Acutus Medical(US:AFIB)2022-11-13 13:50Financial Data and Key Metrics Changes - For Q3 2022, net revenue was $3.6 million, down from $4.6 million in Q3 2021, primarily due to a $1.1 million decline in capital equipment sales [17][24] - Year-to-date procedure volumes increased by 21% year-over-year, with console utilization up 17% and revenue per procedure up 16% on a constant currency basis [8][12] - Non-GAAP operating expenses were approximately $15.2 million, down 30% year-over-year, marking the lowest level since the IPO [23] Business Line Data and Key Metrics Changes - U.S. sales were $1.9 million, a 12% decline year-over-year, driven by lower capital equipment sales, while disposable revenue remained flat [18] - Outside the U.S., sales were $1.7 million, down from $2.4 million in the prior year, primarily due to decreased capital sales [20] - Disposable product revenue increased about 1% year-over-year to $2.9 million, with procedure volumes of 441 reflecting a 17% increase [20] Market Data and Key Metrics Changes - The installed base globally was 74 systems, down from 75 in the previous quarter but up from 71 in the year-ago quarter [21] - Supply chain disruptions impacted U.S. sales by approximately $100,000 in Q3 and are expected to continue affecting Q4 [18][31] - The company expects full-year 2022 revenue to be in the range of $15.5 million to $16 million, including a $2.5 million decline in capital equipment revenue [26] Company Strategy and Development Direction - The company is focusing on driving utilization and operational excellence, with a goal to exit 2023 with a higher installed base and increased revenue per procedure [6][9] - New product launches, including AcQMap 8.5 and AcQBlate, are expected to enhance procedural efficiency and support growth objectives [10][11] - The transition of the left-heart access portfolio to Medtronic is progressing, with a $20 million earn-out payment expected by year-end [14] Management's Comments on Operating Environment and Future Outlook - Management acknowledged external challenges such as foreign exchange headwinds and supply chain disruptions but emphasized strong business fundamentals [16] - The company anticipates progressive improvements in 2023 and stronger performance in 2024, supported by operational improvement initiatives [16][27] - Management expressed confidence in the team's ability to execute the strategy and improve financial performance despite current challenges [15] Other Important Information - Non-GAAP gross margin was negative 109%, compared to negative 77% in Q3 2021, with efforts underway to improve operational performance and gross margins [22] - Cash and cash equivalents at the end of Q3 2022 were $70.5 million, with cash burn down 23% year-over-year [24] Q&A Session Summary Question: Can you elaborate on the supply chain constraints? - The AcQGuide MAX introducer sheath is impacted, with a shift from 2:1 to 1:1 usage ratio due to supply issues, expected resolution by early 2023 [30][31] Question: What is the status of the installed base and utilization increases? - The console relocation effort is mostly complete, with a focus on increasing utilization through physician champions [34][35] Question: How will the rollout of AcQBlate look next year? - The rollout will focus on existing users first, with expected significant uptake and revenue increases [39] Question: What are the expectations for gross margins going into 2023? - Improvements in overhead and manufacturing processes are expected to positively impact gross margins, with a target of $2 million in steady revenue to achieve positive gross margins [69]