TransEnterix Inc (NYSE:TRXC) Q2 2019 Earnings Conference Call - Final Transcript

Aug 07, 2019 • 04:30 pm ET


TransEnterix Inc (NYSE:TRXC) Q2 2019 Earnings Conference Call - Final Transcript


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Good afternoon, ladies and gentlemen, and welcome to the TransEnterix Second Quarter 2019 Financial and Operating Results Conference Call. As a reminder, this call is webcast live and recorded.

It is now my pleasure to introduce your host, Mr. Mark Klausner, of Westwicke Partners. Please go ahead, sir.

Mark Klausner

Good afternoon, and thank you for joining us for the TransEnterix second quarter conference call. Joining us on today's call are TransEnterix President and Chief Executive Officer, Todd Pope; and its Executive Vice President and Chief Financial Officer, Joe Slattery. I would like to remind you that this call is being webcast live and recorded. A replay of the event will be available following the call on our website. To access the webcast, please visit the Events link in the IR section of our website,

Before we begin, I would like to caution listeners that certain information discussed by management during this conference call, including any guidance provided, are forward-looking statements covered under the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Actual results could differ materially from those stated or implied by our forward-looking statements due to risks and uncertainties associated with the Company's business. The Company undertakes no obligation to update the information provided on this call. For a discussion of risks and uncertainties associated with TransEnterix business, I encourage you to review the Company's filings with the Securities and Exchange Commission, including the Form 10-K for the year ended December 31, 2018, filed on February 27, 2019, and the Form 10-Q for the quarter ended June 30, 2019, expected to be filed prior to the filing deadline and the other filings we make with the SEC.

During this call, we will also present certain non-GAAP financial information related to adjusted net loss and adjusted earnings per share. Management believes that non-GAAP financial measures taken in conjunction with US GAAP financial measures provide useful information for both management and investors by excluding certain non-cash and other expenses that are not indicative of the Company's core operating results. Management uses non-GAAP measures to compare our performance relative to forecast and strategic plans to benchmark our performance externally against competitors and for certain compensation decisions. Reconciliations from US GAAP to non-GAAP results are presented in the tables accompanying our earnings release, which can be found in the Investor Relations section of our website.

With that, it's my pleasure to turn the call over to TransEnterix's President and Chief Executive Officer, Todd Pope.

Todd M. Pope

Thank you, Mark, and welcome to our second quarter 2019 conference call. On today's call, I will discuss our recently announced AutoLap transaction and provide an update on our second quarter operating performance. I'll then turn the call over to Joe to provide a financial overview, after which, we'll open up the line for questions.

Starting with our second quarter performance. We reported revenue of $3.6 million comprised of one system sale as well as instruments, accessories and service and the recognition of revenue from prior