Asensus Surgical, Inc.
Q2 2021 Earnings Call Transcript

Published: 5 Aug 2021

[Operator:]

Good afternoon, ladies and gentlemen, and welcome to the Asensus Surgical, Inc. Second Quarter 2021 Conference Call. During the presentation, all participants will be in a listen-only mode. Afterwards, we will conduct the question-and-answer session. As a reminder, this conference is being recorded. I would now like to turn the call over to Mr. Mark Klausner of Westwicke. Please go ahead.

[Mark Klausner:]

Good afternoon everyone, and thank you for joining us for the Asensus second quarter 2021 conference call. On the call with me today are Anthony Fernando, President and Chief Executive Officer; and Shameze Rampertab, Chief Financial Officer. Before we begin, I would like to caution listeners that certain information discussed by management during this conference call, including any guidance provided are forward-looking statements covered under the Safe Harbor provisions of the Private Securities Litigation Reform Act of 1995. Actual results could differ materially from those stated or implied by our forward-looking statements due to risks and uncertainties associated with the company's business, including any impact from the COVID-19 pandemic. The company undertakes no obligation to update the information provided on this call. For a discussion of risks and uncertainties associated with the Asensus Surgical business, I encourage you to review the company's filings with the Securities and Exchange Commission, including the 2020 Form 10-K filed in March 2021 and the Form 10-Q expected to be filed later today and other filings we make with the SEC. During this call, we will also present certain non-GAAP financial information related to adjusted net loss attributable to common stockholders and adjusted net loss per common share attributable to common stockholders. Management believes that these non-GAAP financial measures taken in conjunction with US GAAP financial measures provide useful information for both management and investors by excluding certain non-cash and other expenses that are not indicative of the company's core operating results. Management uses non-GAAP measures to compare our performance relative to forecast and strategic plans to benchmark our performance externally against competitors and for certain compensation decisions. Reconciliations from US GAAP to non-GAAP results are presented in the tables accompanying our earnings release, which can be found in the Investor Relations section of our website. It is now my pleasure to turn the call over to Asensus Surgical's President and Chief Executive Officer, Anthony Fernando.

[Anthony Fernando:]

Thanks Mark, and thank you all for joining us today. On today's call, I will provide a brief summary of our recent accomplishments, and then ask Shameze to review our financial performance, after which I will discuss our performance during the second quarter, as well as our priorities for the rest of 2021 before turning to Q&A. Before turning the call over to Shameze, I would like to provide an overview of our recent performance. Since our last call, we have made significant progress towards a number of our goals for 2021. We signed lease agreements with two hospitals both previously announced, one of which has already begun performing cases with test enhanced during the quarter. We reached two key regulatory milestones with the filing of our FDA 510(k) submission and subsequent clearance for 5-millimeter articulating instruments, and filing our FDA 510(k) submission for the expanded capabilities of the Intelligent Surgical Unit, or ISU. In addition, we continue to see strong global procedure volume trends during the quarter with particularly strong growth in the US. We also strengthened the organization's leadership with the introduction of two new Board members Dr. Elizabeth Kwo and Kevin Hobert. Both Liz and Kevin have significant experience bringing innovative digital technologies that leverage AI to the market. Liz has highly specialized expertise in utilizing predictive analytics and big data to improve patient outcomes through digital solutions. And Kevin was an integral part in the early development of innovative digital imaging technology that leverage AI and proprietary algorithms. We look forward to tapping into their combined talent, as we continue to work to realize the vision of performance guided surgery. We are very proud of what we were able to accomplish and look forward to continuing this momentum throughout 2021. With that I will turn the call over to Shameze for a financial update.

[Shameze Rampertab:]

Thanks Anthony. Turning to the second quarter. For the three months ended June 30 2021. The company reported revenue of $1.1 million as compared to revenue of $0.7 million in the three months ended June 30, 2020. Revenue in the second quarter of 2021 included $0.4 million in system revenue, $0.3 million in instruments and accessories and $0.4 million in services. For the three months ended June 30, 2021, total operating expenses were $14.8 million as compared to $13.6 million in the three months ended June 30, 2020. For the three months ended June 30, 2021 net loss attributable to common stockholders was $13.2 million or $0.06 per share as compared to net loss attributable to common stockholders of $14.1 million or $0.27 per share in the three months that ended June 30, 2020. For the three months ended June 30, 2021 the adjusted net loss attributable to common stockholders was $12.7 million or $0.05 per share as compared to an adjusted net loss of $10.9 million or $0.21 per share in the three months ended June 30, 2020. Adjusted net loss is GAAP net loss adjusted for the following items

[Anthony Fernando:]

Thanks Shameze. I will now provide an update on recent performance as well as the progress we have made on the key focus areas for 2021. As a reminder these are

[Question-and:]

[Operator:]

[Anthony Fernando:]

Thank you, again for your interest in Asensus Surgical. And we look forward to updating you on our progress on our next quarterly call. Thank you.

[Operator:]

That does conclude the conference call for today. We thank you for your participation. And ask that you please disconnect your lines.