AtriCure(US:ATRC)2019-03-02 05:10Financial Data and Key Metrics Changes - Total revenue for Q4 2018 was approximately $53 million, reflecting a growth of 15% compared to Q4 2017 [7] - US revenue was $43 million, representing a growth of 19% year-over-year [8] - Gross margin for Q4 2018 was 73%, up from 71% in Q4 2017 [22] - For the full year 2018, worldwide revenue was $201.6 million, an increase of 15.4% over 2017 [27] - Loss per share for 2018 was $0.62 compared to $0.83 for 2017 [28] Business Line Data and Key Metrics Changes - US sales of appendage management products grew 41.9% to $52.9 million, driven by strong performance of both open and minimally invasive AtriClip products [28] - Revenue from open chest ablation procedures in the US increased by approximately $2 million to $18.6 million, representing growth of 11.9% [20] - US sales of ablation products used in minimally invasive procedures were up 13% to $9.4 million [21] Market Data and Key Metrics Changes - International revenue totaled $9.8 million, down 0.9% on a GAAP basis but up 1.4% on a constant currency basis compared to Q4 2017 [22] - European growth was strong in 2018, balancing weaker results for Asia due to the transition of the China distributor [28] - In Europe, there was an 18% growth in Q4, driven by solid sales of the EPi-Sense device [17] Company Strategy and Development Direction - The company aims for full-year 2019 revenue in the range of $220 million to $228 million, indicating a growth of approximately 9% to 13% year-over-year [30] - Focus areas include education, clinical science, and innovation as critical pillars for growth [32] - The company is investing in clinical trials such as ICE-AFIB and DEEP AF IDE to enhance its product offerings and clinical evidence [10][13] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the overall business outlook, anticipating strong growth in both the US and international markets [35] - The absence of orders from China in Q4 was noted, but management expects a return to normal order patterns in 2019 [38] - Management highlighted the importance of training and education, having trained over 400 healthcare professionals in 2018 [18] Other Important Information - The company raised over $80 million in 2018, strengthening its balance sheet [6] - The CryoICE CryoSPHERE probe was launched in the US, aimed at improving pain management strategies [14] - The company ended 2018 with approximately $124 million in cash and equivalents [29] Q&A Session Summary Question: Can you talk about the guidance range of 9% to 13%? - Management feels confident about the overall business and anticipates strong growth in the US and Europe, with the absence of China orders being a minor impact [35][36] Question: What is the impact of the absence of China orders? - The absence did impact international growth rates, but it was not material to overall numbers [37] Question: What is the focus for the MIS franchise in 2019? - The focus is on preparing for the CONVERGE data release and enhancing clinical education programs [39] Question: How do you see the growth rates for OUS and US? - Both OUS and US growth rates are expected to be consistent within the guidance range [44] Question: What is the role of the DEEP procedure? - The DEEP procedure offers an alternative for physicians, and the company is investing in clinical trials to advance its labeling [68]