Profound(US:PROF)2021-05-13 03:10Financial Data and Key Metrics Changes - For Q1 2021, the company recorded revenue of $711,000, down 41% from $1.2 million in Q1 2020, marking the first revenue decline since Q1 2018 [11][15] - Total operating expenses increased by 47% to $6.8 million compared to approximately $2.1 million in Q1 2020 [13] - The company reported a net loss of $7.5 million or $0.37 per common share, compared to a net loss of $2.6 million or $0.21 per common share for the same period in 2020 [15] Business Line Data and Key Metrics Changes - The company is commercializing two main technologies: TULSA-PRO for prostate treatment and Sonalleve for uterine fibroids and palliative pain treatment [5][6] - TULSA-PRO sites have exceeded initial procedure targets, achieving an average run rate of 60 procedures per year, which is 50% higher than the initial estimate [20] Market Data and Key Metrics Changes - The U.S. market entry strategy for TULSA-PRO targets early adopters, independent imaging centers, and teaching hospitals, with agreements signed with top-tier hospitals across major markets [19][22] - The first quarter saw the best performance in terms of new TULSA-PRO system agreements signed, with expectations to go live in summer 2021 [23][26] Company Strategy and Development Direction - The company aims to regain momentum despite COVID-19 impacts, with a focus on increasing the installed base and procedure volumes [33][34] - The strategy includes pursuing a CPT-1 application to enhance reimbursement prospects, with plans to file by the end of 2022 [30][62] Management's Comments on Operating Environment and Future Outlook - Management remains cautious but optimistic about recovering Q1 revenue shortfalls throughout the remainder of 2021, citing positive trends in March and April [12][33] - The company is confident in the long-term adoption of TULSA-PRO, supported by agreements with leading hospitals and ongoing clinical studies [24][34] Other Important Information - The company has transitioned its presentation currency from Canadian dollars to U.S. dollars to streamline reporting [10] - Cash reserves as of March 31, 2021, were reported at $78.5 million [15] Q&A Session Summary Question: When do you expect the newly contracted sites to be operational? - Most sites are expected to be operational by the end of June or July, with some in Q4 [38] Question: How many systems will be installed in the initial 10 centers across Florida, Texas, and Pennsylvania? - Majority of systems will be in Florida, with at least half in that state and the rest in Texas and Pennsylvania [40] Question: What is the mix of procedures being performed? - Approximately 20% of patients treated are in the BPH category, with a variety of cancer stages being treated [41][42] Question: Can you provide visibility on the number of installations expected in Q2 and Q3? - The company expects to install at least one to two systems per month, aiming for a total of 75 installations by the end of the year [50] Question: What is the status of the C-Code and CPT-1 application? - The C-Code strategy is working well, with hospitals getting paid for procedures, and the CPT-1 application is expected to be filed in early 2022 [61][62]