ICAD - Earnings call transcript Q2 2020

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Operator

Greetings and welcome to the iCAD, Incorporated.

Second Quarter 2020 Earnings Call. At this time all participants are in a listen-only mode. A question-and-answer session will follow the formal presentation. [Operator Instructions] Please note this conference is being recorded. conference your the Jeremy turn now over host, to Feffer. I'll

begin. may You

Jeremy Feffer

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

Joining months and Michael Officer; me iCAD XXXX. announced Officer. are and for afternoon, months from Executive the ended results Chief XX, three Earlier Klein, this Stacey six Areglado, Scott Chairman President; financial Chief and Financial Stevens, iCAD June

risks would during certain contain begin, would also reflects note financial operating performance I believes there iCAD. like meaningful the investors uncertainties involve view this are that provide forward-looking call these and we information of they that of for non-GAAP measures made to the operations Before Management that way the comments measures. the company. management conference by statements, results and and regarding caution future I

call. limitation, contains or of circumstances that GAAP undertakes Securities after a the live events to You today's filings time-sensitive release. that conference accurate the may the of only to Klein. it's is With revise I can differ find conference the call risk as said, to Mike? forward-looking or obligation to no turn content Michael this factors August Exchange you X, in statements. those of of and materially statements cause over any the reflect to call with the this which Commission, of XX-Q earnings that my iCAD date information broadcast, XXXX. actual events or Furthermore, pleasure this update date described reconciliation company's non-GAAP in results review without and to XX-K Forms encourage identify the specific from measures to our including,

Michael Klein

towards profitability accelerating current optimizing under report therapy three sheet, gross I of of and by three QX by introduction at margin iCADs and good is into the iCAD. to business, as market validation articulating of detection may theme flexibility. be IntraOperative extending are operate we our value one, afternoon optimizing embedded unlocking indeed key drivers Radiation our be market overall the our by the and Thank key that by like dynamics. follows; flow the continue advancing enhanced for today's would rapidly cash large positive particularly to theme enhanced and two And allowing and value that driving you, very is These Jeremy everyone. and GBM. and process themes treating is Therapy high offering glioblastomas or balance Theme offerings opportune earnings

valued, that only accelerating see not screening. XX Now, to to And demanded. are and are base and get theme of screening safe in first now this are open productivity clearly sites a of value, steady successfully we ordering more patterns, efficiency that XX improvement specific measures. where now our on customer has adopted environment for a but

AI essential. callbacks has ProFound radar finding even without by of more than unwarranted absolutely time customer's capabilities avoiding Our driver in sales our dependent. patient equal all performance. has mammography perhaps days a and has for clinical somewhat many more be by XX in become over XX%, The screens. more software, often to considered cases are and value in as AI our some even reading Delays Productivity reducing on to emerged and tolerable radiologists is cancers of screen been

QX our shipment US. and June provides good radiology for among of is this of AI essential pandemic. ProFound per in number concerning and in of severity. of SimonMed, nationwide clinical imaging time as licenses the rate defaults be acknowledged Now of widely are to particularly is in in cases a have while Screening patient delays XX screening for and six made a physician noteworthy hotspot the also course as broadly shipments the that cases implications secondary clear sale into the with feedback screens. X,XXX practices to grow both pandemic, patients were detectable at increases to breast are largest delays SimonMed a provider illustration however, this five months X,XXX is This and screening. delays cancers almost need about screening detected This this per healthcare vastly areas and improving site, and cancers seen The time A the order real pandemic. performance in The progress peak above-mentioned problematic. medical is effect on the productivity time of experience.

our ago, John SimonMed, the false Simon, be recent callbacks, improved to of press of for and stressful of technology reducing positives read the Founder empowers patient. radiologists cases expressed in with of unnecessary As which "iCADs weeks and release accuracy, – several can CEO earlier rate

clear efficient productive, essential now which Additionally, It feedback to is equipment that productivity more preferentially AI, provides is second cancers the ProFound customer whose evident the is AI patient that solution, performance the advantage We benefit an an even ability more capital mammography as what ProFound the are patient to early clinically input even breast With also cost is reader, high at of improved been more attract sites getting has with patients. providing and all medical ProFound our for of has in beneficial with deployed patients". end XD SimonMed AI effective. at marketing experience. every being and sites makes now proven and support a a software repeatedly making more detection

outside the that launch XD the offering systems in It be launch of offering. have additional the Tomo AI systems alone, phase of recent AI new detects enhance in will offerings fact Given The software the AI in – the and next software growing the final months With AI of generation worldwide timely. are is for extension more the these AIs Risk still large further are an not offers XXX an opportunities pre-launch volume well a the fuels installation in and iCADs that X,XXX designed basis, additional that its offering is The rapidly potential data. of even number mammography on next of more early we And This at is US Furthermore, screening. XD and to ability imaging XX,XXX and serve United our can Risk This a in introduce of productivity is Europe. software, US. AI This XD additional expanding XX,XXX the as over XD systems ProFound us driver evaluation. mammography generation adoption revenue AI access ProFound on market ProFound screening ProFound ProFound in installed distinct be of based ProFound into cancers the day AI and States there and offering installed generation installed ProFound on generating an precise even and more into for from is systems, to opportunities are recent of been phases after and our is earlier performance software ProFound ever the data greater. many and differentiator XXX our in of total for over revenue US, sites us XX from software installations installations. both to offerings. adoption derived clinical XXX% key patient generation could

QX patterns. appropriate two, well this XX% reduced align number implemented theme an on as strategy cost what we in we and reductions expenses we our reprioritized, Moving This in with in as served beginning year. ensuing operating proactively to qX us from redeployed sequentially ordering to saw QX, disruption of

and productive to expense million on $XX revenue manage our and management continue return We before more focus optimization, in certainly on flexibility. increased sheet appropriate having and have cash, term fact time as invested us diligently costs become well than we optimizing as which allows as for of even operational near balance

way meetings to milestone highlighting and product shortened allowed of virtual shows dynamics yields efficiency QX, operated technology, development us aggressive and higher basis. predominantly on timelines. terms hit with many additional sprints cost, product savings travel it inefficient deadlines, that our time and release team trade have is work research In time-consuming development The time that given before production and efforts, of worth to a has

hitting opportunity with a treatment glioblastomas. product takes timelines. third final Intraoperative good Our example exciting Therapy, offering of in our new further will soft to detail and that of the theme, This Stacy market is Radiation aggressive Risk us

data It in was far aggressive expands opportune to introduced common progression previously Xoft a of With of Clinical As glioblastoma and results our application nervous in free brain medium the system months. XX very most significantly control is arm. American of Society new GBMs global tumor that malignant XX with survival Oncology brain the with survival this for the our of survival May, surpassed cancers, trial type and primary and At a mentioned, almost and cases overall are both technology. market. XXX,XXX annual large addressable

to coming is results sites has one and anticipated submitted embargo be survival from this results threshold two-year in We to the now key that above glioblastoma May through have often been and luminary now globe. the have than around opinion academicians, a of attention able data leaders the Updated fatal publication journal less top attracted study is fall. released cross been practitioners The for disease year. for

GBM represented commence weeks three the go-to-market US The will neuro-oncologists, GBM And driver and reiterating to for commercial and key we Building evaluation will designed Just affirmation is our our is esteemed expert we it GBM what radiation of commercial panel that offering capability by is Xoft, is cleared clinical neurosurgeons FDA expert our parallel our our a an commercially and is panel. efficacy and for is of our validation that of the oncologists in ago, the in effort the will with gathered enhance product consensus in clinical today. in call study European worldwide. a this efforts. top to year. further of of Xoft and This multi-site will objective be technology a XX trial GBM capability commencement efforts coalition run available highly GBM This worth of further expected us. landmark viability instrumental that positions, development important an be adoption and validate

efforts California Harvard also Dr. lead towards endpoints on a key medicine selection, Tumor neuro-oncologist which is System has over brain our of consensus clinical Kesari and Schools. announce a Dr. comprised trial Dana-Farber Southern the pleased Providence and cancer the the to facilities. John alum been is board very of glioblastoma site efforts that the investigator we Dr. We Foundation, Centre drive patient many on XX of and advisory the be Kesari translational Santosh and Kesari selection He's Medical leading are American medical in will neurosurgery studies. an Cancer Wayne criteria. University also as for and leads Brain comprehensive at

value In are with strong in opportunity future will the a growth in value. and technology embedded Areglado. Officer, with Dr. points for summarizing the to opportunities treatments, valued positioned we work businesses. to our time. by areas in grow let key close shareholder detection and We continuing therapy Kesari such continue business commercial neurosurgery delighted to way level Xoft unlock three will a Scott? enhance our that solution to We the the closely One, are above offer clinical our me we this as anticipate balance detection therapy with honored in healthcare as have and productivity well-articulated And opportunities basis. we and high Financial market and efforts value I'd and will And will us. detection Chief enhanced both with call at – on and cancer like iCADs our as sustained. AI Scott ProFound cost brain The targeted importance to continue continue that clinical adoption software both of in and generate management sites operational with three, leverage productivity awareness steadily well application Two, requirements. in that tools. very performance, materialize, and discipline the prioritize AI to increasingly efficiency offering in global to as and and drive pave both revenue in our are result these generate proposition we turn community the now glioblastoma highly validate clear sum, so a significant is considerable will towards of improvements, will and doing investments over sheet customer are

Scott Areglado

Good XXXX. afternoon, our everyone now summarize results thank for I'll XX, financial the and second ended June you, Mike. quarter

in As second X.X revenues we quarter, focused Mike aligning Total million our during expenses with expectations. remained on mentioned revenue were the the quarter. operating

were sequentially X% QX overall declining However, QX from XXXX for down million revenues revenues XXX,XXX of detection with or XX%. X.X

of million from QX basis X.X second of as of X.X XXXX. On and Importantly, due on home second to throughout XX%. from quarter sequential quarter-over-quarter X.X orders stay a XX% through much versus X.X revenue a Detection million million, decreased to shutdown in million that operating general X.X basis, X.X revenues expenses million declined quarter XXXX, persisted or basis or quarter. QX second on XXXX, million the country declined compared a a the XX%, at to quarter-over-quarter the primarily

of However, by workflow and clinical be realized ProFound the unique AI to value our continues customers.

Moving in the second gross realign on basis a quarter of the proactive was for reflects as which pure quarter and to was a XXXX of XXXX, cost of took for quarter dollar profit On structure. XXXX million to on percentage second second profit, to the gross profit both compared we XX% X.X million basis, steps the gross X.X XXXX. our

the second manage changes, cost with will our decrease a quarter of of structure. we to of XXXX, cost quarter to forward, XXXX. a X.X for to XX% second in of ended were first the Going appropriately June we decrease corresponding quarter as revenue two sales million from compared expenses continue the continue and align Operating X.X the and XXXX will million the XX, X%

salaries, on call, marketing, efforts said executed including which COVID-XX the impact that cost targeted may be other we associated of our mitigation included objectives. immediate and company, sales travel, with on to costs last we expected our areas, cost to structure response As in less the cost align

However, these Overall, to the we dynamics are execution pleased cost of we measures the our be continue as reestablished second mentioned managed as objectives readily that market will in be quarter with can as progress. cutting improved.

invest generate to opportunities initiatives as continue and However, shareholder appropriately in future Mike such to increase indicated, as we cancer growth brain value. targeted intend to

quarter Now, share, per a for million GAAP on net diluted of X.X $X.XX of second XXXX X.X GAAP XXXX. share loss reflects profit of the million an compared diluted loss quarter net our second metrics, for X.X million to a improvement or $X.XX loss the of to with per of or

of reflective to to million or a the loss loss with net Non-GAAP adjusted million, first a of Again, improvement net and the the quarter includes share, loss income our diluted EBITDA share loss of was or loss adjusted per XXXX $X.XX adjusted of non-GAAP of compared the X.X expectations. million represented X quarter in XXXX for million Non-GAAP non-GAAP second per the expenses diluted QX of quarter debentures. the for value on our the a However, fair for net was XXXX. X.X with which EBITDA quarter X.X of million. EBITDA second adjusted compared $X.XX efforts align X.X XXXX part are revenue second

the Moving on and compared December to XX.X had of cash at million the significant balance improvement cash XXXX. a sheet, equivalents as XX.X of June cash to million, XX, XX, of company XXXX, equivalents and cash

investors. to that group issued presentation would XX.X common Mike reminder, the institutional million like turn is iCAD with in of continue Stacy? I strong the of and concludes highlights over an strategy X.X to financial a Stacy. the in operational our of high-quality shares flexibility, well April, positioned outlined. advance and offering to of stock to This million As we balance net with a proceeds With equity cash a approximately call

Stacey Stevens

emerging Thank Well, AI cancer of XX a are clinicians we include mammograms that enabled the eight over of we be the competitive optimistic more year. challenges COVID-XX defining as [ph] Among you, everyone. estimated result several posed new Due earlier seeing need these manage despite segments of unmet months pandemic imaging our in will needs this enormous will bounce to high back with to an easily million Scott a continue screening course in by in help we strong as good QX, afternoon the backlog cancer decreased as short-term both the be see we be urgent trends are position. of enhanced an that care. to business what now believe and for to

initiatives our updates be us which you and expanding our with unmet cancer need I'm exposure to believe provide for has global procedure the accelerating these amplified the breast further when footprint. IORT With XX our growth during minimizing remains our minutes patient that, successful in this enable address Additionally, to time will been pleased hospital to around to needs treat critical. we and

We AI solution. continue grow value this strong on business. continues economic global a on clinical leading-edge on detection interest to existing Demand feedback experience our potential based proposition positive to scale and from the ProFound the side of and strong customers and of for

some COVID-XX opportunities. sales While in cycle, cases the and both has our with grow elongated deferred to sales orders pipeline emerging continues newly

Mike large such practices in and Radiology, one the With largest SimonMed, as customers the of the which position referenced technology use among wide providers largest medical expanding Jefferson of United outpatient radiology States. system imaging our and as

pandemic our going force, than continues and events trade we combat sales has for last in even with while traditional noted being present which taken number obstacles our actually a call, ways other on some unprecedented to proven virtual, issues, of or the marketing many introducing our shows As these to cancelled have I very proactive approach challenges be to approaches. a successful more of and

marketing has programs strong in a including marketing Our attendees, and resulting large of increased positive with sales step in an to digital qualified website audiences of the a strategic our to initiatives. and measurable to significant driving generating channels, webinars and continue engine overwhelmingly leads continued as among through response team social educational media in succeed engagement, These participants. traffic number attracting

hosted workflow Impact Targeted June of This specifically Breast and hailing as radiation virtual free Therapy. the practices on IORT The to and event virtual best leading early the way US provided roundtable highlight Cancer discuss share this webinar cancer patients half a of COVID-XX I'd need COVID-XX first the that attended minimize as clinicians. treatment and optimize Our number for exposure followed. the event experts the key several a from institutions unique experts technology professionals with period time events such year iCAD was in of the benefits the emerging in a during industry across in leading The exceptionally targeted engagement goal the breast the positive well and highlighting to featuring among Radiation Surgery detection days and for beyond. we to forum cancer offers and titled with for like to leading clinicians in of breast

webinars, investment indicators revenue the other webinars measuring by key attributable to this through impact, we on of the track to force and and sales track leads are specifically these To have in actually platforms. of more now our number QX end, we we with leads performance from Importantly, ability our return now trade generated In generated we programming, all generated sales alone, from these shows. pipeline events. quantify to dollars in-person can XXXX virtual at on then

still pipeline we analytical implementation these resulting seeing events. our tools, significant early virtual are these in impact while So of on are clearly the we a from

of Now, suspended France the during purchase mammography yielded push as May, public the in looking the a most Europe, of countries screening April outside to results pandemic. sector continued actually sector this during US continued and however, into

sector most We requirements. AI also to tender tomosynthesis push are seeing for in the public include XD

all we We market now that in the of bearing fruit. investments are are made pleased XXXX development

In leveraging proactively to manage in flourishing Africa distribution region. strategy Europe, with Saudi coverage now final we are our manage with this Arabia individual are utilizing team a throughout occurring relationships we Germany. OEM in executing XX Morocco. partner them, direct and in partners to in are both In We than Switzerland now discussions to and distribution multi-channel relationships these hired in have an have UK and East, so in we the and negotiations recent and and order Nordics, advancing the the Serbia, additions more region our then Middle and countries, distributor experienced North distributors addition

ProFound screening our will driver these we available Institutet in excited to markets. which research from the outside growth with decision continue that AI only extremely been of focused risk and mammography, paradigm is our now uniquely to has screening the strategy, from This at resulted accurate the historically see, Risk personalize virtual looking human become that our I combined universities. short-term the cancer recent density AI the Europe Risk's XXXX launch eyes paradigm what our strong AI be a the subtle pleased age, an screening support ProFound tool, release two-year world's expansion clinical of scores in breast cannot XD company. breast highly changes, foremost resulting the US woman. release just and in first Karolinska with for initial also Radiology increasingly invaluable expect discuss the AI from truly risk ProFound am unique empowers clinicians and early We one collaboration ProFound Risk prestigious The to now XD is of mammographic meeting. follow-on moving medical Stockholm, is estimation. adapted a a screening to to ahead, with an And commercially a Risk so for European on Sweden, age-based performance including Congress each those globally. available and woman's

our business, our data Centre neuro at the to of advance, therapy studies the pleased really Xoft the new clinics into advancing particularly comprehensive extremely our Mike clinical to international front, addition Jeffery we continuing the announce brain with at care Medical turning types have positive use European largest made that with application I Centre Clinical to referred of continued the the strategy, and Brown the Russia and in of Cancer to in study as an private are Graham we the achieved on our in the and treatment of Now oncology. formulating IORT Louisville, University clinical examining of pleased momentum tumors Along and the Moscow, progressing platform such board various leader advisory one of Xoft was the medical have James milestones in relative are sites prestigious to the with to. strategy expand we areas. progress And business. and of I our play unforeseen President of companies a the efforts role presented So accelerating our an that in has team Manager in Sirek clinical more look mission continue that its our technology as the team Senior in we institutions am that beginning industry. identify we forces have our the now our seize as Vice Jeff confident as iCAD within in leading steadfast very to opportunities commercialization strategy to and With improve, worldwide, leading remains challenges, trends multiple to to And significant leadership and iCAD, therapy and key over sustainable face will operating long-term the General coming and growth and for expected meaningful with significant expand we creating position many to globally shareholder catalysts a summary, value. continue driving to to and several marketplace achieve for growth research Xoft engines progress generating quarters. position

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

Operator

At session. with this question from proceed Instructions] time Please we'll from be conducting [Operator first is Dave question. JMP Turkaly Our a question-and-answer Securities. your

Dave Turkaly

thanks. XX% just up say XX% that heard the sites the made, are Great, I follow you Mike, I open. I of you comment wanted think to to

a commented be to in to to think what above past. you we that I'm I – was throughput it just I that's curious I expect as someone guess screens is the feeling at little what sort consistently they returning more and patient's now? confidence out the confidence, get Are where to their point? figure this consumer of where better is done to is, trying

Michael Klein

eight screening, of, instead of and it's question, we The two we're The patients. XX% a patient at what is for comfort, are. an of equipment, prepared going to the to starting safety go and XX% their very the confirmed allow patients way they've yet for on beginning this by it's instead nine it's have of accommodate that or in that typical cleaning been say let's to the but doing not they're We're into appropriate sites still number comfort, patient industry a and Dave. as the they're also comfort may and evenings confident with and four to Yeah, three down scrubbing only good others. five, hour, looking provide and have so lengthened been maybe safety or case earlier and they and and longer can into Saturdays, treat workdays

the to is this day, in has risk though and weeks are combination one higher moderate the particularly April we safety or the goes, becomes say concern feeling if not a higher I three they've longer more put say, a the, being So first as in bounce to period. that screening the increasing with in And category extended think measures that work risk at place. in one are in did that way time back definitely May of let's patients allowed

Dave Turkaly

this a about I how of but follow quarter right I imagine you're went the sort a guess is standpoint, of from if up trough was if even the want into improvements May in in the June, continuing early about you might I prepared any curious then period. and to if a So are other those you I'm then add say queries. Talking couple monthly and color saw July. know that there. don't

Michael Klein

that as looking started and certainly and certainly approaching we patients which the help are product, kind May practices period, can I sites and ProFound towards and closed they things sort obviously you place. of that was can a be sites And when and product seeing up quarter, April examining are a well comment lightening in on first before, which move safety were started and is efficiency the efficiency we there leaning and down very recovery Day, on for have resumption And at performance. second that need to our the a and Well, a aren't large their and stated were Memorial and time measures improvements was mention side, through in scampering in productivity of the getting productivity and the physicians not not screening at responder. everybody's to locations those into and

the and cadence and mentioned big the some the one, clear trajectory. It's hope the a than of to the of quarters, barring large-scale see beginning continue been end end that a is pent some We the we're quarter, SimonMed QX, May saw additional are back we the saw end have which may outbreaks unable beginning there way we the of was by of added through pipeline in second amount the sales you to but in at till QX So upward not of a that end to from June. quarters the you quarter. certain regional the beyond our pipeline order, to demand, flops there we orders our saw up the that we the say get all bigger that also are of and might cycle in the typical the of

largely at that think I gets David. your question, So

Dave Turkaly

you congrats Thank on for the you. I'll that expense off. and hop thank management. Yes,

Michael Klein

Okay.

Operator

Craig-Hallum. next with question is Per Please our from Ostlund with question. And your proceed

Per Ostlund

Good thanks. everybody. afternoon, Great,

data symposium interim potent Just So cohort. I because kind the if data, that therapy look arm fantastic. the those I going of to or say, data look as a the it's I stopped me running May actually, doc, continued on to looks could. the there fall. Are here forward the thought And obviously three-month a as they was, personal I'm arm, the ability on think of for glioblastoma strike has to at formal plans the that focus couple the there given we very clock provide very, in and, half the those still seeing control in questions on ASCO recently most is The of going the publication other virtual the was side certainly at basis? that

that is better of the opportunities that your what more to go. light to the age So more to data as just ability out we know curious to see bring

Michael Klein

know, the the end of passed patients had a the that's end you the of presented December. of in were performance as And control fair reflected September. the the of QX that And by all Yeah, question. results arm as in GBM

know, to intend the lead. recall, able be end did show in to our have as at fact, So I to we we results. we results those And you'll March. of extend continue our And

May. of publication, have accepted go release results, a are off going risk we we trade peer to March most, and publication and the typically And for own the we can, gather we our information publication were however, for the to May potentially reviewed the not going near into our continued We scoop for to try when submitted prestigious for the getting make most and we to submitted publication. April and in win get and term potentially headlines

fall. them expect with have now May and those we go the submitted So the our call made results and we results been to to have in

an let's help on is not and journals submitting in neurosurgeons designed quarter it trial to we're it. face really get we're Per, to say some be using to trial. basis will for involved ongoing going to I recruit us prestigious other This because ways every the Now,

forward which get as our PET and every are with results to looking scans at days, of form XX into other going we we the disease-free in measured progression, go imaging. other and forms are of So because MRIs trial, be we could

quarterly regular endpoints of So free anticipated we and we the have a see overall will at progression free and survival survival progression reporting with could survival intervals. that cadence our

Per Ostlund

Sure.

year I to sense. of there's been side. the over the so, makes Curious latest as that Payment a what the last call lot as or the thing on liaisons oncology radiation Okay, your from of hearing this Alternative radar, Model that conversation that know have and and prepared sites be if their to on are sort have for. you're in they might beginning implementation industry say to have about to something to that

must a but it it agree may something accelerator, that so is do about. that as have of probably an be lot I much not ask people a think we

to you that figured guys to too. this So I'd I take pose forum

Michael Klein

Sure.

this, on to refresh look think of in Stacey. Stacy, her I per but so has minutes, daily every kicking computer turn a no on going button this times literally at basis, the I'm several XX us who All to than more day, sometimes one

Stacey Stevens

than Per. Hi, faster but that be I might it – Mike, Yeah,

we of couple a – So things, don't

Per Ostlund

afternoon. Good

Stacey Stevens

with came are we timing final you? hospital right. this that of and don't the update XXXX of on RO-APM. that morning, rule know How the the the we night, the the But RO-APM have out reference, see We for publication the and rules last did an language release of do outpatient physician

that about are in in thought interested they analysis be oncology and that alternative payment their and expected the XXXX, as well. in one had clearly those very will indicated these models APM, others they rules reiterated we're CMS they the radiation So meaning APMs in there there

oncology further implemented actually we next earnings reports other we companies, this validation So echoing other we're right. whether radiation year, think in that their sentiment, forums or seeing that gives see public that same will and it

has they ASTRO sent that know same feedback letter CMS given that the several was basically do right. weeks. to CMS, had reiterating we in it previously what So the another And last

the reducing to mandatory some of centered around potentially maybe reporting and changes making participation, So it some the payment scope changes some methodologies, and was requirements.

to for and same basically request, between RO-APM was ask language did actual So months it one time of was implementation additional the final the the CMS six feedback. make the But the they which they published it. of

So will we regard. in this to implemented be will XXXX. they seem that successful don't be But we validation know if in continue CMS to influencing get that in further do

that year. are still by, But month this for see since as think fitting goes greater it's As starting March. word each to and next OMB the of confidence in greater we I going implemented gather to we're today,

role it for Our customers and mean prepare can educating about and lead what it. And economically we're that encouraging are that for customers it talking will to imagine them them taking you a about scenario. and

process So while be continue a we that, while wait rule for to do started that final to back and that published. we

Per Ostlund

space, that point Varian as you tie see how radiation Siemens you what Excellent, radiation I therapy, what have might the an impacting and curious players tie as view mean of see it you far referenced since signaling and within well. of attractiveness, up philosophically, the other on do impact a if guess, the and for space particular with might if having Mike, as that and therapy up that you, you any might on

Michael Klein

therapy understand partners communicated top and And as some own have I coming, of I will let's other they was ecosystem. From what destiny. and people others I Varian was the even with its reimbursement those be when was in I – out that investor seen that there, these this for imagined been I've cost say in aggregating dollars I care. of think referring therapy they for pursuing It's acquisitions radiation get attractive new the didn't with markets a technologies right. radiation one their goal a improving I look of potentially things and had parts see more would And serving system and say, while are the international entity. of an than to that but of to CTSI offer under case at I it's a of growth volume radiation Siemens that little a care number presentations, access projected look what running and Stacey you believe the good Varian, of that large at ironic, coming in the they're and of competed very made market. actual And acquisition they the at operate to basis. show did independent what has we business the Siemens of take international Siemens almost is going other international a place against this, as the RO-APMs or is US the Varian's a year, footprint and The was part is was presentations, India Asia, markets. When almost to from oncology to show behind Varian, potentially in operations it portion quality think itself. into And also was they've I is if the flat on China as delivery continue so this bit

in oncology. find home economics has were What international. is their international the could of our GBM a biggest growth because So we actually I that course is international for think also found our opportunity that for always about results markets. and it I – favored radiation IORT interesting this healthcare reflects opportunity a in started growth that

with see towards time OUS oncology better going in seen responding. at I more to on are So care this. same the while full are I This well others to is and be that – radiation US be learn therapy terms very say think the But would we're moving the keeping certainly as a how we respond? shift other with radiation price in international. companies move we're it'll about focus may how we How radiation to oncology APMs ripple going I as effects in eye still United haven't or aligned States of glioblastoma and think the on seismic of are our this in in to parallel the the interesting

Per Ostlund

right, makes in. somebody let All Yeah, step I else sense. will you. Thank

Operator

is Lake next question proceed Brooks Our with Instructions] Capital O'Neil Street your [Operator Markets. from question. Please with

Brooks O'Neil

see line and with XX years, that experience touching your do the off Hi, you questioning, just industry? guys. your industry over of on Mike, of with Per's follow knowledge or within Varian mergers following consolidation on perhaps at the

Michael Klein

with could of make to – that others that technologies to in could And to looking of aspects see a that forward able that DXTX up good it. for as treat they may Varian interesting stage type AI companies radiation the the way tools puts in Healthineers basically or what of pursue to of one potentially gives efforts But centric technologies therapy with the or more able of I that that that, demographics. the extent are of extent it's see be think well to vanguard businesses want QuickBooks think the that the market can the the we side. interactive AI see imaging that an things Varian path. say optimize lead because think – It's – – of similar radiation we patient on merge imaging us may at has. the has and I the advantage nature we're applied, together, promoter with much, and work integrate their is that, part that to the play we of of I the is to will the be therapy, the I all the driven good a of benefits disease, Siemens is different therapy that the that an treatment the been position can that being AI to haven't optimize as technologies both this in it one both question. I therapy and do that an aspects side this acquisition feel it delivery very plans in And linking the becomes although of on and about therapy a position them call Varian definitely we of the the a brings in whether this rise and and do [ph], treat it applies around further Siemens talked terms you're and of been

Brooks O'Neil

out themes now. the radiation hot is there the you guided of It's know, marketplace in interesting, one therapy image really right as

is So a move that direction. maybe in this

cancer, one Speaking detection AI then an only diagnostic to I'm breast see competition of for give and year, ones AI was ASTRO the back breast system sense themes. you are way all AI diagnostic the for type going other curious continue about competitive in any of you us I with could the last approved that's Chicago significant. of guys products in to you the hot AI cancer your there products observations environment, out

Michael Klein

read sensitivity want AI breast In able to be of kind certainty clinical able of at detection, use of to clearances to have any to cetera, the of the for terms is and to have one we real measurement et stand a be the images of two technology what New cancer in we look physicians scores from to which player, screening, in the this Zealand time, that as two and of December that, an international players quarter course years first got saw receiving that'll of – the in And mean marketplace. our operating approval, approval. another Netherlands in get the of be year now I by out developed player is we

at yet say the headwind or or competition seen a pandemic approval account a fact don't see sale now we out commercial think into lost the and does that help of let's in an a market We I – four part and coming got the really months beyond in COVID not folks have and time not there. have into

– the there what our fell any other all we calculations in have full we we the say and that we that that's market. believe So out know installations

Brooks O'Neil

I'll you without catalyst you in specifically what and and I your Stacey, remarks and saying telling being. a drivers have quarters. Great, it by couple short of up more see sweet. and a growth us to and keep coming months But those you following try number see concluded

think to be too you significant on going think for without coming what you going hoping was I catalysts you us long, big quickly up, you the that are could tell So iCAD? of have

Stacey Stevens

Yeah. Sure, Brooks.

you exciting So right. the some of coming roadmap, I our have think if product look we sides things both at on business,

is AI on So launch focused of market. recent the I initially Risk, European about ProFound the talked which

global once will ProFound sold I Risk AI impact development in some And in module will see ProFound in We're to we will from much in we that ProFound that we that early AI in impact This finalize market be XXXX. of to XD bigger core on the as itself. for from we'll XXXX. plan. revenue also product that algorithm be a be think add-on then AI the part that that we improving the of a see particular European expect market. And additional all then launching geographies an working a product the

Mike performance that as data clinical the more even So we which to quite we effective, from improving I algorithm it mentioned in his introduced ProFound on already where train from is think now have script, but today, is about AI. XXX% when

applications make the then clinical going global clinical So of sell. we've We're from further of right. do new to on these an launching we for And we improvements FDA cleared as the product side on have still our collect the into business data therapy to while business, clinical become been And therapy some continuing continue some expand driver. be commercial and study begin to able are applicator the in the Elekta a that we neuro customers. to growth performance that time over we we to application, have a interest the side can launch will

system, the right. new So as to to increase therapy add globally, continue we market applications we our addressable

give in that's for only all start growth collectively of sides more growth the these – have of XXXX multiple them, will will of the confidence on business. a So both we us things lot prospects happening the business and be in there continuing the and

Brooks O'Neil

for one designated guess on SimonMed maybe Scott. and Mike that's I one for to Glory,

you. I down might significant to XQ seem to just question. related and radiation Thanks about taking a SimonMed? Mike, hoping sometime whether the just was a lot it out talk you from you on for as you've number. operators whether a you road? Scott, multi-phased material see XQ or about talk Thank little bit expect revenue contributor installations you curious So after a there, for other any And or my following to XX reaction just for I'm Could seen how recognize like that

Scott Areglado

– to take one? want want to that you Mike, you me

Michael Klein

here for good solutions it and turn SimonMed they indeed for very business in to in are Yeah. they cutting are the question. and one an a I'll point. model. more the in. forthright leading-edge financial those first that that novel presenting operate you, markets early it's over that Yeah, second, technologies the adopter also in is are they edge very their That then unique handle Scott is

you This inform by because And took actually they factor and hinted AI they're doing. technology are as them of such material reading be drove where themselves. always And the of is and they're their patient you their customize markets big to sales and choose the the and of they if mammograms other technology, and corollary it capabilities at, this get results use at such get that but real be for And do on-demand their read promotion they sort And going like want can can them its has it very we where to in for advantage. read time been and what cases they've fact, entered results. marketed their that sites. communities they sites they of those market. they market. provide do as and to the course, instantaneously. a to And to able corollary effect many the generated times Women a time results into as having during if have we other in know our first can get have many, to centric use be these, they in real where In they you're especially

I'll sort have So that effect. question. does it of end to That's Scott. it over back of that the turn

Scott Areglado

are how Hi, you. Yeah. Brooks,

that, the so QX. of amount of got of the bulk at that we So not Brooks, everything in significant a almost order, time so shipped in all QX recognized

Brooks O'Neil

very pandemic of and thought you wait terrific I half it's thank see the results. back light Okay, can't to much. quarter And in a I the

Michael Klein

Brooks. Fabulous,

Operator

remarks. reached I'll Klein end call answer And session the to the for any the we Michael and closing turn have of over and question now back

Michael Klein

by I for themes. call, key for just reiterating this Well, And hanging with thank to call. everybody for the I three today's to close again. participating us want on you thank want all

basis. will improved We detection driving will such the healthcare sites prioritizing enhanced enhance articulated and global key will very therapy embedded iCADs are detection and business our we're so shareholder that to unlocking a continue customer grow we value the anticipate sum, everybody that and opportunities positioned, that, towards call offerings detection beyond to like awareness in high will targeted clinical I'd and of Risk efficiency. iterations are thank The just with products that And as we revenue we materialize go value. today, in as In with new and and validate seeing with treatment, provide of Xoft continue of proposition continue considerable clearly perform. on in market shed growth in and And increasingly beyond investments clinical AI brain fact in GBM Two, the participating as operational will importance. close with requirements the business. continue these also balance with today. do in will enhance performance productivity light commercial that million additional generate with on in adoption even and such pave that both and are result finally, clinical both productivity XX new way for opportunities our to therapy high and we'll for us strong continue And of we ProFound again, management neurosurgery And to a application as much significant with sustain. cash and levels generate and in the over well a cost overall being technology opportunities doing steadily offering sheet efforts stated and to areas leverage clear discipline and the improvements, will community valued solutions, in and software as value earlier

Operator

and conference this today's may at concludes disconnect you lines Thank for participation. you this your time. your And

iCAD (ICAD) 4 Aug 202020 Q2 Earnings call transcript