TransEnterix Inc (NYSE:TRXC) Q4 2019 Earnings Conference Call - Final Transcript

Mar 16, 2020 • 04:30 pm ET

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TransEnterix Inc (NYSE:TRXC) Q4 2019 Earnings Conference Call - Final Transcript

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Presentation
Operator
Operator

Good afternoon, and welcome to the TransEnterix Fourth Quarter and Full Year 2019 Business Update Conference Call. As a reminder, today's call is being webcast live and recorded. After the speaker presentation, there will be a question-and-answer session. [Operator Instructions]

I would now like to introduce your host, Mr. Mark Klausner of Westwicke. Please go ahead, sir.

Executive
Mark Klausner

Thanks operator, good afternoon everyone, and thank you for joining us on today's call. On the call with me today are Anthony Fernando, President and Chief Executive Officer; and Brett Farabaugh, Interim Chief Financial Officer.

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 expected to be filed today and 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 U.S. 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 result. 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 U.S. 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.

It is now my pleasure to introduce TransEnterix President and Chief Executive Officer, Anthony Fernando.

Executive
Anthony Fernando

Thanks, Mark, and thank you all for joining us today. On today's call, Brett will briefly review our fourth quarter financial performance and then, I will remind you of our key strategic priorities. The progress we have made against these priorities over the last few months and share our plans for the rest of 2020.

With that, I would like to hand the call over to Brett.

Executive
Brett Farabaugh

Thanks, Anthony. For the three months ended December 31, 2019, the Company reported revenue of $700,000 as compared to revenue of $7.5 million in the three months ended December 31, 2018. No revenue was recorded for Q4 system sales. Instruments and Accessories revenue in the fourth quarter was $286,000. Service revenue in the quarter was $402,000.

Gross margin for the fourth quarter was negative $10.2 million, a result of lower revenue in the quarter, and a $7.4 million inventory write-down due to the revised commercial strategy that we employed in the fourth quarter.