Asensus Surgical(US:ASXC)2021-03-12 03:44Financial Data and Key Metrics Changes - For Q4 2020, the company reported revenue of $1.1 million, an increase from $0.7 million in Q4 2019, with revenue components including $0.3 million from systems leasing, $0.3 million from instruments and accessories, and $0.5 million from services [16] - Total operating expenses for Q4 2020 were $14.2 million, down from $18.1 million in Q4 2019, excluding the gain from the sale of AutoLap assets [16] - The net loss attributable to common stockholders was $13.8 million or $0.13 per share in Q4 2020, compared to a net loss of $13.7 million or $0.69 per share in Q4 2019 [17] - Adjusted net loss attributable to common stockholders was $9.7 million or $0.09 per share in Q4 2020, compared to an adjusted net loss of $16.4 million or $0.83 per share in Q4 2019 [17][18] - As of December 31, 2020, the company had cash and cash equivalents of approximately $17.5 million, with working capital of $23.7 million [19] Business Line Data and Key Metrics Changes - The company initiated 10 new clinical programs by the end of 2020, with three in the U.S., four in Europe, and three in Asia [8] - Over 1,450 procedures were performed using the Senhance system in 2020, a decrease of approximately 10% compared to 2019 [11] - The number of foundational sites increased to 11 by the end of 2020, up from 4 at the start of the year [11] Market Data and Key Metrics Changes - Procedure volumes in the fourth quarter of 2020 approached 2019 levels, growing sequentially over the third quarter by over 20% [10] - The U.S. and Asia showed year-over-year growth in procedure volumes, while Europe continued to be impacted by COVID-related shutdowns [10] Company Strategy and Development Direction - The company rebranded as Asensus Surgical to reflect its evolution from a robotics company to a digital surgery company, focusing on performance-guided surgery [20] - Key focus areas for 2021 include market development for the Senhance system and expanding technological capabilities [23] - The company aims to install another 10 to 12 new Senhance systems in 2021, with a focus on increasing the number of procedures performed globally [25] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the recovery of procedure volumes as elective surgeries resume and COVID restrictions ease [29] - The company anticipates significant growth in procedure volumes compared to 2020, despite ongoing COVID headwinds [27] Other Important Information - The company received regulatory approval in the Russian Federation, viewing it as an opportunity to grow Senhance installations in an underserved market [14] - The company achieved CE Mark approval for the Intelligent Surgical Unit (ISU) and expanded indications for general surgery, which is expected to enhance market opportunities [14][28] Q&A Session Summary Question: How has the operational lease model impacted sales cycles? - Management noted that leveraging the operating lease model has reduced the time from initial conversation to signed agreement and installation, as hospitals avoid lengthy capital approval processes [33] Question: What is the general per procedure revenue? - Management indicated that they do not track per procedure revenues due to variability across geographies and leasing models [35] Question: How significant is the Russian market and the timeline for development? - Management highlighted the low robotic penetration in Russia and the potential for lower procedure costs with Senhance, indicating good opportunities for growth [39] Question: Can you clarify the total addressable market (TAM) for general surgery? - Management explained that the TAM for general surgery has expanded to 2.7 million procedures, including previously unaddressed areas like bariatric and upper GI procedures [42] Question: What is the expectation for the pediatric market? - Management acknowledged the pediatric market is relatively small but underserved, with unique technology adoption opportunities [50]