MiMedx Group, Inc. (NASDAQ:MDXG) Q1 2016 Earnings Conference Call - Final Transcript
Apr 26, 2016 • 12:00 am ET
Good day, ladies and gentlemen. And welcome to the Q1 2016 MiMedx Group Earnings Conference Call. At this time, all participants are in a listen-only mode. Later, we will conduct a question-and-answer session, and instructions will follow at that time. (Operator Instructions) As a reminder, this conference call will be recorded.
I would now like to introduce your host for today's conference, Mr. Thornton Kuntz, Senior Vice President of Administration. Please go ahead.
Thank you, operator and good morning everyone.
(Forward-Looking Cautionary Statements)
With that I will turn the call over to Pete Petit, MiMedx's Chairman and CEO.
Thank you, Thornton. Good morning, I thank you for joining us for our first quarter conference call. I have with me today, Bill Taylor, our President and Chief Operating Officer; Mike Senken, our Chief Financial Officer; and Chris Cashman, our Chief Commercialization Officer. There are other corporate executives with us.
As we reported in our pre-announcement on April 10th, our revenues came in at $53.4 million, which was a 31% increase over first quarter of 2015. Our wound care revenue grew at 32% and our SSO revenue grew at 28%. We have previously mentioned three factors that affected revenue for the first quarter, the revenue is primary affected by the implementation of a new and relatively sophisticated sales management system, which required all the wound care and surgical sales force actually tag tissues into the system through their iPhones or iPads. There was some flaws in tagging process which caused a great deal of confusion.
However, I would like to point out that when we compare the first 15 business days of January, and the first 15 days of April, our revenues are up over 25% in April. We believe this is a clear indication many of the issues that confronted our sales organization in the first quarter had been resolved. However, I want to make it very, very clear that this is a 25% plus revenue increase in the first several weeks of the second quarter, should not be translated into a quarterly expectation. There are numerous factors that affect this order right during the quarter.
I want to mention one other thing and that is this new sales management system will soon prove to be one of the MiMedx's most effective assets. We've put a lot of time and effort into this over the last year. It will prove to be a very effective way to manage our sales efforts and activities, something we must do at this stage of our growth in order to be maintaining growth rates we expect in the future. It will be an asset that won't be matched by any of our competitors and will just further trench us in terms of our customers and our efficiencies and effectiveness in our sales processes.
Now relative to SSO revenue, our newly acquired surgical biological subsidiary came in short of their projected first quarter revenue. As we discussed on April 11th call, this is primarily related to their