NovaBay(US:NBY)2020-11-13 01:45Financial Data and Key Metrics Changes - Net product revenue for Q3 2020 increased by 34% to $2.2 million, up from $1.6 million in the prior-year quarter [20] - Avenova revenue for the quarter increased by 14% to $1.8 million from $1.6 million a year ago, reflecting a record number of quarterly units sold [20][21] - The net loss for Q3 2020 was $3.2 million or $0.08 per share, compared to a net loss of $282,000 or $0.01 per share basic in Q3 2019 [28] Business Line Data and Key Metrics Changes - Avenova's revenue increase was attributed to strong online sales, confirming the effectiveness of the direct-to-consumer channel [11][20] - The introduction of PhaseOne contributed approximately $225,000 to net product revenue in Q3 2020, with no comparable revenue in the prior-year period [22] - Operating expenses for Q3 2020 were $3.7 million, up from $2.9 million in the prior-year period, primarily due to increased sales and marketing expenses [23] Market Data and Key Metrics Changes - Avenova's online sales are expected to be the fastest-growing sales channel, with a successful subscription feature on Amazon [12] - Sales in major metropolitan markets like New York and San Francisco saw a significant recovery in Q3 as these areas reopened [43] Company Strategy and Development Direction - The company is launching CelleRx Clinical Reset, targeting the beauty market and leveraging its hypochlorous acid technology [4][5] - Plans to broaden the distribution channel for Clinical Reset and seek additional products in skincare and beauty markets [32] - Focus on enhancing online sales for Avenova, which holds the greatest growth opportunity [33] Management's Comments on Operating Environment and Future Outlook - Management acknowledged the uncertainty surrounding the COVID-19 pandemic and its potential impact on operations and financial results [2] - The company has regained compliance with NYSE American listing standards and believes it has sufficient funds to support operations through at least the end of 2021 [14][29] Other Important Information - The company is awaiting FDA review for Emergency Use Authorization for a COVID-19 antibody test, which has been a dynamic process [15] - Avenova is promoted as an antimicrobial spray for bacterial dry eye, with a focus on its unique formulation and manufacturing in the USA [17][18] Q&A Session Summary Question: Current marketing strategies for Avenova post-COVID claims removal - Management reverted to pre-pandemic messaging and noted no significant impact on sales after removing COVID-related claims [39] Question: Bulk orders in Q3 and expectations for Q4 - Management mentioned bulk orders were harder to chase down but indicated new distribution channels for Avenova and CelleRx are being pursued [41] Question: Trends in optometrist office reopenings - Sales trends closely followed broader market reopenings, with major metropolitan areas recovering in Q3 [43] Question: Marketing investments for CelleRx launch - Management indicated that while an aggressive marketing campaign is planned, it will be manageable within current resources [48] Question: Plans for launching CelleRx on e-commerce sites - Initially, CelleRx will be available only on cellerx.com, with potential partnerships for exclusive online sales [49]