Xtant Medical (US:XTNT)2021-11-12 15:57Financial Data and Key Metrics Changes - Total revenue for Q3 2021 was $13.8 million, a decrease from $14 million in Q3 2020, attributed to lower sales from the distributor sales channel due to COVID-19 impacts [25] - Gross margin for Q3 2021 was 52.2%, down from 66% in the same period of 2020, influenced by a shift in sales channel mix and lower absorption of labor and overhead expenses [27][28] - Net loss for Q3 2021 totaled $1.8 million or $0.02 per share, compared to a net loss of $1.4 million or $0.10 per share in Q3 2020 [34] Business Line Data and Key Metrics Changes - Significant increase in OEM revenue during Q3 2021, indicating early success in expanding into other vertical markets [26] - OEM channel sales, while carrying lower gross margins, provided slightly better operating margins compared to traditional independent agent channel sales [14][19] Market Data and Key Metrics Changes - The COVID Delta variant negatively impacted elective spinal procedures in core markets, particularly in August and September [11][12] - The company experienced softness in independent agent channel sales due to the pandemic, while OEM channel sales began to increase [13][19] Company Strategy and Development Direction - The company is focused on key growth initiatives including new product introductions, distribution network expansion, and penetration into adjacent markets [9][13] - A regular cadence of new product releases has been established, with the launch of OsteoFactor in September 2021, aimed at penetrating the growth factor market [15][16] - The company is pursuing strategic acquisitions to enhance its product portfolio and expand into adjacent markets [18] Management's Comments on Operating Environment and Future Outlook - Management acknowledges the ongoing pandemic's adverse effects but believes the headwinds are temporary and that the company is well-positioned for future growth [36][38] - The company expects gross margins to improve as demand for elective procedures returns to pre-COVID levels, driven by increased independent agent channel sales [22][23] Other Important Information - The company reduced finished goods inventory by over $2 million during Q3 2021, which temporarily affected overhead absorption rates [21][29] - As of September 30, 2021, the company had $18.2 million in cash and cash equivalents, $6.3 million in net accounts receivable, and $19.7 million in inventory [34] Q&A Session Summary - No specific questions or answers were provided in the content regarding the Q&A session.