TransEnterix, Inc. (NYSE MKT:TRXC) Q3 2018 Earnings Conference Call - Final Transcript

Nov 08, 2018 • 04:30 pm ET

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TransEnterix, Inc. (NYSE MKT:TRXC) Q3 2018 Earnings Conference Call - Final Transcript

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Q & A
Analyst
Jeffrey Cohen

format and when those timelines may hit as far as getting them out there into the public's use?

Executive
Todd Pope

What we've talked about is we want to submit our 510(k) for 5-millimeter articulating instruments by the end of this year 2018. And in CE Mark countries, we're looking to obtain that CE Mark by the end of this year in 2018. So, those are relatively near-term milestones that we continue to feel good about.

Executive
Joe Slattery

As far as the instruments; it's typical instruments for surgery, needle driver, grasper, those kind of things.

Analyst
Jeffrey Cohen

And you'll have cases later this year in Europe expected after the CE Mark?

Executive
Joe Slattery

We can't really schedule them until we get the CE Mark. So it's not something that we can say for sure is going to happen this year or not.

Executive
Todd Pope

But in the past, every time we've had approvals and a reasonable timeframe after that, we get the orders in, we get the orders out and delivered. We get people trained up and cases follow shortly thereafter.

Operator
Operator

Rick Wise, Stifel.

Analyst
Drew Ranieri

Just a quick question for you on guidance for the fourth quarter. I think this is the first time that you actually really gave like a revenue range for guidance. But I was just hoping to get a better sense of your insights on the Senhance ASP that's embedded in your guidance range. How should we think about the price between US and the rest of world? And maybe the system breakdown as well.

Executive
Joe Slattery

You can see from the range that 4 to 5, the gap between the two numbers we gave is $1.3 million and I think that's a good number to think about what is the incremental revenue that's derived in a quarter from an additional sale. It's going to vary between one market to the next, whether it's system configuration, local pricing, whether the sale had a vision system or say depending on instrument selection and how many trays they acquire on their initial sale. But we feel like $1.3 million per incremental system is a moderately conservative way to look at our revenue model. As it relates to our Q3 results and our Q4 guidance, the orders that we've gotten in have been a little bit more than that, about $1.4 million. But depending on territory mix and what the configuration is, we just think it's an appropriately conservative number to focus on $1.3 million.

Operator
Operator

Thank you. That concludes our question-and-answer session for today. I would now like to turn the call back to Todd Pope for closing remarks.

Executive
Todd Pope

Thanks to all of you for joining us on today's call. We look forward to updating you on our progress in the next quarter. Thank you.

Operator
Operator

Ladies and gentlemen, thank you for participating in today's conference. This does conclude today's program. You may all disconnect. Everyone, have a great day.