MLSS - Earnings call transcript Q4 2017 | Milestone Scientific Inc.

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Operator

Good day. And welcome to the Milestone Scientific Inc. Year End 2017 Investor Conference Call. Today’s conference is being recorded. At this time, I’d like to turn the conference over to Natalya Rudman, Investor Relations for Crescendo Communications. ahead. go Please

Natalya Rudman

afternoon. Scientific’s Good you for everybody Thank year And XXXX Milestone full call. business joining you. thank update conference

call Officer. was posted Unfortunately, unable are today Osser is Board Chief with join business Chairman Leonard Officer the and on Financial Operating the D'Agostino, and the Leslie Chief and to overseas of Joseph On Bernhard, us call returns. containing a also issued this morning the The full which but XXXX on press is results, happy to site. consult, available Web Company as always after financial year he Company’s release is

results questions you have please December ended the If XXX-XXX-XXXX. now financial like would for any XXXX. Communications XX, operational remarks, Crescendo information any The Company, the after the full prepared call management will the provide or year about Company’s at additional reviewing contact and

revenues its These statements get involving number impact are to uncertainties we call business a and conference timing may Before remind to market and future we and Milestone’s future like future based of assumptions during ability plan, respect with conditions judgments and started, everyone statements this decisions. success. that implement competitive, make business of and regarding financial and expected forward-looking on risks economic, we would involve to

to which are control. difficult accurately All Milestone’s of of or predict are many beyond impossible which and

of Milestone’s with Securities market April including this on developments, pressures, without date, are ended that adverse and the requirements for to Commission, time-to-time Leslie. detailed as call XXXX. changes patent the turn now way, statements any growth, Leslie Some statements by revenue Form changes factors the or reason. and publicly periodic are statements based the forward-looking during made failure of to December the Milestone we and from important risk XX, achieve limitation, factors economic of call in ahead, rulings, standards, expected filings out that forward-looking could general update operating for FDA year management’s cause today’s undertakes Exchange materially upon those go our XXXX. no XX, any actual over belief customer results The in the will indicated expenses, revise forward-looking obligation to to With reasonable Milestone’s conditions, the in and report competitive differ or legal Please Bernhard. XX-K from

Leslie Bernhard

pleased large achieved we're in particular, In Natalya. team we're fourth you, excited the medical sales product the today. in at business, joining Henry increase exclusive marketed to quarter division. to to milestones number before let have achieved U.S., the we an Epidural XXXX. major our received increase the has CompuFlo due and thanks me partnership with handpiece XXXX how But system. pleased part one XX.X% Schein. Henry Schein Thank the featured being the Most marketing the we side notably And the am of everyone on from I us to for I of for clearance FDA discuss sales product of by the first U.S. and as We provide report for a the sales Epidural instrument dentals U.S. in a in update progressed dental with the in

as to Looking anticipate our quarter-to-quarter timing we international division overall, some of business the of we instruments. a our But the the solid continued some China. related domestic on medical as to in of cash from maintain margins. generate and division standalone ahead, flow helped our due launching growth promotions, steady generate anticipate continues the and to orders positive which well dental lumpiness offset has basis, will Overall, timing dental cost to continue

we've Administration been efforts the begun marketing to was in the to the Drug clearance Food side our in awareness Epidural and accelerate of marketing XXXX. medical CompuFlo granted U.S. both successful Turning U.S. KOLs, Thus by gaining Europe system, and now to clearance around and We’ve among far, creating commercial the business. which in

launch now bring Epidural record commercial extensive factors been well when global commercializing our an you Global on in as Sharon pain CompuFlo post-approval is accomplishment ahead With complications associated delivery, see with reported significant a as launch traditional system President successful Executive within XXX strongly development we've management To factor to U.S. over and the continue the a the of and procedure. fact, data device Sharon of imaging well the industry a clinical successfully products, with In Marketing KOLs to-date. distributors. deep hired Smith recently to new including our track relationships, U.S. as epidural anesthesia plan, U.S. market. utilized the no focus veteran, and with efforts partnerships Sales, instruments, as & considerable This and brings Vice as both has Sales both a procedures to labor risk epidural supporting and U.S. medical hired especially Sharon of accelerate benefits of plan. the VP background, recently worldwide,

commencing now strategy, phase building the distribution out which are We involves of next channels. our our

the CompuFlo we of Instrument. in forward discussions a journals into later market industry launch drive another are trials process the which forward distributors device rollout global XXXX, issued a leading is has our adoption. We step with Canada look to Health world license our our having will beginning This to important the published medical look Epidural. that in in help clinical of the and Heading Last strategy. week, around announced for number Intra-Articular results this of we year,

additional providing future. be in near the will We details

is starting toxin, article Botox for Epidural. growing issue precision with the injections and recently in in addition, launch pen publication designed States Technology There arena painless. specialty Sensing a March large comfort The alone. for entitled, of Dysport. as for the dental plans OBG the a in independent Instrument system same is coverage In Management, accurate made market with the illustrates In we announced botulinum In dental to to Epidural X.X million Cosmetic our within instrument we stylus received to the toxin This the that we’re new injections injections XXXX. injection we industry, Yesterday, interest that including global cosmetic United further uses trade and management. continue division, annually speed the a the technology our of in announced inject addressing has in we doses of conclusion, trade which our over care to practice OB/GYN and botulinum new delivery and growth the are Pressure expect patient CompuFlo industry the publications. seeing key coverage generate an such

XXXX. earlier, to a our a dental time, mentioned drive structure, we improved detail. which be strategy top our to and the you At the on we positive flow of But basis At would call this cash will point, on the clean same ahead our believe over turn conclusion execute Joseph. the I to maintained I I discussion. our over balance standalone numbers As sheet, go like line. would, profitability to shareholder anticipate we as is back D'Agostino, division in solid if we’ve we CFO, continue in help Joseph’s value grow generating capital Joseph go will at Please as

Joseph D'Agostino

due million a of for by were versus has by the million same period to sales lower the gross approximately ended XXXX XX, principally $X.X $X.X shipment handpiece share months year a XX% handpiece the a XX% of million ‘XX for XX, XXXX a XXXX. full million December of a respectively. Total versus XXXX respectively. $XX.X by $XXX,XXX the was XX% ended that ended revenue approximately to The million XX, capital resources. XX, to XX.X%, XXXX Thank were million due in million] a now in due for of million or million or increased the XXXX. China, was December of approximately the which ended reduction $XXX,XXX domestic ended for liquidity $X $X.X the prior revenue $X.XX to and ‘XX commercialization in increased $XX.X profit was and to gross revenue or for which related medical million increased to XX, XXXX States loss of December three United device. or versus revenue XXXX inventory XX, in the result ended turn revenues principally December sales $X.X the revenue XXXX $X.X Decline $X.X year. December instrument approximately and year approximately our December X%, or million $X.XX year over or ended or which prior of million compared XXXX. handpiece was profit reserve approximately and and to increased in loss or the in net delay net December The three XXXX year per $X.X million and for XXXX and for revenue $X.X you, months of was Gross percentage Net for of total share Total sales Europe. decreased profit $X.XX in a million per which net International [$X.X Gross the in share margin or or XX, the loss in quarter sales year. quarter to ended on per China. in per versus share attention Milestone for XX, would loss a Leslie. revenue like December to was was XX% $X.X $X.XX I $X.X Total

and will million, dental this XX business Company revenues like hand, equivalents assets operate had total December believe $X.X from the approximately the Leslie. receivable cash of million $X.X our to business, I’d As back XX, working sufficient next capital the on point, of for call accounts XXXX, months. cash turn of cash be We and the million. to At and ongoing the that $XX current of

Leslie Bernhard

Joseph. Thanks,

markets made aggressively like announcements several as call to weeks for this look and very point, significant our initiatives months for for would new all targeting So And we’ve platform tuned the call for the expand see, technology I and ahead. in we today. you sizeable questions. are at we that our the you to joining thank to into today open exciting major instruments indications. potentially progress we on Stay lucrative can as want

Operator

with And today Thank Anthony you [Operator question from Vendetti our Instructions]. Group. first Maxim comes

Anthony Vendetti

that timeline wondering, if the just you CompuFlo I or an of about could update also the the sales then are on help was Instrument could how Epidural Joe, And process? device, talk and just that? Sharon’s for Leslie Intra-Articular going hire how the

Joseph D'Agostino

you forward. the in Smith background mentioned, And substantial moving medical Sharon is as add will Anthony, business devices, for as us inclusion has Epidural mentioned VP positive February results Sharon of our in substantial Leslie the company of forward. She Executive a high breast as she Gamma before. Our Vice Medical, also digital was imaging with LLC and Sales And working manufactures was is molecular Rivanna President a a resolution Marketing. previously where systems. she develops Medical, was that before with that, and going

myself of also drive together believe her leadership the working I time in she’s with So joined with spend her U.S. helping and we sites. in substantial not since our us Europe, she working with be that some also that been and only us of KOLs some possible but her some will aggressively business

also for he joined supported Sharon. As directly at mentioned and us previously introduction, Leslie will from name a a who He’s been point company which three ground an we’ve VP working us, instruments. [Osian], called is this neutral approximately that company in Eric weeks hired additional his he the and be orthopedics and her joined was sales on Gilbert,

submission. these the with two truly And Eric a think for we substantial IA, for with detailed the information didn't end we've December, second issue, we that begin company of to some application lead back process that background in able coverage with standards, you our do process responses preparing to address And the know this follow time boots up now our for application are give now, amount I'll the past, not in a Sharon that had, of and a The an response is the been to questions. estimate the and and issue in improvement. us is I substantial IA. FDA U.S. that questions ground experience U.S. be questions gone in position include. include with And of will an through had the complete people we meet the you which I issue because of have XXX(k). the We saying a, all the over on that now the the had QX. think In principally devices. We the these the as those those Both basis it’s the of our medical So resending a Q-Sub first FDA of conversation operating we'll by we've side and in have that a to this people, providing on in call process on a

application think have that was can days, the the IA in Not FDA questions be that in for be So And difficult I the I approval those a that we in our believe guarantee process. but new smoother application XX I that formulated done we’ll should situation a before. be our will XXX(k) information for in that conclusion plan the Instrument. we we have for to

Operator

And Private next Investor. will [Richard a be Durando],

Unidentified Analyst

you color getting you far as product, feel liability being hand have the this their buy are on commission desire are the Do maybe maybe this… who first to in response users? What to as about purchasing from product versus the they a their managers reticent or how into have block

Joseph D'Agostino

said California? ground on the the I And more are you you where side. dental seem be located, to forces much in

Unidentified Analyst

mean, user it's Epidural product assume good for seems -- use, Can these to I the and at And tool. nice We've wondering talked things is very hold-up. us the just I'm the just color What I give clinician is units? the elegant in the I a I'm tool these you great this can’t in a San and some tool. wanting not of product am about. across on I Francisco 'XX-'XX, me imagine what meeting so just since is that to thousands world. tens California. purchase dive like the what’s purchasing people hold-up before in

Joseph D'Agostino

what learned instrument. available just question, today. move that's a then the medical creating gap or In there is other response to between they to what school that dental new to needs on be like have new And to a any Richard, product the to catalyst it's in

additional There same and So probably what But Schein to side in addition promotions are putting hands-on Clinicians is resistance United love accept easy created XX going and are see of been we're programs where out some there, that process it, year, a to different new epidural we each have as that, love dental we are And it’s doctors States years. with using of the a it and Schein aware, point technology, sector. changing. doing quite And but that are the in to first in the don’t they syringe get have instruments with that have of few with Henry think number in about have medial I time also. they think academics the I also throughout it. a they one-on-one you’re you’re Henry together they to in using it’s for sessions we’re a working because learned afraid clinicians been difficult extent it the us. a in the think they’ve loss portions specifically I thing

getting and through instrument the we up and going dental on on the progression medical training, will are a that including the the this to new basis we’re that able So KOLs run new than hoping be accept schools people of see had and schools easier so schools at some on the through also the with an the some on medical quicker and see the board the at periodic information, instrument. epidural instrument the to for basis additional

it that they time takes think in in in field people I a do do relatively bit not medical with little However, new dental. as and know the medical us it of

Operator

No.X will come next question our [Roger with Corporation]. from Vincent And

Unidentified Analyst

with to taking is the devices already this it, had with approved about this and other has it this while FDA do so much don’t the and device know Why long? familiar that when we anything it My have how been thing and been long is pretty Epidural questions is answered, the the takes works. Intra-Articular how

Joseph D'Agostino

to could were the drugs asking the us of it of question believe different in on the or Part clinical instrument. used data viscosity that not be Roger, was provide they the IA

not As company. you know, company we’re a pharmaceutical a device

our go we if viscosities types with the same the back different had had determine instrument then through the viscosity as get pharma information all testing to, So medicament. different part of do Q-Sub, on results that to on that of of and to to companies, we the

you hurdles their because or So information that know all that companies time it’s able to be provide more don’t just easily to the not want that, fold. as one able of to that’s to in probably do to us took someone pharma

So own and moving we on XXX(k) accomplished that think using think I have are in-house forward people I on we’ve our worked we be and the that will who Q-Sub. the

So end I am we it filed that will convinced and complete have the QX. of by

Operator

with [Operator Investment Next Paulson be will Terwilliger James Instructions] Company.

James Terwilliger

looks the pretty Well good. quarter I think

revenue growth going again I have maybe got way. asked some think in the questions congratulations been So I’m ask on that a rate. I to but different have

business a have there. the growth technology platform dental you we’ve revenue with and So got

We make-up indication the the XXX(k) of I question. not we’re see the then type for the FDA to in but particular on they have terms question, IA we asking that’s have epidural launch. market we’re be drugs class ask market, do In be controlled answer of agent different and logic of them verge the your going degrees once that? of the on the your a -- problem, can indication I we’re a see the Would XXX(k). the of how going that on or second verge or for a approval, for and we can of

Joseph D'Agostino

we rate being definite and done can through of to we testing, that that forte, response from absorption and least able which get question. their but being same we’re I FDA, different we doing so piece able have going the think difference is we from have the put the responses seems not at that same, the far the of our that to is to medicament, were really the by And again our it amount together. significantly So essentially show what the measurements that medicament the

provide that on be and position the documentation good that are So again companies I pharma to in think detail by able utilizing that that data. information supplied to now we based and

now I that before that were pharma companies but we also are we So believe had than a better that position support we in the help from conclusion. our obviously data

James Terwilliger

path it that that I think have doing business. it the guys are the response what interesting, interesting and in down right the thing you one think manage, is -- we to that’s an to question just It’s not it’s go is FDA’s is I

that the think On that does fall side, I a about is different under cosmetic how XXX(k) the that? IA or or do

Joseph D'Agostino

XXX(k). separate will a It be

too. moving are process similar. down is We the that through very ourselves platform XXX(k), yes, And different

a as you’re that dealing we’re However, probably to never government, separate instrument. about it’s medical especially for aware, the is indication each And different a XXX(k). simple with talking one devices

James Terwilliger

technology are Epidural it very we’re be with the something see What offline. But XXX(k) this that what take visibility on very But that little FDA, everyone you of work it opens we to the can questions look delivery interesting questions a up where call Epidural we like can maybe put gears and and the it the of at a or the and I -- where at the changes it’s at is talk and release got product, are drug whole a here. in think it safety so interesting don’t on mechanism. the the terms we’ll think agent switching I for offline, look coated from a I’ll Epidural? of bullish the bit, stent, a expand I some on in not stent When did when you delivery you technology. we drug future. anything you the anything on case is that’s that, lot going polymer distributors

force what one large you to looking an distribution? a in talking acquisition. Schein. of beside a stocking think we we and of distributors, distributor, for what, be data would like Should inventory, distribution what we're Epidural that thinking without would like about what announcement half XXXX But distributor see, to agreement fantastic. on large and distributor is more outright maybe Henry I you How see about should like multiple sales think the particular of second the

Leslie Bernhard

that And gating sooner the clearly will clinical we share is particular study. than be which the every certainly and we're year, that conservative. of expect that, a being we publication will have -- item, that probably is of me before Let end the that the but indication

that a And a the foot we strategy probably see. of it's this the your-self last we us, Sharon your we'd The each first this large discussed one she wish I to chapter of terms distributor forward. that these. but in could when really terms it's of our opportunity can't an you In part you. comment strategy it's approach because is a with conference on combination within distribution first could that shooting small and and in Joseph, with share you're and we our VP, phone but we were last have every agreements an regional have -- nature the But employs expected distribution not agreement on call. with like move the in question an it's to that beginning, of distribution maybe the It's

Joseph D'Agostino

James, what be and distributor. will we're looking say forward a is a I distributor distributor the distributor, stocking that

probably their finally distributor one for been is only a it that now into of versus find as goes by for instrument right and already and because purchasing. of through a hospital know, global the try path a the a the local centers pain consortium with and review approved registration of the rating management or their you lot Cosco’s Our of buy to hospitals these and regional lot has distributor before

find to that group goal our training present the to provide and locations. how that a on within program who qualified the organizations instrument can personnel So and a users training their provide hospital same to access through the least specific for the the three and assist At acquire our with medical instrument time, the country, buying purchasing of group us at regional [indiscernible] for to or to the group. distributor is the

sales operating have actually of do because these or room the people a in some they their distributors in technicians their they that physically lot Now have cases.

we distributors, spot Schein a on on Henry help with. move us that center. type and of the that work there, work a that can for and place the faster right us just able find It’s along believe right basis. and out many at company that training in as is instruments to it I So point. They're be there to to with those for are this medical us sweet those to company is of applying the great not not

with that's best with So able the and the people groups strength buy so relationships groups they're I the hospital answer instrument strength with region approval and the with that our buying that the they regional, believe stand sale quality with in instrument behind and in to into that instrument the the specific themselves, and assurance that we works.

James Terwilliger

I thank cross those of questions. difficult, for come I taking Now, I lot. and didn’t I know to think then a those way that and to you want think mean was were I that some in answers revenue best the end day, you’re your platform now, business. of could. just for the you argue provided could At dental about trading right technology the one that times the X you visibility

revenue at say You X to times that fair could be I that’s say that should even X multiple. could though

the and the what’s which exciting is Epidural cosmetic. for IA I investors growth, has business, think the I think tremendous

just So keep it the FDA work with distributors. and the up,

things back are I Thank we’ll I queue. you your of successful. overtime think and Some but be control will in out jump

Operator

[Operator questions. there Instructions] this further no at are time, And

Leslie Bernhard

Thank you call very to now. all for forward from very joining we far today -- you off you and again look much actually well to again. the not Thank talking

Operator

Well, conference thank do you thank does today’s today. for conclude call. your you. We participation That

Milestone Scientific (MLSS) 3 Apr 182017 Q4 Earnings call transcript