Asensus Surgical(US:ASXC)2020-11-06 00:33Financial Data and Key Metrics Changes - For Q3 2020, the company reported revenue of $800,000, a decrease from $2 million in Q3 2019, representing a 60% decline year-over-year [9] - Total operating expenses for Q3 2020 were $14.6 million, significantly reduced from $96.1 million in Q3 2019 [9] - Net loss attributable to common stockholders was $15.1 million or $0.15 per share, compared to a net loss of $97.8 million or $5.55 per share in Q3 2019 [10] - Adjusted net loss for Q3 2020 was $11.9 million or $0.12 per share, down from an adjusted net loss of $20.6 million or $1.17 per share in Q3 2019 [10] Business Line Data and Key Metrics Changes - Revenue breakdown for Q3 2020 included $200,000 from system leasing, $200,000 from instruments and accessories, and $400,000 from services [9] - The company entered into 9 leasing agreements and initiated 8 clinical programs by the end of Q3 2020, aiming for 12 to 15 installations for the year [14] Market Data and Key Metrics Changes - Procedure volumes in Asia grew 37% year-over-year during Q3 2020, while the U.S. saw a decline of 11% and EMEA experienced a 28% decline year-over-year [42] - EMEA region showed a significant rebound with a nearly 200% sequential increase in procedure volumes from Q2 to Q3 2020 [17][42] Company Strategy and Development Direction - The company focuses on market development, clinical validation, and portfolio expansion, with efforts to increase visibility and demonstrate the clinical and economic value of the Senhance system [13][14] - A new training facility was added in Japan to support demand for Senhance, with plans for an additional training center in Europe by the end of 2020 [15][16] - The company is progressing towards offering additional features with the intelligent surgical unit (ISU), which adds augmented intelligence capabilities to robotic-assisted surgery [22][24] Management Comments on Operating Environment and Future Outlook - Management expressed optimism about the ongoing recovery from COVID-19 impacts, noting a rebound in procedure volumes in the latter half of Q2 and throughout Q3 2020 [17][28] - The company anticipates that existing cash and cash equivalents will be sufficient to meet anticipated cash needs into Q2 2021 [12] Other Important Information - The company had cash and cash equivalents of approximately $21.1 million and working capital of $25.9 million as of September 30, 2020 [11] - The company plans to move to a new campus in Research Triangle Park, North Carolina, which is expected to benefit financially from a smaller footprint [12] Q&A Session Summary Question: Publication on cost comparison - Management confirmed a U.S. publication on cost comparison between laparoscopy, Senhance, and other robotic platforms is expected by the end of the year [29][30] Question: Auto ship capabilities and ISU features - The ISU is integrated into every case performed by surgeons, focusing on camera control and collaboration within the OR [34] Question: General surgery filing and clinical data - Clinical data was included in the general surgery filing, leveraging existing procedures such as hernia and gallbladder surgeries [45] Question: Additional general surgery procedures - Management indicated it is too early to break down the 800,000 additional general surgery procedures into specific categories [47] Question: Competition and market positioning - Management believes that digital laparoscopy with Senhance is uniquely positioned in the market, emphasizing the importance of competition in driving innovation [51][53]