Avinger(US:AVGR)2021-05-07 02:28Financial Data and Key Metrics Changes - Total revenue for Q1 2021 was $2.6 million, a 13% increase from the same quarter last year, marking the highest sales in the past four years [7][24] - Gross margin improved to 35%, up from 22% in Q1 2020, indicating enhanced operational efficiency [24] - Net loss attributable to common shareholders decreased to $5.1 million from $5.9 million year-over-year [25] Business Line Data and Key Metrics Changes - Catheter or disposable sales reached an almost four-year high, driven by strong demand for Pantheris SV and Tigereye [24] - Total image-guided CTO revenue increased by over 60% year-over-year, converting a previously declining sales franchise into a growth driver [10][34] - Pantheris SV catheter was launched into more than 100 accounts, showing significant market gains [12] Market Data and Key Metrics Changes - The rollout of COVID-19 vaccines and easing of restrictions have allowed greater access for sales and clinical support teams at customer sites [6] - The company opened eight new accounts in Q1 2021, adding to nine accounts launched in Q4 2020 [8] Company Strategy and Development Direction - Avinger is strategically expanding its sales force by approximately 20% in 2021 to capture more sites and grow market share [21][37] - The company plans to launch the Lightbox 3 next-generation imaging console in the second half of 2021, which is expected to enhance market penetration and operational efficiency [15][44] - Avinger is exploring the Coronary Artery Disease market, aiming to develop a new image-guided CTO crossing device for coronary arteries [17][19] Management's Comments on Operating Environment and Future Outlook - Management believes 2021 will be an inflection year with multiple growth drivers aligning, including increased market penetration of Pantheris SV and the rollout of Tigereye [8][22] - The company is optimistic about the recovery from COVID-19 impacts, noting strong engagement with sales reps and physicians [40][42] Other Important Information - Cash and cash equivalents totaled $30.4 million at March 31, 2021, up from $22.2 million at year-end, providing a runway for strategic initiatives [26] - The company amended its loan agreement to extend the interest-only period and maturity date, improving financial flexibility [27] Q&A Session Summary Question: Discussion on the Tigereye commercial launch and customer appeal - Management reported positive feedback on Tigereye's efficiency and enhanced imaging capabilities, with a goal of launching in 40 accounts by the end of the quarter [31][33] Question: Details on the expansion of the sales team - The sales organization is expected to grow by about 20%, adding five to six new members, with a focus on developing new accounts and expanding geographic reach [36][38] Question: Market outlook as the company recovers from pandemic lows - Management noted a strong recovery in business, with widespread vaccination and easing restrictions contributing to positive growth [40][42] Question: Progress on the Lightbox development - The company anticipates filing for U.S. pre-marketing clearance for Lightbox 3 in mid-2021, with initial commercial launch expected by the end of the year [44][45]