Asensus Surgical(US:ASXC)2022-08-09 00:48Financial Data and Key Metrics Changes - For Q2 2022, the company reported revenue of $1 million, a decrease from $1.1 million in Q2 2021, with revenue breakdown including $0.3 million in lease revenue, $0.3 million in instruments and accessories, and $0.4 million in services [12] - Total operating expenses for Q2 2022 were $18.2 million, up from $14.8 million in Q2 2021 [13] - Net loss attributable to common stockholders was $19.6 million or $0.08 per share in Q2 2022, compared to a net loss of $13.2 million or $0.06 per share in Q2 2021 [13] - Adjusted net loss attributable to common stockholders was $17.3 million or $0.07 per share in Q2 2022, compared to an adjusted net loss of $12.7 million or $0.05 per share in Q2 2021 [13] - The company had cash and investments of approximately $103.8 million and working capital of $98.9 million as of June 30, 2022 [14] Business Line Data and Key Metrics Changes - Senhance case volumes increased by 34% year-over-year, primarily driven by growth in European sites [9] - The company installed one system year-to-date and has two additional system orders expected to be installed soon [9][20] - Procedure volumes were strong, with over 670 procedures performed in Q2 2022, totaling over 1,300 procedures for the first half of the year [22] Market Data and Key Metrics Changes - The company faced macro headwinds including hospital staffing shortages and inflation, impacting procedure volumes [8] - Despite challenges, Europe showed strong procedure volume trends, with general surgery having the most procedures across all geographies [22] - The company is refocusing commercial efforts on Western Europe due to the ongoing conflict in Eastern Europe [20] Company Strategy and Development Direction - The company aims to continue market development of the Senhance System and advance its product portfolio [15] - Plans include the commercial launch of 5-millimeter articulating instruments and submission of a 510(k) application for pediatric clearance in the U.S. [23][24] - The company is investing in cloud and data management capabilities to compile surgical data and enhance the Intelligent Surgical Unit (ISU) features [25][26] Management's Comments on Operating Environment and Future Outlook - Management acknowledged the impact of macroeconomic factors on performance but expressed confidence in the long-term adoption of Senhance [21] - The company expects to install 8 to 10 new systems globally for the year, with a healthy pipeline in Europe, Japan, and the U.S. [21][30] - Management highlighted the importance of clinical publications and real-world data to support the Senhance platform's benefits [16][17] Other Important Information - The company attended several conferences to showcase the clinical performance of Senhance and its vision for Performance-Guided Surgery [10][11] - The TRUST registry, the largest robotic-assisted laparoscopic registry, continues to grow, providing valuable clinical data [17] Q&A Session Summary Question: Confidence in installing 8 to 10 devices for the year - Management confirmed one new system installed in Germany and two more expected soon, with Europe leading future installations [30] Question: Connection between procedures and revenue - Revenue connectivity depends on the type of arrangement, with a mix of leasing and consumables contributing to revenue [32] Question: Monitoring ROI of articulating instruments - Management noted strong market demand for articulated instruments and anticipated increased adoption and procedure growth [34] Question: Sales process duration and buyer attraction - Sales timelines vary, with some taking over 12 months; key attractions include the laparoscopic tool's familiarity, haptic feedback, and economic value [38] Question: Driving performance-guided surgery - The company is evolving technology and organizational structure to optimize procedure-specific solutions [40]