Avinger(AVGR)2020-08-01 01:23Financial Data and Key Metrics Changes - Total revenue for Q2 2020 was 2.3 million in Q2 2019 and a decline from 4 million in Q2 2020 from 5.4 million in Q2 2019, reflecting successful cost reduction efforts [23] - Net loss attributable to common shareholders was 6.8 million in Q1 2020 and 2.9 million, an improvement from 4 million in Q2 2019, marking the best results in the company's history [24] - Cash and cash equivalents totaled 9.9 million as of March 31, 2020, bolstered by financing activities [25] Business Line Data and Key Metrics Changes - Pantheris revenue declined by 13% year-over-year, with strong relative performance attributed to the introduction of Pantheris SV [21] - Disposable sales decreased by 28%, but Pantheris sales only declined by 13%, indicating resilience in the product line [11] - Console-related sales and service revenue increased slightly on a sequential basis as new sites were rolled out [22] Market Data and Key Metrics Changes - Procedural volume saw a significant increase in May and June as states began to loosen restrictions, with July 2020 revenues higher than both July 2019 and July 2018 [10] - The company added 27 new lumivascular sites in the trailing 12 months, with five new sites launched in July 2020 [12][13] Company Strategy and Development Direction - The company is focused on expanding its proprietary image-guided approach to treating peripheral artery disease (PAD) and anticipates growth from the upcoming launch of Ocellaris, its next-generation CTO crossing system [8] - Avinger is committed to improving operational efficiency and has implemented cost-reduction measures while continuing to invest in product development [19][23] - The company plans to submit a 510(k) application for the L300 Lightbox imaging console, expected to enhance new account acquisition and operational efficiency [15][16] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the recovery from COVID-19 impacts, noting increased case activity and utilization trends continuing into the third quarter [27] - The company remains aware of ongoing challenges posed by the pandemic but is encouraged by positive progress and the resilience shown by the team [20][19] - Management anticipates FDA clearance for Ocellaris in the second half of 2020, with plans for a limited launch following approval [14][34] Other Important Information - The company has maintained its manufacturing operations as an essential business during the pandemic and has built safety inventory to meet customer needs [19] - Avinger has made significant progress in clinical studies despite delays due to COVID-19, with plans to resume patient enrollment in the fourth quarter [18][35] Q&A Session Summary Question: How was the sales performance in the recent quarter better than expected? - Management noted that the impact of COVID-19 was less severe than anticipated, with increased utilization in May and June contributing to better-than-expected revenue [30][31] Question: Are there any anticipated disruptions in the new product pipeline due to COVID? - Management confirmed that the Ocellaris timeline remains on track, with no significant delays expected in product development despite some slowdowns in clinical studies [34][35] Question: What is the outlook on the reimbursement environment? - Management indicated no significant changes are expected in reimbursement for atherectomy codes, with potential incremental opportunities related to imaging claims [37]