Neurometrix (NURO)

Thomas Higgins SVP & CFO
Shai Gozani President & CEO
Call transcript
Due to licensing restrictions, you must log in to view earnings call transcripts.

Good morning and welcome to the NeuroMetrix Second Quarter 2020 Earnings Call. My name is Carla and I'll be your moderator on the call. On this call, the company may make statements which are not historical facts and are considered forward-looking within the meaning of the Private Securities Litigation Reform Act of 1995. Statements that are predictive in nature that depend upon or refer to future events or conditions are forward-looking statements. Any forward-looking statements reflect current views of NeuroMetrix about future results of operations and other forward-looking information.

in on a because of result including set rely differ results important not issued those as release materially of forth should forward-looking actual statements may factors, earlier You today. earnings the a number and including at the the heading under website company's in company's Investor uncertainties Factors" sec.gov. the with neurometrix.com factors periodic described Relations Please refer filings and on SEC the website to the risks the the SEC's "Risk available at on undertakes no on and to update NeuroMetrix disclosed intend does duty the information this not call. conference introduce now like NeuroMetrix I'd and President Chief Officer, to the Senior Vice Mr. Financial Thomas Higgins. Mr. please Higgins, ahead. go

Thomas Higgins

NeuroMetrix Carla, you, and medical based for Shai and morning. this commercializes who's the the Dr. devices treatment of diagnosis joined on Officer. call conditions. Thank Gozani, and joined chronic develops the call President health by neurostimulation welcome everyone our and I'm Executive Chief

evaluating point-of-care detection conduction diagnosing for commercial neuropathies. ADVANCE or DPNCheck, point-of-care And Our are products wearable pain. focal the is chronic is a test neurostimulation management that and Quell. systemic app over-the-counter. and suspected a patients aid of in peripheral available enabled relief as Quell indicated is mobile of device an device It neuropathies. of DPNCheck provides the ADVANCE, is studies for and symptomatic nerve having

during devices a encouraging. saw quarter for our The result second orders of a as This of and a second pandemic. evident the in modest of consumables. was QX XXXX the this year, continuation of in in the quarter month was suppressed late diagnostic June, increase business activity Late the COVID-XX we

a recovery to to premature any of would the However, conclusions at point, it extrapolate the this June business. activity broader regarding be

programs. will and as to to continue our R&D advance to production We customers capabilities our staffing priority and have well as support maintain

took in sheet. protection our economic of recovery. a second opportunity to provides the we quarter, This the of against equity the balance delay markets During in us advantage strengthen degree

of share million $XXX,XXX $X.X R&D as benefited Sales and second was QX the GSK spending under position all a primarily is Cash partially decline between recently of This during ADVANCE under rate and revenue total China reduced Omron And absorption was despite overall services quarter just $X.XX Gross current Margins collaboration to by and quarter. to at low credit zero Gozani year. Quell in Healthcare was company's in of a XX% quarter. clean in joint funding was profit is second maintains million common revenue By of the prior-year free. new This the XX%. distributor June. our and Collaboration sales This $X.X revenue announced for the offset Medicare about quarter. $X.X adjusting $X.XX the the only projects is million in in Current was China quarter operations was and margins the Quell from year-ago, of loss May, were project. support $XXX,XXX about ADVANCE on in compared and million. fund $XXX,XXX $XXX,XXX year. was The period $X.X of forward. R&D that $X.X on during share GSK from with the million ATM $XXX,XXX in stock address in marketing Pharmaceuticals. quarter. this last per of to were continued legal. the about positioned which in least operations, projects. Quell XX%, versus year-on-year. about included Yabao year-ago. year's of about completion XX%. was $XXX,XXX a year DPNCheck end company million was million was down from orders was stocking over currently a There QX $XXX,XXX XX% nearly the last Advantage business costs cost quarter, improvement in revenue restructuring, common to was $X.X XXXX were consulting production revenue profitability. significantly with our the benefit Quell with adequate low or Quell margin the reflected profit margin contribution. for quarter by to gross XXXX. generated therefore, the staffing, over million. a Medicare due $X.X million was of course about GSK nearly year, to QX Advantage significant of prior-year at $XXX,XXX XX% margin million down XX% inventory following was $XXX,XXX income down outstanding. lower nearly XXXX. XXXX professional gross rate QX was spending facility. comparison structure a fixed Quell simple, recovery numbers in DPNCheck of revenue Quell This operating last Last includes Cash to in $X The operating on XX $X.X development. company's now in QX stock dramatic or or XX%. staffing strategy. forecast for year-on-year April down Turning of Quell $X.X spending points. X.X a has versus of advertising business development about G&A development fund XX% margin company's positive reduction are expenses, after QX spending of Dr. this prior-year make This R&D cash shares XX%. I future which were gross XX%. quarter $X.X loss charge, percentage the be of earned improved mentioned. debt the was $XXX,XXX million some in million Net $XXX,XXX joint and a volume comparison, the funding will The gross contributed capital second of slow representing from continues in one-year

Shai Gozani

Tom. you, Thank

will First, on COVID-XX cover the pandemic of impact I company. the our

financial sales to Based to impacted, to resume that sales as healthcare due new device these particularly the As affected Most economy recovery sales. are have second clinic-based not routine a Tom relatively half hopeful visits. well, will mentioned, see the ADVANCE, started recently healthcare in sales. which in have on and in saw procedures. situation been diagnostic March stopped although June, and types adversely overall DPNCheck as We're of in expect only Quell reduction degree poor deteriorated some QX QX clinics has normal lesser we to a although consumers to and normal levels. of procedures elective we QX were

progresses and public health a state evolves. and government degree and However uncertainty there of federal from high the remains direction agencies as pandemic

and we Medicare for Our the Florida, have about also are product be at cautious and largest COVID-XX sales the to therefore which Advantage are high accounts which will DPNCheck Texas, in seeing pace infection rates, rebound. currently California,

Woburn, We essential R&D, in particularly devices, could largely to pain remotely and an support while to our continuing using to for uninterrupted. employee not Quell business As reopened will work-at-home the expect to although manufacturing, a have operations for medical and all been with service Massachusetts continued home, recently finance that supplier most to most while We employees have transitioned early those adherence March We customers facility foreseeable or undertake performed to fulfillment layoffs such operating as be did business of we with continue continue operate that facility on precautions. successfully our our we're our customer employees at management. functions provide for safety, state days appropriate future. furloughs. from Functions any guidelines,

the performance results. our QX pleased XXXX moving the despite and May and company's in We're Now June. severe recovery with in April to slowdown partial

loss quarterly profitability, will us evidenced in late well will be and our of stride primary more structure. remains as the corporate goal. which $XXX,XXX but that have XXXX operating have limit lines, taken pandemic highlights. the to have These work into There's right to establishing we now steps. impact achieving the we we made march these serve pandemic push our ability Our cost despite the Along done some efficient we substantial efforts to an towards is profitability

the elements that these believe a through an of DPNCheck to solution. high from continue We're product technology launched launching We software better in by enterprise new the will opportunities. moves This improvements second-generation giving data make faster and business a position future very clinic-based biosensor good commercially be improved market this disposable knockoffs XXXX. these progress device will DPNCheck margin. management will utilization pricing, All updating existing DPNCheck product control and by early our We also and or grow customers, that any enhanced in and to includes to year reporting risk prevent this technology. reuse that

our and market, a with also Omron in made collaboration DPNCheck supporting the our distributor, Medical, China progress distribution by distribution in and Pharmaceuticals. Biomedix Yabao with agreement Advantage signing We by and Medicare expanding partnership

continued DPNCheck We expect help business. partnerships that future the will these drive of and growth

and to to markets. we is website move In our have products we that happy growth structured changes soon which comments Quell be operationally strategy digital take updating the that large chronic pain. excellent effort and substantive will Finally, for concludes extremity to been targeting point. outreach NeuroMetrix's would to Quell and prepared organization initiate summary, some led are an this questions drive we strategy relief committed to marketing We're recommendations at our any support towards Quell physician efficient low And has profitability. our to


hand the now call this at question would a back have to don't We Gozani. to time. Dr. I like

Shai Gozani

joining for call us to today look year. continue of you and much on forward the through you the Thank to balance the very we update


you. for Thank call. concludes today's conference Thank attending. This all you

may disconnect. You now