Apyx Medical(APYX)2025-05-08 13:00Financial Data and Key Metrics Changes - Total revenue for Q1 2025 was $9.4 million, a decrease of 8% compared to $10.2 million in Q1 2024 [5][16] - Gross profit for Q1 2025 decreased to $5.7 million from $5.9 million in the prior year, with a gross profit margin of 60.1%, up from 58.1% [17][18] - Net loss attributable to shareholders was $4.2 million or $0.10 per share, compared to $7.6 million or $0.22 per share in the prior year [19] Business Line Data and Key Metrics Changes - Advanced Energy segment revenue increased by 6% to $7.9 million, driven by stronger sales of single-use handpieces in the U.S. [6][16] - OEM segment sales decreased by 44.7% to approximately $1.2 million, attributed to lower sales volume to existing customers [17] Market Data and Key Metrics Changes - Domestic revenue decreased by 3.4% year-over-year to $6.7 million, while international revenue decreased by 17.7% to $2.7 million [17] - The company noted a stabilization in demand for capital equipment in the U.S., with year-over-year increases for two consecutive quarters [6] Company Strategy and Development Direction - The company is focusing on the Renuvion offering as a key product for addressing loose and lax skin, particularly for patients experiencing rapid weight loss due to GLP-1 drugs [10][11] - AON body contouring platform is expected to differentiate the company in the market, with a planned launch in the second half of 2025 pending FDA clearance [14][15] Management's Comments on Operating Environment and Future Outlook - Management acknowledged persistent macroeconomic headwinds but expressed optimism about the growth potential from the GLP-1 market [7][9] - The company expects to return to more normalized cash burn for the remainder of 2025, projecting cash flow into 2027 [20] Other Important Information - The company implemented significant cost-cutting measures, resulting in a decrease in operating expenses to $8.7 million from $12.6 million in the prior year [19] - Renuvion won the 2025 New Beauty Award for Best Minimally Invasive Skin Tightener, highlighting its market recognition [12] Q&A Session Summary Question: Progress on AON platform and customer enrollment - Management indicated they are not commenting on the AON pipeline yet but noted excitement in the marketplace regarding upgrades to the APYX-one console [24][25] Question: Demand for APYX One console upgrades - Management confirmed they are seeing increased demand for the APYX One console as customers prepare for AON [26][27] Question: Tariff impacts and supply chain - Management stated they have manufacturing flexibility between the U.S. and Bulgaria to mitigate potential tariff impacts [30][31] Question: Margin impact from tariffs - Management expects gross margins to remain around 60% for the year, indicating minimal impact from current tariff considerations [34] Question: Investments to support AON launch - Management emphasized that while controlling expenses is important, investments to support the AON launch will not be compromised [35]