Apyx Medical(US:APYX)2024-08-11 10:39Financial Data and Key Metrics Changes - Total revenue for Q2 2024 decreased 10% year-over-year to $12.1 million [6] - Gross profit decreased $1.8 million or 19% to $7.5 million, with a gross profit margin of 61.7% compared to 68.4% in the prior period [16] - Net loss attributable to stockholders was $6.6 million or $0.19 per share, compared to $1 million or $0.03 per share in the prior year period [18] - Adjusted EBITDA loss increased $2.7 million or 166% to $4.3 million compared to $1.6 million in Q2 2023 [19] Business Line Data and Key Metrics Changes - Sales of Advanced Energy products decreased 17% year-over-year to $9.8 million, while OEM products increased 29% year-over-year to $2.4 million [6] - Handpiece sales increased by more than 20% year-over-year, helping to mitigate the impact of lower generator sales [7][15] Market Data and Key Metrics Changes - The cosmetic surgery market remains challenging, with prospective customers delaying purchase decisions due to macroeconomic concerns [6][7] - International sales comprised a higher percentage of total sales compared to the prior period, impacting gross margin [16] Company Strategy and Development Direction - The company is focused on raising awareness of Renuvion technology and educating surgeons and patients about its benefits [8][26] - A strategic review of the business is being conducted to enhance growth and unlock shareholder value [26] - The company aims to capitalize on long-term trends such as the increasing acceptance of aesthetic treatments and the rise of body contouring procedures [26][27] Management's Comments on Operating Environment and Future Outlook - Management expects the challenging capital equipment environment to continue impacting sales of generator systems throughout the year [24] - There is an expectation of continued growth in handpiece sales, with low double-digit growth anticipated for the second half of 2024 [24] - The company is managing expenses closely to optimize cash efficiency while preparing for a return to strong growth [26] Other Important Information - The company has launched the "Renewing Lives" campaign, a nationwide giveback program to fund Renuvion procedures for those who cannot afford them [14] Q&A Session Summary Question: What are the primary drivers for handpiece utilization? - Management noted that some growth is attributed to GLP-1 patients needing treatments for loose skin, contributing to strong handpiece sales [30] Question: Are there opportunities to add new geographies this year? - Management confirmed that registrations for South Korea and China are in place, and updates will be provided once news is available [32] Question: How did U.S. versus international handpiece sales perform? - Both U.S. and international handpiece sales were up more than 20% year-over-year, indicating strong performance in both markets [35] Question: What is the outlook for capital equipment sales? - Management indicated that the capital equipment environment remains challenged, and guidance reflects this ongoing difficulty [35] Question: How many system sales were to new customers? - The majority of system sales in the quarter were to new customers adopting the technology [40] Question: Is there an acceleration in utilization with the micro handpiece? - The micro handpiece is contributing to growth, but the primary driver remains the body contouring handpieces [42]