AtriCure(US:ATRC)2021-04-27 16:00Financial Performance - Revenue for Q1 2021 was $59,275, an increase of 11.4% compared to $53,225 in Q1 2020, with U.S. revenue increasing by 15.7%[103] - Gross profit for Q1 2021 was $44,540, representing a gross margin of 75.1%, up from 73.1% in Q1 2020[103] - The net loss for Q1 2021 was $16,917, compared to a net loss of $16,408 in Q1 2020[103] - International revenue decreased by 8.1% due to local COVID restrictions, impacting open and minimally invasive ablation product sales[103] Expenses - Research and development expenses decreased by 3.2% to $11,217, primarily due to reduced clinical trial activities[105] - Selling, general and administrative expenses increased by 15.1% to $49,208, driven by higher personnel costs and share-based compensation[105] Cash Flow and Liquidity - Cash, cash equivalents, and investments totaled $236,332 as of March 31, 2021, with outstanding debt of $60,000[107] - The company experienced a net cash outflow of $9,316 from operating activities in Q1 2021, reflecting the net loss and changes in working capital[108] - Generated $63,587 of net cash from investing activities during Q1 2021, reflecting $64,913 from sales and maturities of available-for-sale securities[109] - Used $10,707 of net cash in financing activities during Q1 2021, primarily for share repurchases totaling $15,097[109] - The company expects current cash and cash equivalents to meet anticipated cash needs for at least the next twelve months[114] - The company is closely monitoring liquidity and capital resources due to potential impacts from the COVID-19 pandemic[112] Debt and Financing - Loan and Security Agreement with Silicon Valley Bank includes a $60,000 term loan and a $20,000 revolving line of credit, maturing on August 1, 2024[110] - As of March 31, 2021, the company had no borrowings under the revolving credit facility and $8,750 of borrowing availability[110] - The term loan accrues interest at the greater of the Prime Rate or 5.00%, plus 0.75%[110] - The company may seek to sell additional equity or debt securities if cash sources are insufficient, which could result in dilution to stockholders[115] - The company has a shelf registration statement on file with the SEC for future offerings of various securities[113] Product Development - The ENCOMPASS clamp is progressing towards 510(k) clearance, expected to enhance penetration in cardiac surgery procedures[99] - The company is awaiting FDA feedback on the PMA approval for the EPi-Sense system, which targets a significant patient population with long-standing persistent atrial fibrillation[100] Acquisition - The SentreHEART acquisition includes contingent consideration to be paid upon PMA approval before December 2023[114]