ANIK - Earnings call transcript Q1 2024 | Anika Therapeutics, Inc.

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Operator

Good evening, ladies and gentlemen, and welcome to Anika's First Quarter 2024 Earnings Conference Call. [Operator Instructions] I would like to remind everyone that this call is being recorded.

I will now turn the call over to Mark Namaroff, Vice President, Investor Relations, ESG and Corporate Communications. Please proceed.

Mark Namaroff

Thank you. everyone. afternoon, Good joining Call for Anika's Quarter First Thank Webcast. us Conference and XXXX you for

Our release the and Vice and used Officer; Chief be on earnings supplementary market website on and the QX press anika.com, Treasurer. PowerPoint today President, of Dr. the located are Mike and today. the slides discussion close that is are available as our will today for Relations Executive was Investor the Chief Executive Officer issued Financial Cheryl me Levitz, With call Blanchard, after President

slide Please take a presentation moment and to and open #X. the Slide refer

are anticipated please these Before on and our the about performance. no presented beliefs and defined that or begin, materially call SEC the actual future our today are differ factors from Please statements achievements. forward-looking expectations certain risks differ forward-looking from future could subject performance for understand company's we statements made The in more events during filings our that of the recent and based risk that could certain results make or see Act also uncertainties. should data Securities statements current as statements Exchange to constitute These today. affect We results, occur any update most statements to information obligation XXXX. financial

way our A net with aspects GAAP presentation believe an non-GAAP In provide with results the performance. reconciliation used addition, adjusted during adjusted share, of reconciliation which non-GAAP end in measures. the presented But most of measures slide financial they GAAP and of release. measures, financial to and measurements non-GAAP or adjusted business. viewing addition understanding quarter additional financial the We when to available we comparable even XXXX include margin, in may adjusted the provide our first the press measures, which financial results are EBITDA, an income measures of call, earnings several the to gross of GAAP deck our adjusted accordance GAAP that refer at complete are operations adjusted and considered and more of per

like turn President Cheryl our to Dr. Blanchard. And the call to Cheryl? and now I'd over CEO,

Cheryl Blanchard

discipline, joining afternoon, Last and Slide market-leading to everyone, quarter, path actions and as beyond. we delivered to and maximize of highly the elements Mark. differentiated turn expanding value business, and fashion position stronger Pain XXXX thanks With to to we're HA-based cost in focus for we that confident are continued us creation XXXX well we orderly and start strategy the our our a year Good drive we good our on us. regenerative track results in guidance. outlined Please strength continued core and Management Thanks, accelerate X. solutions optimize the an and performance pipeline our platform to And are in to achieve profitability. even our OA taking

first OA was year, overall another the last X% QX in to compared In quarter strong our by up Pain quarter, driven Management. revenue

putting reductions, initiatives profitability deliver cost including growth cost count realize XX% the in million EBITDA annualized the path $XX that reduction cost in last we These about significant on adjusted will Anika completed XXXX, quarter, also year. spoke head accelerating to Anika savings the our in enable We to savings. for

review from now quarter. the key achievements me Let our

next-generation Cingal to non-opioid driver over representing in our commercial position agreement of Cingal, pleased Canadian States. million, now the XX the and Orthovisc as we're XXXX, product leadership And through with Monovisc, great existing favorable order market pain on Canada. outside key countries another exclusive had Management some Pain quarter announce revenue that growing a year-over-year X% OA demand established increase remains distribution the United with we've partner, First, building OA Pendopharm, choice sell of the market on a in $XX.X to extended timing.

We continue U.S. that in be and confident will in opportunities we to a Asian truly markets, partnership see and remain approved exploring it Cingal the is select are game growth strong changer when

as a feedback from Type-C continue FDA that regular to end, FDA the response recently during requested our interact received we on To with year. basis, in to of April were by we the that in meeting proposals the agency last

Anika there's the While some FDA clarity, data. feedback will require what provided FDA information additional needs nonclinical for regarding

back We questions. FDA the with have to reverted

have from said FDA. we've begin nonclinical the the received previously, As we clarity remaining testing we will once additional

Preservation Moving million, $XX.X up to X%. We of and revenues Joint had Restoration.

energized more innovative of We mature increase are our some as have we quarter. early our products, products from new offset solutions. of work good seeing of results several diligently which the launches during new progress teams These recent to adoption our following the headwinds the

Let describe the the are regenerative side. progress me first on making we

double We update. its System since November, completed market with the our now since cases XXX our than Implant have limited surgeons at XX using is HA-based more over the last end number last Integrity of which release

track foot this applications positive business adopted and of the feedback incredibly of half it receive by becomes the our The to expected year the market in and repair but continue back full is ankle. surgeons to in increase in XXXX. cuff increasingly regenerative release in for as remains other clinical rotator on for such growth middle only tendon not We also as repair

XX very outside do in selling the now over well to countries. continues U.S., Hyalofast

system, As the Hyalofast, reminder, granted repair HA Designation single-stage FDA. our cartilage Device was Breakthrough by a

into XXXX, with expect We a this product year opportunity. differentiated begin plus by market target PMA entrant filing U.S. creating highly cartilage launch repair $X to billion a modular the the

on platforms Hyalofast, has additional near-term leverage basis publishing the for With great now as to differentiated regenerative clinical feedback products. XX-year likely regenerative on Integrity Anika highly X year and data this

to future. exciting providing out pipeline, and we about in our additional forward We look to regenerative continue build the details it

of X-Twist X-Twist since milestone real been fully We have a been is us. also now PEEK, million XX,XXX U.S. for remain than which are a encouraged X-Twist the More has $XXX which Biocomposite cuff by of rotator product we implanted the us. entire year, addressing the and last performance Between this early version market. now month the Fixation standout version PEEK our release for System, anchors limited globally the launched

that system more Shoulder shoulder facility including System. Lastly, due of We by ASC decision surgeons are approvals. encouraged distributors our to in obtaining the execution, regarding The training channel recent slower remains the use the complex arthroplasty tray efficient centers actively to pace RevoMotion RevoMotion now improve said, to sales cycle, to and CMS design. we our are system. their and That engage surgery taking with safe X-instrument reimburse the surgeons commercial procedures our anticipated of to our on a and and regularly we're adoption Reverse effective than due

of build enhanced our to proud done work momentum, business. across the we've our I'm [ on ] execution

will that us laser-focused while achieve invest value are on objective in remain greatest opportunities. our this maximizing We continuing our open to shareholders to and for help paths

the for have Anika Anika, mid-XXXX appreciate period a step done On thank in change Mike all significant Mike I behalf down years. following June strategic effective joined as Anika decision like the past us a the Mike insights Mike leadership separate of His for positioning acquisitions. while of and of everything has all to over him for exciting today best. company earlier future. an helped CFO X. at note, our and made we personal wish that to this navigate his X we announced On X operational I'd Anika,

large comes Anika experience of small as Griffin more years XX public finance public and new our CFO in to on leadership to both X. and excited June welcome with We're proven creation company other at than roles value and record Steve CFO a Steve companies. senior of track

meaningful We you me looking and are will of of glad responsibilities. smooth build from the benefiting expertise growth the that the transition on business. profitability closely a us near achieve through potential with across confident in Mike remain to to will Anika We're will the that to momentum end work forward Steve during to with year all and help to term, the Steve ensure continue Steve. time, and his introducing and our

a now I'll results. it financial over you our words Mike, on for few turn to

Michael Levitz

much, very Cheryl. you Thank

Arthrosurface the family, a I to I Anika of very of COVID leave than the of expected, COVID time and absorb the and months pandemic. longer the spend opportunity first more While decided its been impacts few my just acquisitions of have the the company, to Medical its it much to starting team with midst lasted am was When part years. widespread. X have thankful Anika to I last for joined Parcus more in over were the

this products meaningful portfolio making the has The and strengthening of same and navigated sheet products pipeline challenging expertise, differentiated Anika's the mission and thoughtful balance and generation. targeted healthy and foundation that tremendous fulfill and company to and time, at opportunity for both with HA sustainable growing to the a including shareholders. leverage patients strong, cost our maintaining established meaningful OA strides, reductions a and core investments, to cash while advancing period business made deliver its and Anika's support company has value pipeline customers their its and is

last closely I so and finance success such next globally Anika supporting a a team forward Anika is as IT, and with Directors. appreciated core dedicated my to the years for Cheryl, people opportunity I truly X many work on to that focused and the leader resilient come. talented values These lives. the joining way, following and in with the to high-quality a across right team, and Steve Cheryl CFO to who smart have years, peers of transition the Anika's driving and with exemplifies with is quality wonderful, doing of products Anika's things improve right Board look his

to will X first in stated, presentation, please be against XXXX. of the online the Now year. all through I Slide prior where period for same the results on will comparisons refer the Unless the quarter walk otherwise

by report Revenue international growing the $XX.X pleased Mitek quarter OA our due the order as in timing. total demand largest X% in grew product million to for and States well first our from to both to as I'm family, as million, revenue $XX.X first growing the patterns to J&J demand Pain increased as favorable ordering distributors. in Management, United from favorable quarter driven well

Restoration X-Twist product our certain launches the Integrity. mature growth and our quarter lower X% partially Joint led driven Our revenue sales in and more million, in increased products. $XX.X was by first of This offset by Preservation U.S. of by the to recent

to demand growing Non-Orthopedic year-over-year on million veterinary revenue the high-risk sales. timing increased our XX% in $X.X and Lastly, order

to Moving margin. gross

from up first Our XX% XX%, was on gross quarter the amortization. in intangible lower margin

margin XX% inefficiencies of was gross and adjusted the from of timing XX% in due quarter. the reserves quarter, the in primarily Our to impact production down

operating to expenses. Moving

quarter million. new to totaled regulatory continue operating addressing Our effective requirements of to key first expenses costs as well operating and reflect the products launches cost nonrecurring That's as in sell the down EU products there. $X.X our control the the following $XX.X expenses million. lower in fewer These legacy

of the quarter items, items. first reminder, As Parcus severance operating year $X.X million incurred activism last in nonrecurring year Anika costs the expenses and the a quarter million this first head costs. including In shareholder costs first nonrecurring shareholder the for of other settlement, reductions for $X.X took count we in and activism comparison, the in reflected arbitration quarter in

net $X.XX million or $X.XX compared of million for quarter from per per $XX.X $X.XX adjusted or $X.X of or million net generated loss XX% a quarter share, an $X.X loss diluted net -- excuse share. $X.X first loss net We per was up per share me. million of Our in share, the or the adjusted to income $X.XX

net earnings call, compensation, highlighted of EPS year, presented. revised adjusted exclude calculation and calculations and our reflected all been the this to revised this last for adjusted of we tax, on have periods income stock-based net As is beginning

Anika of to was primarily of X quarter and X%, up due million, And $X.X The the revenue EBITDA our $X.X EBITDA X%. benefit up from from point to combined the million. a the growth in a negative in margin improvement quarter grew reduced generated spending. adjusted adjusted both negative

the costs regards below cash Lastly, outflows improvement flows capital our million $X.X million, lower reflecting cash nonrecurring and of just in structure. first and quarter, were reduced with $X.X Operating from a cash to flow breakeven spending.

ended in debt. million, the expenditures quarter Management no capital up our million investments with million, product Pain growth in $XX.X lines. $X.X $X.X cash and manufacturing reflecting We supporting in in continued totaled capabilities, OA the Our quarter

X. to Slide turn Please

for like Now of $XXX I'd guidance our outlook to our financial X%. with revenue million, full date, company Based XXXX are representing on total to our progress to $XXX of for X% million review growth year to XXXX. we reiterating

growth on to OA In grow $XXX patterns Management, This ordering to outside impact transfer On higher sales, up based $XXX Monovisc second led of revenue year-over-year. last quarterly globally X%. half expect also above-market above-market compared timing order we timing the million, to of to been quarterly expect of growth is basis, and the continued shipments to million with in Pain Cingal we U.S. be lumpy growth of continued X% to XXXX This unfavorable historically end-user timing to offset they've the a continue projected by revenue year, reflects in year. by the as

we In expect partially million, legacy $XX.X Joint as to revenues million sales products lower to is of our to X-Twist Preservation offset and to XX% $XX certain faster by growth continue Restoration, by in products. Integrity up to grow new and X% led

growth We continue to which towards of of seasonality the release half Integrity, to expect the weighted market remains year and schedule. on that be right both to second due more the full normal

a XX% be to $X.X Non-Orthopedic, to XX%. decrease million In we million, expect $X revenues of to

workforce in perspective, deliver a continue reductions and million we planned of are executed to adjusted operating With expense annualized XXXX gross the other gross expect spending XX% From regard first the track for to $XX and the reduction on on as margin to quarter of savings, previously spending XX.X%. to announced. we margin,

the we for to Integrity. Hyalofast impact for will such of realized regenerative first plan States portion partial use said, in the timing actions. the a module As as well of fund a HA-based savings to clinical United have be XXXX, products filing as this additional the due we our follow-up as year PMA In of the the year to

growing We EBITDA least over continue increase $XX to to adjusted XXXX between to of million, for of representing X expect translates an EBITDA to at the over at adjusted This points, the in improvement $XX XX% year. XX% be and midpoint. margin million our an

We on last Pain this Management even positioned focused positive part from to cash income and net operations, be in adjusted reflecting continue our year. year invest manufacturing flow positive free higher capital to we deliver timing this generate in as OA year spending

and XXXX, on track momentum market-leading summary, demonstrating our our quarter for from core was significant growing products line is bottom And strength of start this the franchise like solid Integrity. to new first year. In a growth the OA Anika

I call will turn to back now the Cheryl.

Cheryl Blanchard

our is We'll shareholders Thanks, orthopedic of continuing of clear be improve approach, need of With the exciting focus Mike. the the Please we to remain the is will we of care. of It's to none necessary on and of will X. proving It's pipeline, still we Slide we appreciate to Anika and the continue right We to work the whom days, optimize their effective portfolio investments. product renewed early path that our to we nimble we're in and lives deliver colleagues, our millions patients value early as our appreciate Anika our this to performance. steps as turn without Anika's take profitability. are intervention confident support possible. that accelerate path. And support on in

the line that, With open up for we'll questions.

Operator

question comes George of Your the Stephens. from first Instructions] [Operator from line Sellers

George Sellers

on Maybe guidance. just start to

quarter pretty double-digit another to strong I'm then revenue in of we those strong here. Just guidance? year system, remainder those How get curious. think limiting Preservation sort Or should Restoration to should the the about the quarters your the through The about what's to and new think significantly outperform. contributing like continues of with we a growth? how and guidance? couple OA comps, stronger of tough It cadence increase also, Pain was curious. to of more piece about the of should patch that throughout HA-based think sort growth Management some burn products business the XXXX for of how we Joint just And

Michael Levitz

Thank it's your for Mike. George, you questions.

Pain Management. guidance First, on OA the

growing we business is we mention that continue and last is to of mentioned above market. One the that wanted the things underlying year to

is & big quite timing deal volatile know the things that followed order we have we Johnson One because that like well those -- with have companies do generally this of company Johnson.

that that year. inventories. so timing last and very sustainable. their called was And out QX said definitely high, was period was manage that in occurred how of year last not they and the we That just

a second tough have because of that. year, into as this go we So we comp quarter the

we the the for the guidance is, year way guidance. this again, no to think our year. so There's to change about reiterated our And cadence our guidance,

for year the the higher upon I Pain because X% to So X% transfer half than Management second first timing to half for business in revenues just be of of shipments. expect this OA year-over-year our do the the the year based comp.

was QX QX this year, bigger. will year, last bigger be So

So that's how the I would cadence. think about

see you'll it down. basis, on a we So we expect the frankly. quarter. grew tough next not any comp be given will I timing because that's But guided to just but X%, of the quarter, X% X% as or of this last challenge year-over-year year, issue would

middle growth the that this The the in X% to reiterated Integrity cadence, this as Cheryl in -- so right said, it right driven knew is we call, guidance limited the track and launching With second market we're we about the seeing product We're joint were sense on of And growth the XX%. that. the the loaded year the we half what very product we track. of to on year, is in was be excited to do regards release, to remain last the on preservation going that we said year.

we so again look guidance. we've our joint at as preservation, reiterated And

both the our the expect as into and to continued full ramp well growth Integrity be to as market stronger, half We release due new moving second products. of

do quarter first what We exactly are Biocomposite doing when expected be gave have guidance. we a really and launch, and product very to to X-Twist the to pleased this our we X-Twist nice continues it

helpful, that's George. hope I So

George Sellers

all to competitive you that. helpful about curious some I'm just various And just of seen are the thinking at other We've beyond curious. approved. companies. really potentially when year. then on some color. with Has dynamics this studies announcements the the appreciate That's I'm your we offerings change how I about Yes. looking any maybe what Hyalofast HA market injection from to is there the competition in competing beyond in market that's bring this been table going year? look as or some potentially perspective

Cheryl Blanchard

is you're Cheryl. I make I Can referring just answer sure this George, question? what your to competition ask to, just clarify you to

George Sellers

Sure.

their results specific announcing So be Phase trial example from ReNu Organogenesis would III one the injection.

Just curious momentum that that's then And competitive as CartiHeal in also concern. you if market, offering the and products all Orthovisc to a competing like if gaining view a Monovisc.

Cheryl Blanchard

Yes. it. Thank that. appreciate I you. Got

any because III on So on their first me Phase to Organogenesis didn't they did provide just a It's that difficult trial. announce for readout clinical comment data.

So I'll once from to their I But perspective yet. any thought have competitive data be a didn't see out better data. in a that a about position they put

the on product perspective, implanted. then they'll And launching the to be that bone CartiHeal here be the remove competing to MACI situation space be with cartilage with side, and obviously, CartiHeal's a a CartiHeal with repair product with -- from is the where healthy play has soon will into

osteochondral So defect I will smaller being that repair think be the going market. it cartilage of the a after segment market,

I'm we this of excited this market, how the PMA bring shelf, based experience and a off on Hyalofast, OUS It year. got surgery. and take our modular doesn't XX publishing to market single it year. very bone, that to is second stage data that filing and in healthy require commercial is plays we'll that the We've likely something you know that start require doesn't to years

inside the very United excited countries outside updated we're States. compete with United so that we And States. now sell over the XX just in Hyalofast to We that

Hyalofast, and it we've waiting like the United go for to So in surgeons I'm States. with got ready here

Operator

Jim line from the Sidoti Company. Sidoti from of & comes question next Your

James Sidoti

about business? you that of you those the to fourth sell the you growth a was talked down quarter joint growing forward? mean I rates will Can the you as products? little and of going from Are products sales the continue some talk are mature deemphasizing more 'XX, of for quickly. about those It

Cheryl Blanchard

with is you question. thanks Jim, I that products mean our over implantations very tell feedback really limited the feeling X-Twist. announced doing our new are there a in Integrity for that get LMR, market we're an well. XX,XXX release, just market we're I that and would Yes, the we of was doing well from even goal where in real the product. pull to

not a an and that of well with headwinds products. us fact very we've continue subset facing mature and distributors we that double is to We growing are doing talked focus that, And with more area we our that we on have digits, are happy of that are currently. some strong about while for the

on say clinical well, that And headwinds. new the to products we focus have are in execution really would of So growth great that differentiated those products continue just face we commercial have again, some of really on driving and doing products I and the great results. that the in new business, those are are and driving

James Sidoti

Okay.

like products you're those of to products. going to up sounds it those efforts some and maybe So for marketing sell continue the step

Cheryl Blanchard

to are continuing products, we we to Yes, them. educate and those continue sell on train and

again, quarter just our of some a We make where highlight, the put business place -- our reduction continue part that last one in them. announced is that of to investments on again, drag but kind on no in initiatives cost of adjusted will I the we with EBITDA. longer us that one segment, report things really a we

been we've we're really And and can about investments the making our think thoughtful we where are that to we're we on more there that drive products how differentiated. focusing invest growth. So

James Sidoti

FDA come to data it they long working get And figure FDA? you you guys nonclinical about to you we the that Once out take to to do Okay. if to what Cingal, require. data switch will understanding, with how then talked the think an

Cheryl Blanchard

question. great a it's Yes,

to As question. will I complete answer position in we're soon clarity need I better that to as that testing do, have a additional going the nonclinical be on to

remaining testing to ago, us is to has nonclinical talking been just the what about. not reiterate, trial. FDA company the just a So It that talking is about doing years was really it not is it some -- significant -- the the clinical -- again,

to the be clarity, be as have that talking first soon As it. about I I will one

James Sidoti

have your with your it. quarters, past management, And been growing nicely. on then very, even Okay. the few very pain numbers Got distributor, the lumpiness numbers the to

time last growth. good [ ] seeing they're some competitor reported Your the

that is procedure very Is market pricing attributable to healthy right or that improvements? like growth feels now. more it So

Cheryl Blanchard

Yes.

think things that have a couple there's I happened. of

companies ASP happened out I that think all, more that subject were of anniversaried of to First the that have changes the dynamic.

this just see I quarter. think happen starting it really to

to So period dynamic, of start ASP a dynamic. that I of of because time, anniversaried see think [ to With market, over a growth out shrunk unit that actually the dollars because we're have companies market in that from of that market U.S. complete a in that couple of bit ASP of those some shrinkage it although growing dynamic, That going never the had ]. a perspective. dollar stopped

And the of so of single-digit treatment can kind of for knee a It it replacement. the be with people move to we continue market. on in total kind that to States. And osteoarthritis United see a low is repeatedly growth immediate used is to steroids that frontline before healthy market along release still

have healthy fundamentals. does continue to So market very underlying it

Michael Levitz

mid-single the for what And last healthy I of consistent I But has been couple Monovisc low a over healthy. volume a seeing our the our the on fairly essentially very at Cingal fairly said years consistent would But just our pricing basis. year-end, in with injection add, to in us, really growth we're and digits is growth in consistent volume. products decline

James Sidoti

the XX.X% year. X -- gross of adjusted to was quarter for margin Okay. ones margin Gross guiding you're but And XX%, Mike. then quick XX% for the

Or in mix favorable first more back do bunch So of is the quarter? you much to the half that because become product a year? in of expect onetimes of the

Michael Levitz

actually. both, Jim,

in go things year the quarter. number to onetime quarter, the had we as through a just mix we favorable of compared expect and the we So first

the we inefficiencies So had got into production period. that amortized

We That expected built our was that. into guidance.

Oftentimes, QX. reserves some throughout had also those year. We were recorded in happen the happened the that in period. It

the reiterating expect why for comfortable -- the so the our our felt in and of with to we that that improve year, for guidance. the year So guidance year we're line that's we balance full

James Sidoti

is And severance in line? Okay. SG&A costs, the of the that $XXX,XXX

Michael Levitz

in so areas in The split they're split they're which to and they areas SG&A. research the development the -- between and evenly recorded related, and severance costs were

Operator

of Research. question Petusky the Your from from next Barrington comes Mike line

Michael Petusky

half of how how When and of just of cost -- I'm to QX did sort sort versus March, Did this the that much is sort going When happen? sort the did on curious impacted I'm happen? reduction. March? QX. of the curious Like second that severance in that happen actually that of So of

Cheryl Blanchard

was the an so Yes. have end it didn't Mike, QX, of yet really it impact in at QX.

going So year. of year an quarters not this to annualized X basically see but you're until next fully on impact that

Michael Levitz

a cash out the perspective, quarter. the was in second from severance paid actually And

Michael Petusky

Okay.

right. Cheryl, feedback, Okay. on said That's some the helpful. clarity. All FDA And then, you

You sort to talked clinical about actually, trial and finish that out? going the come nonclinical get to material confidence surprised to back level your say, mean data. you're they're level is What's we're to that, a on need and your that table? going you not of confidence this going I what's to not

Cheryl Blanchard

done out so multiple statistical reiterate to continues review and clinical speculate issue. that with never company meet. around for I would with to but have set be Yes. try clinical trials, will to significance in data we FDA data We've to FDA, want they met Phase our clinical the III our a the that endpoints

that went clarifying additional progress. have They on to topic we did get forward questions, with going some we do here us to But not feedback to this file. I'm make ongoing them. some until back with We as recently. on -- any we there give actually So and dialogue updates continued additional give I look them to clarity continuing

Michael Petusky

so XXX from surgeons? or And of and that new shifting cases to last learnings is Any the worthy feedback mention? over Integrity. Any

Cheryl Blanchard

confidence great. patients a the has of The outcomes. great. is surgical are have and although rotator from of surgeons It's the has -- for Yes. appropriate applications, the this Thanks great the release having use primarily experiencing other It's The and is for remain asking. and a We're us patch arthroscopy. number patients midyear. body been -- given track now this quite technique. of in that full product. some with just also It's number And under stellar. as the market we elements it we foot number cuff feedback itself surgeons our repair distributors surgeons implant in shoulder really need uphold really to been great a and feedback on-label in implant, really manipulatable on where parts ankle applications Their on just has The fixation of strong. simple and the feedback a -- even are

So to we're release. very excited to that market get full

Michael Petusky

of Mike, And the behind you margin? margin inefficiencies cleaner QX's sort sort impacted back of I that -- gross this Is should gross jumping are the for gross the particularly one, suspect. in cadence of in manufacturing, factors improvement? then of look I given even just a completely expect last production mean much of and the sort question. Or would number starting gradual margin sort QX? be it we to should

Michael Levitz

we Good quarterly don't give a part can Mike, question. because impact lumpiness in on the basis. of quarterly of business, the which things guidance And

we then delivered things the year. what year, of guided of last and the with we had was did a this guidance margin, what consistent last year, it in to QX we year we essentially And last actually our One remainder is and that of low gross year. in higher the

to that I can to subsequent I because speak that there's it can don't move. quarters just unique anything know the

the margin go -- could spread percent. Management in from but I of profit keep second wanted that you evenly, preservation. in in dollars, -- joint the both the a be growth the half, take that gross to the that's and we for think in it gross towards Pain it's mind reasonable fair what But OA to you guidance expect revenue to weighted probably say if place a to pretty you year. terms And

things, QX from some basis, it's into moves we at point. might get that from percentage hard the So a say of this to timing but -- but

Michael Petusky

fixed? you're get Has what been that referring to, at, guess really inefficiencies whatever essentially been I I to was trying that has production rectified?

Michael Levitz

Yes.

Operator

at questions participation. are you further conference this and this time. concludes today's There your gentlemen, call. for Ladies Thank no

You disconnect. may now

Anika Therapeutics (ANIK) 8 May 242024 Q1 Earnings call transcript