Market Overview

Apyx Medical Corporation Reports Third Quarter of 2019 Financial Results and Updates Fiscal Year 2019 Outlook

Share:

Advanced Energy Sales of $6.1 million in Q3, up 104% year-over-year

Apyx Medical Corporation (NASDAQ:APYX) (the "Company"), a maker of medical devices and supplies and the developer of Helium Plasma Technology, marketed and sold as Renuvion® in the cosmetic surgery market and J-Plasma® in the hospital surgical market, today reported financial results for its third quarter ended September 30, 2019.

Third Quarter 2019 Financial Summary:

  • Total Q3 revenue from continuing operations of $7.6 million, up 106% year-over-year.
    • Advanced Energy revenue of $6.1 million, up 104% year-over-year.
    • OEM revenue of $1.5 million, up 116% year-over-year.
  • Total Q3 GAAP net loss from continuing operations of $4.3 million versus total GAAP net loss from continuing operations of $0.4 million for the third quarter of 2018.
  • Total Q3 adjusted EBITDA loss from continuing operations of $3.7 million versus adjusted EBITDA loss from continuing operations of $2.4 million for 2018.

Highlights Subsequent to Quarter End:

  • On October 14, 2019, the Company announced that it has initiated subject enrollment in an FDA approved U.S. Investigational Device Exemption clinical study evaluating the use of its Renuvion technology in skin laxity procedures in the neck and submental region.
  • On October 14, 2019, the Company announced that it received U.S. Food and Drug Administration 510(k) clearance to market and sell the Apyx Plasma/RF Handpiece, a new addition to the Renuvion product family.

Management Comments:

"Our performance during the third quarter was impressive and represents a continuation of the better-than-expected growth and profitability performance we have generated throughout 2019," said Charlie Goodwin, President and Chief Executive Officer. "I am extremely proud of the organization's ability to execute our strategic growth objectives and the progress we made during the third quarter is notable: we drove revenue growth of 106% year-over-year, led by 104% growth in Advanced Energy sales, we made advancements in both our clinical and regulatory strategies, and we realized early benefits to our Advanced Energy gross margins as a result of our focus on improving our manufacturing efficiency."

Mr. Goodwin continued: "We are raising our 2019 revenue, net loss and adjusted EBITDA loss guidance range based upon the stronger than expected financial results that we have achieved in the third quarter and our updated outlook for the rest of 2019. We remain focused on continued execution towards our strategic growth objectives: to increase our share of the $1.5 billion U.S. cosmetic surgery market, to penetrate existing international markets and to expand into new countries with strong demand from cosmetic surgeons for our highly differentiated Renuvion technology. We will continue to make targeted investments in order to deliver strong, sustained growth and improving profitability in the years to come. With truly innovative technologies, a solid balance sheet and an entire organization dedicated to supporting our surgeon customers and improving patient outcomes, we remain convinced that Apyx Medical is uniquely positioned to reshape the cosmetic surgery market, while delivering attractive returns for our shareholders."

Third Quarter 2019 Results:

The following table represents revenue from continuing operations by reportable segment:

 

 

Three Months Ended

September 30,

 

Increase/Decrease

 

Nine Months Ended

September 30,

 

Increase/Decrease

(In thousands)

 

2019

 

2018

 

$

Change

 

%

Change

 

2019

 

2018

 

$

Change

 

%

Change

Advanced Energy

 

$

6,094

 

 

$

2,985

 

 

$

3,109

 

 

104.2

%

 

$

15,734

 

 

$

8,727

 

 

$

7,007

 

 

80.3

%

OEM

 

1,481

 

 

687

 

 

794

 

 

115.6

%

 

4,038

 

 

2,033

 

 

2,005

 

 

98.6

%

Total

 

$

7,575

 

 

$

3,672

 

 

$

3,903

 

 

106.3

%

 

$

19,772

 

 

$

10,760

 

 

$

9,012

 

 

83.8

%

Total revenue from continuing operations for the three months ended September 30, 2019, increased $3.9 million, or 106.3%, to $7.6 million, compared to $3.7 million in the prior year. Sales of the Company's Advanced Energy generators and handpieces drove the increase in total revenue in the third quarter of 2019, with OEM segment sales contributing modestly to the year-over-year increase in total revenue from continuing operations during the third quarter 2019 period. Advanced Energy segment sales increased approximately $3.1 million, or 104.2% year-over-year, to $6.1 million, compared to approximately $3.0 million last year, as a result of additional sales force in the U.S. and new international distributors. This increase in selling infrastructure has resulted in increases of generator and handpiece sales, both domestically and in international markets. OEM segment sales increased $0.8 million, or 115.6% year-over-year, to $1.5 million, compared to $0.7 million last year, primarily attributable to sales to Symmetry under our Manufacture and Supply Agreement.

 

 

Three Months Ended

September 30,

 

Increase/Decrease

 

Nine Months Ended

September 30,

 

Increase/Decrease

(In thousands)

 

2019

 

View Comments and Join the Discussion!
 
Don't Miss Any Updates!
News Directly in Your Inbox
Subscribe to:
Benzinga Premarket Activity
Get pre-market outlook, mid-day update and after-market roundup emails in your inbox.
Market in 5 Minutes
Everything you need to know about the market - quick & easy.
Daily Analyst Rating
A summary of each day’s top rating changes from sell-side analysts on the street.
Fintech Focus
A daily collection of all things fintech, interesting developments and market updates.
Thank You

Thank you for subscribing! If you have any questions feel free to call us at 1-877-440-ZING or email us at vipaccounts@benzinga.com