Asensus Surgical(US:ASXC)2021-05-11 22:32Financial Data and Key Metrics Changes - For Q1 2021, the company reported revenue of $2.1 million, up from $0.6 million in Q1 2020, with system revenue contributing $1.3 million, instruments and accessories $0.4 million, and services $0.4 million [10] - Total operating expenses decreased to $14.4 million in Q1 2021 from $16.0 million in Q1 2020 [10] - Net loss attributable to common stockholders was $17.3 million or $0.08 per share in Q1 2021, compared to a net loss of $17 million or $0.59 per share in Q1 2020 [11] - Adjusted net loss was $12.2 million or $0.06 per share in Q1 2021, compared to an adjusted net loss of $12 million or $0.41 per share in Q1 2020 [11] - Cash and cash equivalents and restricted cash were approximately $166.4 million as of March 31, 2021, extending the cash runway into 2024 [12] Business Line Data and Key Metrics Changes - The company signed two new lease agreements with hospitals in Europe and had its first lease buyout in Japan during the quarter, indicating progress in its business model [8][9] - Over 500 procedures were completed globally, with significant growth in procedure volumes in both the U.S. (over 60% growth) and Asia (over 40% growth) compared to Q1 2020 [17] - The number of foundational sites increased from 11 to 13 by the end of Q1 2021, demonstrating the growing adoption of the Senhance System [19] Market Data and Key Metrics Changes - Europe faced strong COVID-19 headwinds, yet over 50% of the overall case volume was performed there during the quarter [18] - The company experienced a broad mix of procedures across general, gynecology, and colorectal surgeries, validating the applicability of the Senhance System [18] Company Strategy and Development Direction - The company aims to continue market development for the Senhance System and expand its portfolio while advancing technology [14] - The goal for 2021 is to install 10 to 12 new Senhance Systems, despite challenges posed by COVID-19 [16] - The company achieved regulatory milestones, including CE marking and FDA clearance for expanded general surgery indications, which will enhance growth opportunities [21] Management Comments on Operating Environment and Future Outlook - Management acknowledged the ongoing challenges from COVID-19 but expressed confidence in the robust pipeline and the ability to meet system installation goals [16][28] - The company expects an increase in case volume as elective procedures become more widely performed and anticipates less challenging conditions for new system installations as restrictions are lifted [28] Other Important Information - The company introduced Senhance Connect, a mobile communication system for surgeons, which enhances interoperative communication and training opportunities [22][25] - The company is focused on performance-guided surgery development, with positive feedback on the initial application of the ISU [26] Q&A Session Summary Question: Dynamics behind the lease buyout in Japan - Management explained that the hospital in Japan decided to buy out the lease after performing over 100 cases, demonstrating the economic advantages of the Senhance System [33] Question: Granularity on the 500 procedures performed - Management indicated that the procedures were spread across various specialties, including gynecology and general surgery, with a mix of simple and complex cases [35] Question: Expectations for foundational sites growth - Management expressed optimism about increasing foundational sites but acknowledged uncertainty due to ongoing COVID-19 impacts in different regions [38]