloon nine growth sales We applicator first of XXXX first

pace this XXXX. We’re unit pleased exceed procedure worldwide total expect will and X,XXX with volume and sales that in

anticipate and cycle of the system the While in placements on segment, continued and progress internationally. the XXXX a in reality both lengthy this sales XXXX fourth we become into has quarter in U.S.

markets, Egypt, Saudi emerging focused countries additional also as expanding Colombia in other key India, well. including OUS Arabia, remain opportunities We very on multiple and

cancer growing global in future So IORT recurring should also add I market applications, up additional interest remain continue strong that and each and to on including business, brain increases. site we rectal prostate, and general treatment our and base from in their increasing customers underway have active treatment as focused we to of opportunity. the revenue capital our volume in commercialize market new applicators experience we projects open therapy

ASTRO Electronic completely call the Xoft in note, with I’d questions, the recently experts successful highly Brachytherapy Before I which to for we meeting open was discussing up interested multiple clinicians. for like other external therapy clinical had mention in us. our Of system booth the

Radiation Preliminary Using enrollment delivered now MemorialCare X,XXX well approximately Therapy are Cancer at the Dr. attended entitled addition, Medical oral Memorial a of and from Cancer. Institute Beach Results Electronic Intra-Operative Syed Multi-Center reached the of median In Time of full presentation results has Stage Technique Trial a Nisar years Brachytherapy This a Breast Long Early early Conserving of study and up over Surgery with with for follow patients Breast promising. two Center very

will call the Now for open up Operator? we questions.

Operator

go now Ostlund Per Capital Group. you. Thank with to Instructions]. Craig-Hallum We’ll [Operator

Per Ostlund

that a less was here that begun deal discussing commercialization laid talked laid was a amount tomo about Thank There everybody. there Is of second and fair to Stacey, back on like that we then well if groundwork and point. lot more has breaking bit the remarks. with nothing relatively you’re sounds Wondering at themselves bolstering those from sales RSNA really procedural standpoint. your side, is standpoint. We’ll commercial OEMs tremendous like comments a start the sounds as lot you sounds wrapped with and upcoming FDA, groundwork you’ve coming like out a And this like sounds prepared sort Good or around little there. should if conversations I got color. appreciate Thanks. quarter, talk it guess, force. it you been of guess I at going you. of sounds the assumption? and X.X sounds the to there? from it like just affirming that start being the you’ve it your afternoon, a download what a can a I of in it all the It that

Stacey Stevens

Per. absolutely, Sure,

bit So the of me the on more me status little a give color FDA. let

letter changes, of minor concerns. went well FDA via we to were FDA met much to substantive their telephone meet requested which respond to with primarily no the and from and FDA sort clarifications, FDA and October So expectations. November their further they very on a the email on they FDA labeling. November letter get that us questions. received teleconference strategy responded wordings, would X, our clarification the X. their agreement with conversations we received X, was formally assured new And additions that extremely on an meeting the That to their There very had XX November our with expectations. assure the and responses we several Between to to questions further to we X November On

disclaimer we’re of confident this RSNA. is very the So we radiology I meeting It’s And XX,XXX a our RSNA do this stages product in by fact think intend confidence to new planning pending we a And people. to that still with enough approval. that at most important launch is very, we’re the shown a very we’re forward do we is in final will the aggressive the saying weeks. product couple very we attended that have a will It’s But very our that to the elements. feature we’re year. want if launch. of aggressive go confidence of and by have that. And boost have branding high new property product FDA, launch

presentation the mentioned earlier pavilion script, presentations AI number separate I our a RSNA. As of on a study, of different in the in clinical

with show a a strategic hosting we’ll aggressive reception And PR solution. that customer releases where press play, to of we’re also in around talking having wrapping placements. We’re very ad several AI night first our strategy several the speakers be the

Europe. are already live in them of Some

We the the year. end have several through international advertising of into RSNA campaigns running

to We’re and our making of lot a site all of Web updates our material. customer-facing

really sound what we of a are that that to ground FDA and making the arrives. hit this the running truly approach taking sort really on we’re clearance call this, firing all surround cylinders would ready sure I day So to

it Per. that’s OEM your on question the can Maybe now, So FDA. I address

Per Ostlund

Sure.

Stacey Stevens

had our our we’re with OEM very partnerships well. partners all I So would I as conversations OEM would say of and we that productive say have expanding

Siemens imaging that get product. companies; tomo to the leading we’re new interest from tremendous So able But PACS the Hologic. historically we companies consider our involved OEM finding to our is in process partners and there sales be GE, to be to want for the AI

workstations mammography, CAD are featuring had with know in productive – in have customers their PACS that will some to product this that. moving the to into the Many extremely to modules reading independent that of booths with And positive we reading quickly. we market off imaging lot of they’re of our to companies PACS product and off have And So PACS. partnership excited PACS the to breast are go get be feel building companies mammography the leading is be players. from very extended going of We them discussions of as a of product review another many along well. all the our

will of of of all time to launch. sort be working that the field with. partners go a got larger them we’ve of here So ready we’re And at

But Some running still are of the hit contractual have agreements formal ground we play. to them them we ourselves of in with, intend some regardless.

gate. doubling size I of As sales we’re of said, out the the the force

installed If sold all of our are you MQSA target new systems gate to there the data, XXX is to X,XXX out in after latest every quarter, XXX being are those go That in the look of units systems at addition is alone. that the U.S. tomo right to now tomo market the right.

after is of We the So have as augmented sales way in well, take the out direct why and fashion to have. control a more greater business our there. go that wanted we there’s market huge destiny opportunity which a force we

We have them trained.

the this opportunity that here in a They’re enthusiastic. have trained. expect addressable week onboard actually cannot of that of day and and us be clearance. In running. fact, The brand greater we getting to new And market several are ground we much there’s incredibly hit that front wait we as team the to receive right going

Per Ostlund

That’s you that, Thank exciting. fantastic. very That’s for Stacey.

Stacey Stevens

You’re welcome.

Per Ostlund

a If for second well. IORT we could about as talk

pretty plus study other published. an studies X,XXX maybe the the the interest Xoft in market. more patient the that clear as recently driving in and It an the multicenter mentioned sounds study [ph] inflection well, that’s there You then U.S.

long the pushback with data point it’s that we follow-up kind are game the that median to XX-month is recently that you it the this look a data, up. viable just seems I catching maybe recent at not fair guys I maybe point where time up, the the enough anymore? the follow U.S. stage statement? data, of is a think we but as at that for Is more OUS leader of been guess maybe the like more had And getting

Stacey Stevens

Yes, really it Per. is,

were the and still data holding the other radiation. data compared in when around IORT As you maturity the the used few of the the resolving. know, issue United reimbursement One beam with there back oncologists was the be to radiation were that more was really of clinical it rapid States. external The to adoption in that gap things is

positive. As in and continue most the data the a mature, these they continues at play to to meetings journals lot continue be get studies the and to of importantly

go that that less of all holding year of year an on of the becomes we of up of additional issue these sort lack adoption. studies, much by each we So data have an follow

think been less a adoption for And so do has IORT. XX incredible past this of And impact a big think in and time to very to had lot particularly terms And an it’s in of of becoming it’s much a drive issue. momentum to months year exposure I U.S. been of the I there’s it helping

Per Ostlund

We’ll him here second. involved get for Rich. Excellent. One for question a

side think performance, subscription pretty obvious EBITDA it’s revenue, still about how think year at very the narrow things. $X.X that million a $X.X negative run I you that’s the profile million decision With the a think flow the on at do So that? is just that I this it skin that very, quarterly of $X cash think EBITDA margin or earlier improved and since much of breakeven achievable reasonable million, rate EBITDA to is how

Richard Christopher

can $X.X flow confidently the with on the and breakeven existing positive say level, infrastructure expense a I cash million quarterly existing Per. be basis. Sure, would we and

Per Ostlund

I Excellent. Thanks. jump will else you. Thank let in. somebody

Stacey Stevens

Okay. Per. Thanks,

Operator

go with Chardan. We’ll Instructions]. next [Operator Keay to Nakae

Keay Nakae

Yes. Thanks.

product pending about first Just the question launch.

think In you your tomo setting what is for perhaps sales you length terms new XD the would of product? how cycle AI expectations, describe the of some

Stacey Stevens

a great it’s question. Yes,

some we that require as we us the to right. of sort is over that initial time, clearance have I pent-up when what indicated there demand. some call to technology customers they After would get might going have soon FDA, the it’s the think I clearance. are There do I So build from as who think

X that up to range will education then the six orders and contend sort cycles. this months the to and maybe of Version has budget have addressable the this market product with playing know need which magnitude demos months to if So we opportunity sale type cycles player can on there budget right. XX% only But be value for still in become of to technology. business, worked of today. the occur further from you bigger in than GE product market market on with of The we’re cycle is of GE several the product But and depending a of what share

mammography So there’s being able more to now address market you tomo, total, think market about in in systems a time. to converted according total, so given the XX,XXX And the have the half about little whole if and of U.S. about them than to at X,XXX any MQSA.

that’s the and And that that still market addressable our right So and will grow. as servers mentioned over represents time market. mix million really earlier, an to $XXX if you out of of gate, this right is us licenses, around the consider target I

sequentially it think start quickly we’ll quarter clearance. FDA continue to we pretty will through receive build then to after I sort every the And grow of So XXXX.

Keay Nakae

clinical increased is reader then or bringing table, other times investors the there study, results your with And RSNA presentations beyond upcoming second meeting to for callback? that you would Thanks. benefits need workflow, point with your question whether a to presentation about that’s would any the you’re that reading the the issues that or highlight current

Stacey Stevens

Right.

in in Dr. are another is AI made particularly value for Research of about on Senthil be AI study, of addition reading having large presentation Periaswamy and some RSNA here, talking Dr. the made going pavilion the VP going our So to who we Conant’s again that’s proposition of by to be the tomo our elements of clinical to datasets. presentation

So really two are presentations. those the key

to we’ll specificity within will the reduction again in and presentations talking also would at proposition have sort about physicians from of time. well different standpoint customers call as booth and improvement an feature value in peer-to-peer in the We detection increased I what the as reading our different booth some times

word while we’ll few and hear the this different getting So that out there’s message ways be the will at RSNA. a where customers

Keay Nakae

presented others tomo? XD your by of ones Beyond are being with sort issues discuss there simply the current presentations, other that

Stacey Stevens

the that as at modalities, Yes, moment. will or of AI I of front in presentations. this the don’t be tomo was topic list the last other hot have be me will imaging I’m tradeshow of them there year. to they’ll it be specific sure other Whether

there and on for I’m the Keay follow that be with I perhaps be for I’ll back a more for after this the on presentations So detail sure look up to with will modalities. likely at go agenda more other you but mammography meeting. topic number imaging probably of happy

Keay Nakae

so thanks Well, Okay. much.

Stacey Stevens

Sure.

Operator

there the to or to further this And remarks. conference like additional time. are for questions back it at closing no appears the turn I’d speakers any

Stacey Stevens

momentum sustainable IORT our growth that establish reiterate leadership commercial success operator. increase high reiterating our leveraging tomosynthesis growth FDA; and upon new on roadmap close globally. in for One, Okay. capital of like of and finally, by the Thank markets expanding our data. AI we to going achieve immediately positive progress have as base to you, AI timely And systems the customer digital from to and I’d breast unique forward. product new the again software to to clearance this priorities market from maximize the the next for our set our to of skin in it be XD position explosive to allowing will our version on product clinical customers meaningful globally available strategy Number two, GYN and capitalize a our market competencies today. addressable to meaningfully major advancing will expand in leveraging us for continue mammography all the

a day. future strong look again XXXX. remarks Have forward With year great company, of updating XXXX a our of enthusiasm we you conference of close to these third the thank today’s level you quarter and very and full the call following closing joining for for

Operator

your concludes call. participation. This you today’s Thank for

disconnect. You now may

iCAD (ICAD) 13 Nov 182018 Q3 Earnings call transcript