Edap Tms SA (NASDAQ:EDAP) Q2 2020 Earnings Conference Call - Final Transcript

Aug 27, 2020 • 08:30 am ET

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Edap Tms SA (NASDAQ:EDAP) Q2 2020 Earnings Conference Call - Final Transcript

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Presentation
Operator
Operator

Greetings, and welcome to EDAP TMS Second Quarter 2020 Earnings Conference Call. [Operator Instructions] As a reminder, this conference is being recorded.

I would now like to turn the conference over to your host, Mr. Glenn Garmont, Investor Relations. Thank you. You may begin.

Executive
Glenn Garmont

Thanks very much Laura. Good morning, and thank you for joining us for the EDAP TMS Second Quarter 2020 Financial and Operating Results Conference Call.

On today's call, we will hear from Marc Oczachowski, Chairman and Chief Executive Officer; and Francois Dietsch, Chief Financial Officer.

Before we begin, I would like to remind everyone that management's remarks today may contain forward-looking statements, which include statements regarding the company's growth and expansion plans. Such statements are based on management's current expectations and are subject to a number of risks and uncertainties that could cause actual results to differ materially from those described in such forward-looking statements. Factors that may cause such a difference include, but are not limited to, those described in the company's filings with the Securities and Exchange Commission.

With that, I would like to now turn the call over to EDAP's Chairman and Chief Executive Officer, Marc Oczachowski. Marc?

Executive
Marc Oczachowski

Thank you, Glenn, and good morning, everyone. As we continue to grapple with the global COVID-19 pandemic, we hope all of our listeners are safe and healthy. We appreciate you taking the time to join us this morning. I will start with a brief operational update and then turn the call over to Francois Dietsch, to review our financial performance.

We made significant progress during the quarter and subsequent periods further solidifying our position as a leader in the field of High-intensity focused ultrasound. I would like to begin my comments this morning with a review of our most recent news.

As we first discussed last quarter and in line with our expectations, the COVID-19 pandemic did impact our ability to call on doctors and hospitals during the second quarter and reduced treatment volume across our installed base as well, which affects our treatment-driven recurring revenue.

Total revenue in the quarter was EUR9.3 million or $10.3 million as compared to EUR12.5 million or $14 million in the second quarter of 2019. The year-over-year decline was impart due to lower HIFU device sales, we sold three Focal One units and two Ablatherm units in the year ago period versus two Focal One units in the second quarter of this year.

Sales of HIFU disposables also declined as we anticipated due to lower procedure volumes during the quarter. Despite the negative impacts in our revenue due to the challenging international business environment, we carefully managed our expenses and delivered a profitable quarter on an operating basis. As we recently announced, the clinical value of Focal One was further validated by a number of sales successes late in the second quarter, despite the impact of the ongoing COVID-19 pandemic.

This is a testament to the entire EDAP team that we were able to maintain our focus during these challenging