Misonix, Inc. (NASDAQ:MSON) Q1 2019 Earnings Conference Call Transcript

Nov 08, 2018 • 04:30 pm ET


Misonix, Inc. (NASDAQ:MSON) Q1 2019 Earnings Conference Call Transcript


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Ladies and gentlemen, thank you for standing by. Good day, and welcome to the Misonix First Quarter Fiscal Year 2019 Earnings Call. Today's conference is being recorded. At this time, I would like to turn the conference over to Norberto Aja, IR. Please go ahead.

Norberto Aja

Thank you, operator. Good afternoon, everyone. We'll get started in just a minute with management's presentation and comments. But before doing so, let me take a minute to read the Safe Harbor disclosure.

(Forward-looking Cautionary Statements) Today's call and webcast will also include non-GAAP financial measures within the meaning of the SEC Regulation G. When required, a reconciliation of all non-GAAP financial measures to the most directly comparable financial measures calculated and presented in accordance with GAAP can be found in today's press release as well as in the Company's website. With that, I'd now like to turn the call over to Mr. Stavros Vizirgianakis, President and CEO of Misonix. Please go ahead, Stavros.

Stavros Vizirgianakis

Thank you, Norberto, and good afternoon, everyone. Thank you for joining us on the call today to review our fiscal 2019 first quarter results. Joining me on the call today is Joe Dwyer, our CFO.

The demonstrated clinical benefits of Misonix's ultrasonic surgical devices are a clear driver behind the strong demand for our product and improved competitive position across our domestic and international markets. As outlined in today's release, despite some supply chain challenges during the quarter, we are pleased with our Q1 top line financial results, including 29% overall revenue growth, 71% gross margin and a continued healthy capital structure. The 29% top line increase reflects strong growth across BoneScalpel, our precise bone-cutting solution; and SonicOne for wound debridement applications.

Looking at our revenue sources, consumable sales increased 18% and accounted for 68% of total first quarter sales, while equipment sales grew 59% and represented 32% of sales. BoneScalpel, our state-of-the-art ultrasonic bone-cutting and sculpting system capable of making precise cuts with minimal impact, continued its growth trajectory with a steady increase in overall revenue. We experienced a small decline in our traditional SonaStar business related to a reduced focus in the aging platform. During the quarter, we saw a strong growth of over 38% in SonicOne disposables on the domestic front.

Doctors are seeing the superior healing outcomes associated with the use of ultrasonic debridement for lower extremity wounds, and that is being reflected in increased usage of SonicOne and the continued growth in demand for disposables.

Geographically, international revenue was driven by strong sales in China, as well as solid sales performance in a number of other key markets. During the quarter, we continued to focus on expanding our share of market, particularly in geographic regions that we have identified as high-growth opportunities. In this regard, we recently conducted a number of international training sessions in Dubai, Portugal and Singapore to further educate and empower our distributors and the sales teams. Over 100 sales professionals attended the training sessions, and feedback was very positive, which is critical to