Apyx Medical(US:APYX)2021-03-31 15:40Financial Data and Key Metrics Changes - Total revenue for Q4 2020 was $11.5 million, a 37% increase year-over-year, exceeding expectations [7] - Gross profit for Q4 2020 increased by $2.1 million or 38.4% year-over-year to $7.7 million, with a gross profit margin of 67.2% compared to 66.4% last year [21][22] - Net loss attributable to stockholders for Q4 2020 was $1.5 million or $0.04 per share, compared to $5.4 million or $0.16 per share for Q4 2019 [24] Business Segment Data and Key Metrics Changes - Advanced Energy sales increased 44% year-over-year to $9.9 million, driven by a 78% increase in handpiece sales and a 25% increase in generator sales [8][9] - OEM sales increased by 4% year-over-year to $1.6 million [8] Market Data and Key Metrics Changes - U.S. sales for Q4 2020 increased 18% year-over-year to $6.6 million, while international sales increased 74% year-over-year to $4.9 million [8] - International sales growth was significantly driven by Brazil, which contributed to approximately half of the international sales increase [40] Company Strategy and Development Direction - The company is pursuing four strategic initiatives to enhance long-term growth in the cosmetic surgery market, including clinical studies for new indications of Renuvion technology [12][13] - The company aims to expand its global commercial footprint by obtaining regulatory clearances in new countries [15] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the Advanced Energy business, expecting growth of 45% to 55% year-over-year in 2021, despite ongoing challenges from COVID-19 [31] - The company anticipates that international sales will continue to be a significant driver of growth, particularly in Brazil, which is the second-largest cosmetic market globally [40][55] Other Important Information - The company expects total revenue in 2021 to be in the range of $36.7 million to $38.7 million, representing growth of 32% to 40% year-over-year [25] - Operating expenses for Q4 2020 decreased by 15.4% year-over-year to $9.8 million, reflecting cost control measures implemented in response to COVID-19 [23] Q&A Session Summary Question: Can you discuss the benefits seen in Q4 and the guidance for Advanced Energy? - Management noted that Q1 typically sees a 20% to 30% decline from Q4 due to seasonality, which is reflected in the guidance [36][38] Question: What factors are driving the strong international sales? - Management highlighted strong demand from Brazil and the Middle East, with Brazil being a key market due to its size in cosmetic procedures [40][55] Question: What will it take to reinvigorate generator sales? - Management indicated that improvements in generator sales are expected as vaccination efforts progress and trade shows resume, but the timing remains uncertain [44] Question: How will operating expenses ramp up in 2021? - Management expects a return of approximately $4.3 million in COVID-related savings to normalized operating expenses, with an overall increase of about 22% year-over-year [29][57] Question: What is the status of the FDA initiatives? - Management confirmed that enrollment for the skin laxity study is ongoing, with expectations to complete by the end of Q3 2021, and plans to submit for 510(k) clearance by the end of May 2021 [60][61]