Brainsway(US:BWAY)2020-03-23 17:34Financial Data and Key Metrics Changes - The company reported record quarterly revenue of $6.3 million for Q4 2019, an increase of 32% compared to Q4 2018 [21] - Full-year revenue for 2019 was $23.1 million, reflecting a 41% increase from $16.4 million in 2018 [31] - Recurring revenue for Q4 2019 was $3.5 million, up 25% year-over-year [21] - Gross profit for Q4 2019 was $4.9 million, a 32% increase from $3.7 million in the prior year [26] - The net loss for Q4 2019 was $2.3 million, compared to a net loss of $2.1 million in Q4 2018 [30] Business Line Data and Key Metrics Changes - The installed base of Deep TMS systems increased by 147 systems to a total of 530 as of December 31, 2019 [22] - The company achieved 173 OCD coils as add-on helmets since marketing clearance was obtained in August 2018 [22] Market Data and Key Metrics Changes - The company is focusing on the U.S. market, where the target market for Major Depressive Disorder (MDD) is over 17 million patients, and for Obsessive Compulsive Disorder (OCD) over 2 million patients [10] Company Strategy and Development Direction - The company aims to expand its technology for MDD and OCD while exploring other psychiatric, neurological, and addiction disorders [10] - The company plans to continue investing in sales and marketing activities globally to drive long-term growth [25] - The company is also focused on securing reimbursement for OCD treatments and expanding into international markets [41] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the company's future potential and the importance of continuing to provide Deep TMS treatment during the COVID-19 pandemic [11][12] - The company is adapting to virtual meetings with investors and customers due to travel restrictions [13][46] - Management highlighted the importance of mental health treatment and the potential of Deep TMS as a game-changing option for patients [18] Other Important Information - The company has a strong balance sheet with cash and cash equivalents of $21.9 million as of year-end 2019 [32] - The company is preparing to submit a 510(k) application to the FDA for smoking cessation treatment [34] Q&A Session Summary Question: Impact of COVID-19 on patient treatment and sales process - Management noted that most treatment centers are continuing to treat patients, viewing it as essential [44] - Sales efforts are being adapted to include more virtual meetings due to regional restrictions [46] Question: Timing and contribution of OCD helmets and reimbursement - Management indicated that reimbursement is a key factor and they are actively working to secure it [48] Question: Cash burn in 2020 relative to 2019 - Management is looking to conserve cash and delay hiring to manage expenses [49] Question: Shift towards lease model for equipment purchases - Management confirmed that the lease model is becoming more favorable among customers due to financing reasons [52] Question: Progress on smoking cessation and ADHD studies - Management expects to submit the 510(k) application for smoking cessation soon and is evaluating next steps for ADHD research [53][61]