MSON - Earnings call transcript Q3 2020

Due to licensing restrictions, you must log in to view earnings call transcripts.

Operator

Good day and welcome to the Misonix Third Quarter Fiscal Year 2020 Earnings Call. Today’s conference is being recorded.

At this time, I’d like to turn the conference over to Mr. Norberto Aja, Investor Relations. Please go ahead, sir.

Norberto Aja

good and operator, you, afternoon, everyone. Thank for conference call. you joining the quarter third XXXX fiscal Misonix Thank We’ll in get comments. management’s started just a with minute

Before take safe doing me to so, the read a harbor minute language. disclosure let

webcast references and future, harbor as Act similar anticipate, words and future safe of the of of and likely, can Examples will of call within be other the financial contain Today’s provision Litigation Securities such expect, results. may, meaning periods. Private should, believe, U.S. statements guidance to XXXX estimate, the statements statements include Reform relating by forward-looking identified our to forward-looking regarding

Forward-looking statements changes And Therefore, time, you the update performance. to publicly future, made of future otherwise. are company these they on any from as should may information, are forward-looking not developments in of whether circumstances. rely time new inherent a that neither forward-looking any statements. and obligation facts undertakes of assurance subject future be forward-looking no risks to to the relate statements or nor Because statements to historical uncertainties, result

and Regulation call a well accordance When will in Today’s directly most of within as as financial measures to GAAP and comparable with reconciliation be the measures non-GAAP the G. all financial required, today’s can release the press of financial include the meaning in company’s in measures calculated webcast SEC non-GAAP presented website. found

over turn call Please to now to Stavros that, With of like and the Misonix. Vizirgianakis, Mr. I’d go ahead. President CEO

Stavros Vizirgianakis

results. our good call on fiscal and third Thank us quarter the you, for to afternoon, you everyone. Norberto, review joining XXXX today Thank

our Joining me Dwyer, Chief Officer. Financial the on is call Joe

of time this extremely frontlines affected has by those I us. by the start been health want on the thoughts pandemic, by impacted COVID-XX, are challenging recognizing quarter’s most is that all to particular, the on in whose those crisis. our And Before those the of with performance, an for and commenting

our the the the first we’ve months during and growth. quarter we for results quarter, many which surgical ongoing XX.X% second half of with regarding headwinds domestic of difficult In in the our saw growth decisions and make, third particular, to pleased had Despite significant division, XXXX. the fiscal X are

basis, to forma year, total of included X.X%. revenue pro been for a last TheraSkin I’m with sales report On pleased growth

As our across and a separate division channels, surgical our we reminder, wound are division. now results reporting X our sales

decline pronounced March, was February, the of January and the and pandemic, largely which While in spared particularly international a April. then COVID-XX slowdown throughout from in domestically in the into intensified more much we a did impact markets, month in sales experience saw continued

on and be International markets showed have of challenged. including China, to Italy, distress signs early and UK Spain the continued

to On into going trend front, beginning and the some hope signs the is June domestic show we continues And that U.S. stabilization. forward. of market

Overall, third the reflects an in through about with the get interactions contact division is in have followed revenue strong regular challenges, adoption professionals. the current as growth headed the division TheraSkin. quarter I’m begin extremely the opportunities, the pleased to by driven domestic by and direction healthcare Nexus, excited wound and the again growth in and once surgical our strong healthy for with by SonicOne supported our increase surgical market, of we and

consignment our business multiple division of as component platform recurring and revenue. drive model into key will specialties, all-in-one a is business help cross-sell Nexus our us growth strategy, to this leverage

the Nexus evaluation the our very results proposition encouraged with of and to a large by I’m recent early we handpieces success addition In [IDM] bring disposables, from and our value with [ph]. also the

normal. as over look things the to The coming feedback discussing was the very return detail positive and to forward months we added

more comfortable training we to we additional are SonicOne. to of integration sales OR-focused the the outreach sales-force. our great have relates a now with wound reps it selling with doing As our And division, get for success newer

I in intend the exists wound fast-growing leverage market. opportunity remain to to the that further

lies surgical wound biggest revenue One will the our in both within our and division that existing in drive for customers, TheraSkin the along for opportunities wound help SonicOne. of incremental division cross with selling opportunities

to NeoPatch, we continue relates CryoLife our bring and with the offering wound into work to our product it to As will to implement initiative in go-to-market care months. the coming

had for ulcers for this expanded Given TheraSkin costs gain need clinical coverage at TheraSkin further to to for initiate evidence or payers. and constrain trials RCT we all the SonicOne, to intended diabetic we’ve time, foot to initiated had except for by pause the

our as And revenues with the With partners regard normal. we return to challenging. to been mutually has actively a solution are to the find engaged in beneficial months China, situation coming

all as Moving implemented the various disruption other to our that our costs preserve on to to and management particular, members possible, team team. our senior took as cuts, team many largely intent minimize in because to to could significant our expense members we’ve order do is sales-force, and initiatives sales of we jobs compensation in sales cutting the resources, and

still both the support reach to put have and we plans wounds. add markets continue products look more stable adding a clients over operating and domestic team We us grow our field addressable across off highest XX XX team surgical help new at in resources in We’ve members to to to and environment our level. XXX as before divisions: members

training, to provide and surgical physicians continuing across our earlier, divisions. team our sales seminar, invest and surgeon to sales initiatives information are valuable via online both and wound As other team we I and feedback mentioned that in

long-term further operating handle mid- continue we large Commenting and our both and how make short-, we environment, current and in small on to operations. operations our improvements

In has we partner from a what terms been for needed distribution our demand produce supply Nexus to perspective. outsourced able chain, of

packs, of building our we be handpieces. and tips, cooperation more we’ve a focused existing from And and transitioned for to disposable developing lot tube-sets on vendors partners. the team have our had Regarding fully and handpieces, now the

calendar we’re about the nature impact and While it just dynamic store, taking certainty our which of impossible the quarter optimistic hospitals see in once products life, its has the that number and of are is outpatient pandemic and XXXX utilized. what performing in on will with to again of aspects the surgery facilities elective know place and future of given third a greater the all procedures

So while underpinned the difficult necessary and confidence of in timing and procedures much more resumption predict, levels will the operations. sales both in the of remains adoption us our vast logistics improvement our we will return and that by financial with to of is our anticipate of the do gives potential enter treated as precision, the fiscal to products for that and elective normalized improve Nexus, the businesses, regarding growth and our receive by exact treatment. resources XXXX, still upside This strength majority team, the our results across the we wound our patients surgical received

As health, our that a we position, and that through have initiatives it order decent put of the to position unprecedented and highlight financially. we environment including taken offer position financial our relates will detail, added stringent liquidity to cash ensure want manage in controls strong Joe a number but a to forth we’re just to I maintain in

number initiatives headcount in traveling above, of marketing directors and of of and include a initiatives. other the trials, reductions, all by the Those and salary curtailing clinical a expenses, pause reductions aforementioned

for as done. Finally always are the Misonix managing we’ve and most we long-term, importantly,

continue and support And the fundamental we we our what business, world-class do stay our customers. to We the continue in ability for people on training business of and success pillars to provide best. support to our focused in our and the masterminds the are in our invest what our investing will in of philosophy, product to

overcome the largely managing success in and while recent believe are past. to the business this it’s currently doing We’re Whether and we been the prudently long-term work have both facing the challenges, and the but vision. mindset, that on we with done significant

like the Dwyer. now our CFO, call With to I’d turn that, to Joe? over Joe

Joseph Dwyer

Thanks, Stavros, afternoon, good everyone. and

The quarter the only As Solsys actual acquired press for September on for current while reflects mentioned the and comparable held Misonix in operations today’s Solsys, XX, year privately XXXX, Misonix. Misonix results both period reflect of the prior the release Medical.

X X-month year just exclude page the current X operations are. the year on only Solsys, with period, in you’re prior as For of the the the combined Solsys reflects of we quarters same

$X.X XX% forma increased pro year. the X.X% acquired Fiscal third with revenue year, markets. Misonix million Solsys from sales international XX.X% last over domestic decline million quarter had revenue. the increased quarter of assuming for QX XX.X% including basis, quarter last the rise compared in geography from international was a last full with revenue a year, third and the On domestic revenue of in for coming revenue By of XX% $XX.X third

The $XX.X year $XX.X reflecting was our level The with gross increased with XX.X% compared represents was million the of second quarter in the about the expenses prior profit Total operating the the for essentially million year. flat margin primarily compared to Solsys. $X.X which operating of in acquisition quarter, XX.X% period, to prior same sales million million. on $XX costs

costs cost around down $XXX,XXX down of selling $XXX,XXX, costs quarter, lower from in third in were were the primarily on and foot second the the restrictions were quarter up of quarter, write-off G&A diabetic the for commission asset resulting the about the March. travel from quarter, ongoing For ulcer expenses a – in the principally contract about $XXX,XXX our from our about of R&D quarter. December $XXX,XXX study. resulting – were second the

third COVID-XX increase current the $XX,XXX QX or adjusted to an net quarter reported acquisition purchase a compared the includes share and Solsys prior quarter. period. loss $X.XX loss net per the share, of primarily an million per with year $X.X with line in of EBITDA loss attributable to to tax year relates $X.X for adjustment period. loss million We associated $XXX,XXX, Solsys which accounting prior tax approximately We of the an of of $X.XX benefit the EBITDA The The or quarter-over-quarter that $X.X loss of income during was reported net the the in adjusted price million acquisition. challenges acute of compared in

proceeds March sheet, we January. cash fiscal $XX.X with million and result flow cash gross of XX, a We the $XX debt equity largely ended Moving are we of in at debt, QX to XXXX, to our covenants. on in as in million compliance the of and million offering, end on we related balance approximately completed $XX.X with had

for $XX.X $X.X Working capital in million the up XXXX, was was from is XX, in quarter Cash December we quarter. the same $XX.X used million, second third million about March the of at $X.X XX, operations used XXXX. million

for cash items, quarter, million, used operations of uses non-cash loss, consisted to working $X and third $X.X of in million net the the For less capital.

an with positive of facilities. million our and consisted We our to existing increase used of need increase capital decrease a to $X.X preserve liquidity in and the million, cash flow of $X.X manage debt payables. working operations and inventory accounts in recognize of by receivable an cash The offset

following implemented reduction the plan. have we Accordingly, cost

from range reduced to the title XX% reductions the We director have all base base above, and staff and of salaries XX% of of the salaries.

Board of headcount reduction their Our Directors XXX%. reduced the compensation has reduced April. cash by in also X% force through We of around beginning our by at

put Our in March. is place hiring in fee

we’re We’re focused markets sales place. of not personnel, Take keeping new open on again. the hiring force selling sales in but opportunities the when advantage current

in The We commissions. reduce international of all sales the travel to travel except reps to restriction and restructured local our customers. definitely organization is for staff, sales place

has certain put company all activities significantly product Marketing shows. or postponed. events has efforts. been of principally Much Additionally, trade have hold on company’s wound includes reduced. and including This been studies discretionary been spending the development or canceled canceled

levels. based hold. to costs finish selling Overall, on the By quarter, to fourth variable DFU actions continue study we we XX% wherever lower range. and and with expect revenue reduce how phase will can. finally, then the to conserve in we lower these operating our first trim in wound plan expenses our to XX% nature, their put quarterly other be do, the on And We phases the

SBA a We and $X.X applied the April. from PPP for in loan early received million

program were eligibility the changed with several requirements enacted, eligibility the the the requirements full with we loan, times in since SBA compliance has While first when the then. was

and this continued Our be changing evaluate topic, waiting which SBA we’re on Board to of is this Directors expected new week. to this guidance to landscape, published the see

position to the over taken balance is their through scan we’ve repay Despite actions million not the a believe in decision Misonix pandemic. whether positioned and With as will expectations reduce May the given hospitals electric reflecting strong several current the overall sheet reduced using challenging a to We SBA. our resource of has Accordingly, to cash to challenges burn, support environment aggressive to to as our new we’ve costs. is liquidity by Misonix resume quarters. available reduce cash beginning every by or XX the allow loan ahead, during to next date committed set to this our the well yet surgeries $XX.X revenue and made not

and goal of XXXX. our meet for The the fourth our to fiscal quarter. well on is and COVID-XX XXXX business operations half fiscal industry in onset revenue materially growth in to track first through of fiscal of XXXX quarter third continues impacted our guidance, Misonix Regarding fiscal the the impact the

result, previously its As the not that, X, on issued a April company guidance to currently publishing With open questions. Operator? is like for I’d withdrew and the formally guidance. call

Operator

you. we’ll And the line question with go [Operator take Instructions] first the Kyle ahead. from Please Rose Thank Canaccord. of

Ian Tolle

Hi, this for is Kyle. Ian on

take Just more Did rollout. detail I focus been could major some that’s for COVID the hoping any company Nexus recently. of a I ask for know ongoing the there? area on efforts away

still XXX exceed think case I Thank you. that by you over last have XX has there? Is or mentioned changed anything the the probably consigned, On Nexus the June. units been you and units call,

Stavros Vizirgianakis

thank well. on XXX And progressing spite the for rollout to. are very track the guidance Well, much of extremely given we’ve you we to units was exceed that Nexus in setbacks, joining.

So of I progress therefore work think ongoing. disruption, in of with a exceed still Nexus, lot the that a evaluation with lot number. we’ll There’s

been paused really of result crisis. the COVID I think a they’ve as

early up And well things competitive start demand very But a held has when the a to on pick think very rollout, for we’ve we’re pent-up product up I there’s normalizing. of lot those situations. that national hoping The product. that with in demonstrated

we’ve competitive some accounts. good So taken

[ph] we’ve some a As with as I had large said, success well. [IBN]

will we to Nexus momentum as to return that gain normal. indicating is everything So continue

Ian Tolle

handpiece around are the the call you or most buying X patterns, from on just COVID the last I color you. any months? total, any just then, few be appreciated. XX% ordering mentioned is would seeing last And Thank there you. thank changes think Perfect, of on over on handpieces, were that neuro you

Stavros Vizirgianakis

trend XX%. X continue Yeah, we about purchased. continue. Neuro has handpieces see the to system Every constitutes still

see significant neuro a as However, we opportunity.

will sales-force not existing the neuro the neuro installed opportunity system build the then go back as up-sell base, capabilities and to gets be comfortable, more to think I but sell well. accounts, only to on as of neuro and customers customers to there matures we as and the handpieces the also BoneScalpel

has months is track. We seen So, of parts what had certainly continued. that, in thought on the that of terms the everything basically and in we’d a validate early to we of couple launch,

Ian Tolle

questions. Terrific. Thanks for the taking

Stavros Vizirgianakis

you. Thank

Operator

Please the BTIG. from Ryan the line take of We’ll question with next Zimmerman go ahead.

Ryan Zimmerman

for Thanks Hey, thank you. having us.

for and hiring want headcount your ask Joe. the couple end a off comments did on you just But, your you to questions, one, Number Stavros So end of where to on one, costs basis, variable, your the your about where for sales further. did you. appreciate cost your on cost quarter? is I I like expense, going What holding savings want ask quarter? look fixed Thank you the just And basis. to relative when Joe, forward? think then, or

Stavros Vizirgianakis

Thanks, for joining. Ryan. Thanks

than the on wound XX, sales say, would on And and and headcount, so managers representative. we the XXX that’s our we But of force had. the surgical sales side, one managers, I know, XX indicated, priorities. that less reps of terms sales on you as sales In field keeping I sales bit expenses resources, ended the think, top Joe ended and has intact little a been

hiring I fill think that back fill the then when we’ll see return X things stabilize resume still when normal market. positions see we’ve back X and normal, or the we start to in it got business accelerating, we

everything of I sales is thinking think in So our terms around the force. preserving on track

the keep engaged programs, – FYI, daily to basis. done an the of sales-force also We’ve on a lot period just during a online

marketing there to think nicely. over the I up stepped quite team you. has Joe,

Joseph Dwyer

get being costs variable with a me. I back down that you did, expenses can we little on. bit you give a I but but the don’t later to it variable with have it, the on be on versus right, guess, I can down at revenue take better fixed, I Yeah, also, may are

Ryan Zimmerman

because recovering payers the business I to over No get you wound wound hospitals, – broad to – wound the a those the people of COVID. patients problem. given see patients held keep or their want quarters? guess, up market I better, extract help little to strokes, to just And Stavros, to kind how only of want out wanted the coming then, ability

than higher it’s others. think I

So thoughts I you that. love for the just would your taking Thank question. on

Stavros Vizirgianakis

Sure.

the business, lot we what a decelerated think actually that business I quicker wound saw the wound is on surgical business. the than

these seen we’ve to of related think that business around So cases a the end they saw already of within significantly off elective And we turned put from to be that them deeming hospitals down. were number numbers a are that of needs a pressure patients factors marked instances in in wound the were I by decline and and all lot that, physician. could administrators the the many was wound – March, with that

outpatient other fairly like pick So they’ve the back physicians’ come seen significantly in unable we’ve sites in wound market. care the treat the cases seen hospital been in We’ve hospital. up patients to offices where of

chronic side sales people also access in you’re still it, been able a surgeons And our have engaged at difficult cases the those seen times there. fortunate been those cases been to that to to wounds you have we’ve where have on surgery, been really wounds. essentially difficult look we’ve heal the room salvage really we’ve the But that got on for in limb

affected a also more we’ve something more wound lots or over during demand. improvements surgical, wound you’ve than is that steady because a of the is improving one. business small gradual lot on recovery expecting the And dramatic, got pent-up surgical we’ll the think, we’re I see on seen The wound in less here. I think, what of week this stabilize, every certainly sideways

these the seen are Also, center what settings, very normally congested. lot where is a we’ve that of HOPD in

us as de-risking. gives – wound. used, it’s optimism very the But what seen decreasing increased But particular. areas doesn��t that in there of going think, quickly of we’ve these longer to is I that be hospital forward, the looking as come because marketplace, to surgical weekly on spine will X well at weeks the some or to every indicated with in will that’s think I physicians will really positioned take recover be early bi-weekly, be so think instead continue there where indication, surgical are well I certainly of off load

Ryan Zimmerman

Thank Stavros. you,

Operator

Please take We’ll Instructions] Alex the Nowak Capital question [Operator Group. Craig-Hallum from the of next line ahead. go with

Alex Nowak

afternoon, Great. everyone. Good

last volume that and compared on surgical impact the May, you’re X levels businesses in have what and to on get and the Could a past few follow-up did both hit you And back both first at pre-COVID Just here weeks to you April, what from the starting case question, quantify help you us saw level in much then Stavros. May? see How in weeks to seen trough come starting here inward? volume standpoint? in in

Stavros Vizirgianakis

pretty as hit. end significantly March, the I at would Yeah, said been have of

wound then, So it And nicely. we they looked about still from the started month, I’d at the volumes pretty in increasing declining. say, of April, significantly were middle

cetera. like infusions. orders, there, we probably a XX% XX% probably a and Those think your that, was a in what as a have daily would And shipped, of spine and I upward pediatric a seen versus we’ve bad wound combined monitor et steady, things. was increase, April ended sales under was pretty is of still on as And say number put there significantly. unit, side the off I we laminectomy spine down all like been plan. more in units or So drop, tad particularly routine deformity was a XX% surgical surgery

steadily been wound So and up. has going increasing

but field it’s in is a uptick the more over opening think surgical X plateaued the significant seen weeks. we’ve side, spinal What hospital the On we haven’t yet. certainly as start cases seen up, last in activity I

places getting seen hospitals ready predicted, is around if be could bringing the look surgeons gradually. thing very, and that back, The back opening back, the other think country, is very be seem coming. that surgical the up still are getting I pump-up But haven’t northeast surgery. it encouraging But is dramatically on at for we So physicians all that patients as side affected. to you but we

yet. of the a I more team surgical XX% say every the active but remarkable week, nothing think what I on the surgical sales, side So we’ve seen can increase on week-on-week

Alex Nowak

then to does or here of of That’s wound due expect helpful. out the see change TheraSkin scenario? you that shift would SonicOne And continuation the to cases Okay. new kind trend proposition of of how really under value hospital COVID? the more a And

Stavros Vizirgianakis

people done I going certainly world think, hospital just that, patients to particular, Yeah, post-COVID, will are think that be think work being offices. be is treating or I wound more at and of the physicians’ definitely I to in outpatient going settings don’t to, change in there other physician, care. look it’s the wound I going departments, the in think in

a surgery at – terms I in seen still combined wounds basis We’ve good really difficult think and a salvage using the SonicOne limb in proposition that of in pickup X the the to complex the proposition value strong for is O.R. in technologies very the interest value heal O.R. in

focus from So just that, be crowded lot combined wounds, of SonicOne there’s on feel over outpatient from this and of hospital things, a – of traditional there. hard to the TheraSkin, we heal environments using to office away with the kind this side shift and physician see on a us whether going

products are did the discussions frequently as around physicians now in they having think, more apply to open have that cost. as I to they don’t

for think for is frequently. new days, to go, but provide it’s seeing going they something opportunities. I for So think, everybody, was what solutions more we we’re of interest learning to from early where That’s physicians less we’re people look as an that this new treat certainly I can

Alex Nowak

more relatively salesforce scenario? potential you the and How to thinking And under centers positioning whereas could are the how post-COVID sales about you there to in environment spine vendors? world succeed outside restrictive wound this be are that

Stavros Vizirgianakis

number got we’ve think, I Yeah, of a initiatives. Alex,

as to to up Neuro grow, more on so sales is And bigger teams going be us think spending business. the low a for given the spreading on also and to focus it opportunity just from certainly IACs. new develop really focusing the wider, centers solutions. side our the centers, penetration internally There the there, before core point it’s rates on I remains mirror smaller products going think, I are – think focus time well. us there’s it’s sales team significant and the of a was to I then we’re

we’re have of before hoping the product where into calendar is also then at be option one that the market X we’ve soft to we microdiscectomy, in new to product goes like looking procedures end rooms the launches is which we’re both spinal can So that tissue offer for going a typically surface really of year, arena. agreements. bigger, more of less before, sector for which really a never aggressive And the bigger areas tackled invasive a the size, management

answer going procedures new we’re after. question, wider we’re at point, the products, that market. how your it’s core new That’s looking So

Alex Nowak

the That’s to went Nexus from then placements quarter in one growth growth, out detail question account business where there more if are hear. there one you surgical of on the more good growth? to helped Nexus are a a the XX%-plus And just times really drove Or this any just how revenue Can lot that revenue live there? provide that drive and I quarter some could. just

Stavros Vizirgianakis

I X.X month certainly think normal we had, would combination, Yeah, a say, written I sales. of

force had whole with the first time, the sales access I Nexus. we think, to for

look not pipeline with pretty pipeline, the post-COVID within that’s that up proposition pent-up now, hospitals, higher I’m because salesforce has and Nexus was put even the if equipment, capital, do we’ve we ever at we hospitals, to constrained said, But And the value in look enthused, that road. to are there only we be our managed thing more the have budgets one the demand. pipeline we’re at that before. to hopeful to that the down filling the the that that together. than but quality had we resonates being volume if is the in So look placements that going actually now at

the elsewhere to at money be we’re if in value proposition Nexus, freeing And with used up hospital. you look our

displace So with I forward less We’ve a a we’ve – have in be of model. that that surprised more that the because with to actually in the been market, discussions the think validation lot going that, a ourselves look interested able source whole of we hospitals to our to probably contract. had been one dual significant established it’s we’ve players be audience interested

that’s anything a driving lot don’t there’s of Nexus that’s think growth. just There’s in not thing a it’s numbers. one-time happening. I things one those So –

can be numbers in normal growth especially circumstances. life always have think, quarter-to-quarter, I you bumpy when the XX% a

good this. I lot But a is just got it’s you’ve right being target think, The the there’s think force. team sales a product, on, I now maturing going very on

demand. So I think sales it’s the have about we to just supply we we engaged, execute that really out to force execution keep if continue, meet the quarter-in-quarter –

think, of I Nexus. good to continue we’ll see in growth Be very bullish it.

Alex Nowak

That’s great to hear. I appreciate it. Thank you.

Stavros Vizirgianakis

you. Thank

Operator

ahead. line the We’ll with MK of go Please next from Investments. Kaufman question take the Michael

Michael Kaufman

get like your it is? you in now problem. Looks sure cosmic light to wondering the doing I’m you’re of just right well. guys this costs all very the revenue I’m level handle stuff what’s Stavros. pandemic Hi, streamlined breakeven will

Stavros Vizirgianakis

We’re not giving guidance, Michael.

fund have working use make available and that I our that to capacity think debt make cash operations that we can cashflow goal. we we existing sure the that’s positive, to we’re still the sure to

Michael Kaufman

no, But, question is… the

Stavros Vizirgianakis

We’re not be indicating how percent to or an of as much revenue breakeven. that’s going expense point a of view from

Michael Kaufman

breakeven. you [indiscernible] have to as so or in concept Yeah, revenues what no you’re

Stavros Vizirgianakis

got give we on crystal we because to the we’re – providing call. that you, do concept, clear We a to not guidance going be just can’t

Michael Kaufman

your you’ve expecting. expenses you’re your is said. which revenues, is are restructured and from what how But what this No, guidance you not clear but

Joseph Dwyer

Right, okay.

want as if in the to that need all growth internal the we’ll sales-force our guess, starts lean So traveling, now, here’s to. we’re to to. can able out I what pull line, and back got be working run and if the the to we’re which of we off some investments, that Maybe shows trade feed the and own looking to, adjusting take we projects, the revenue so have continue. some expenses at, is to need going mean business, we we operating plan DFU, we’ve the time into expense business starts accelerate, starve certain we’re if of the off our

intent. not our That’s

is need cash do to a we intent Our within constraints. run healthy, to continue our operate know to that so we

aiming… are we So

Michael Kaufman

…yeah.

Joseph Dwyer

Yes.

Stavros Vizirgianakis

No, I over in think, breakeven. to X we’re at you can the some we next catch that that be the comfort targeting want quarters, fact

That’s we’ll think you business away. manage give X organization, the a the get today. goal we’re I quarters there. So the hard can’t we as and we But think number –

Michael Kaufman

Certainly, you it. to in But Okay, thrust expected feeling. to sure world But not it. upon this know a ever this the that trial fire. me I’m guys be nobody can do gives nice going you’re us. warm is answer I by thing

Stavros Vizirgianakis

look, no to team it. playbook the I that Absolutely, all to the think And we’ve think manage I very the really for has the really challenge. risen we’ve measures productive to taken do continued crisis. there’s we’ve been in And that. But

hardship So be spite I’d doing well. in really lot needs done. of lot because team, of what people continued like to just hardship, still to commend They’ve the financial on a and of the a haven’t as waivered. They

business, you becoming has in smarter the us will These of basically this that of us. brought running the things we look are know, emerge at along company. how how test a out tested crisis look look us. we at think as certainly more made efficient, But, I So terms it’s This we business. stronger at to

have the take done I you can that’s comfort some So, for the challenge. that, on think team

Michael Kaufman

gets up bit. little headwind. on people to impact so the brake a bring with There’s people efficiency finally you less when a your speed, Since positive so really going a so you’ve have of also to grown Right. to better much many stepping the of

of kernel So there may be in thing. tiny goodness this whole some

Stavros Vizirgianakis

correct, Yeah, correct.

Michael Kaufman

Okay [indiscernible].

Stavros Vizirgianakis

okay, All Michael. right,

Michael Kaufman

good up the work. Keep

Stavros Vizirgianakis

your support. you Thank you. for Thank

no questions are comments or to turn management at over I’d for closing like further the this additional to conference any It back appears remarks. there time.

Stavros Vizirgianakis

operator, us. you us to time make world-class you, confidence Thank for members dedicated you a the place you today. and company. to to you for to contributions team like the Misonix and Misonix my everyone the talented thank opportunity for spending extend thank special this I’d with to to continue also I’d very thank a take extremely like in

And expect time. adversity best large case again and had we’ve in dedication. to patient we outcomes. part every forward once ensure to the healthcare significant due instance, the to Over to from fully to and to and the with look partnering overcome their be have history Misonix, endured resiliency We in that time again providers flourished, then of

to can proud chat XXXX look of patients meeting quarter additional Norberto you to contact improve you U.S. to Jennifer. across fourth firm questions speaking and interim, report We again when the you’d and management, health and Investor fiscal any In the lives of our Thank worldwide. we or our with contribution XXX-XXX-XXXX, We’re schedule Relations the to our results. forward and or goodbye. a should with like at JCIR have you formal please you if

Operator

participation know for Ladies Thank concludes and may you your you and today’s this gentlemen, call. disconnect.

Misonix (MSON) 12 May 202020 Q3 Earnings call transcript