Financial Data and Key Metrics Changes - Revenue for Q4 2018 was $2.0 million, compared to $1.9 million in Q4 2017, with product sales of $1.2 million and service revenue of $0.8 million [27] - Gross profit margin for Q4 2018 improved to 40% from 14% in Q4 2017 [28] - GAAP net loss for Q4 2018 was $14.9 million or $1.18 per share, compared to a loss of $3.1 million or $0.40 per share in Q4 2017 [30] - For the full year 2018, revenue was $6.3 million, a 7% increase from $5.9 million in 2017 [31] - GAAP net loss for 2018 was $30.8 million or $3.34 per share, compared to a loss of $17.8 million or $2.35 per share in 2017 [33] Business Line Data and Key Metrics Changes - Revenue from the vascular segment in Q4 2018 was $0.6 million, up from $0.2 million in the prior year [28] - Revenue from the dermatology segment was $1.4 million in Q4 2018, down from $1.7 million in the prior year [28] - For the full year 2018, vascular segment revenue was $1.6 million, an increase of $0.3 million from 2017, while dermatology segment revenue was $4.7 million, down from $5.6 million in 2017 [31] Market Data and Key Metrics Changes - The total addressable market for Peripheral Artery Disease (PAD) in the U.S. is estimated to be over $1 billion, with only 20% to 30% of patients actively treated [11] - Approximately 180,000 amputations are performed annually in the U.S. due to PAD [12] Company Strategy and Development Direction - The company is transitioning to a new integrated commercial strategy aimed at building long-term relationships with customers [16] - The new strategy focuses on establishing a commercial ecosystem that integrates sales, clinical specialists, marketing, and technical support [24] - The company is pursuing FDA clearance for atherectomy indications and plans to expand product offerings in the endovascular space [43][44] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the DABRA system's potential and the positive impact of the new commercial strategy beginning in Q2 2019 [22][36] - The company aims to build a body of compelling study evidence to support physician adoption of the DABRA system [38] - Management noted that manufacturing issues have been resolved and full production has resumed [20][21] Other Important Information - Cash and cash equivalents as of December 31, 2018, were $64.3 million, following an IPO that generated net proceeds of $67.3 million [34] - The company does not plan to provide quarterly revenue guidance but expects Q1 2019 revenue to be between $1.0 million and $1.4 million [35][36] Q&A Session Summary Question: Factors leading to light numbers in the vascular segment - Management acknowledged manufacturing issues but confirmed that they have been resolved and full production has resumed [50] Question: Details on the strategy change - The new strategy focuses on establishing longer-term relationships rather than initial evaluation sales, with a strong emphasis on customer adoption [52][54] Question: Revenue expectations for the year - Management refrained from providing specific revenue guidance but indicated that qualified reps could generate $1 million annually with four accounts [61] Question: Hiring pace for sales reps - The company plans to add sales reps at a measured pace, focusing on quality over quantity [68] Question: Manufacturing issues in Q4 2018 - The issues were related to a specific piece of equipment during the scale-up process, which has now been upgraded [76]
Catheter Precision(VTAK) - 2018 Q4 - Earnings Call Transcript