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01/11 03:08
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Access earnings results, analyst expectations, report, slides, earnings call, and transcript.
The earnings call presents mixed signals: while product development and business updates show promise, especially in Europe, financial performance is concerning with declining system revenue and increasing operating losses. The Q&A reveals positive reception of new products but highlights uncertainties in U.S. regulatory approvals and market adoption challenges. The lack of a share repurchase program and structural challenges further dampen sentiment. Overall, the mixed guidance and financials, coupled with regional uncertainties, suggest a neutral stock price movement.
Revenue $7.5 million, growth of 9% from $6.9 million in the prior year first quarter.
System Revenue $2 million, compared to $2.6 million in the prior year first quarter.
Recurring Revenue $5.5 million, compared to $4.3 million in the prior year first quarter.
Gross Margin 54% of revenue, with recurring revenue gross margin at 68% and system gross margin at 15%.
Operating Expenses $10 million, including $3.2 million in non-cash charges, compared to adjusted operating expenses of $6.8 million, up from $6.1 million in the prior year.
Operating Loss $5.9 million, compared with $4.7 million in the previous year.
Net Loss $5.8 million, compared with $4.5 million in the previous year.
Free Cash Flow Negative $1.8 million, compared to negative $2.3 million in the previous year.
Cash and Cash Equivalents $10.7 million, with no debt.
Map-iT Catheters: Sales in the first quarter were over $1 million, with a 30% sequential growth in the U.S.
MAGiC Catheter: Received European approval and began commercial efforts across EU hospitals, expecting revenue to reach approximately $1 million per quarter by the end of the year.
GenesisX: First purchase order received in Q1, with initial soft launch planned and first commercial installation expected this summer.
Market Expansion in Europe: Initial adoption of MAGiC at approximately 20% of hospital customers, with ongoing administrative efforts for broader sales.
GenesisX Launch: Showcased at major electrophysiology conferences, receiving positive feedback from key opinion leaders.
Recurring Revenue Growth: Recurring revenue for Q1 was $5.5 million, up from $4.3 million year-over-year.
Operational Efficiencies: Expecting recurring revenue margins to return to normal levels by Q3 2025.
Strategic Focus: Core strategy includes building a portfolio of proprietary catheters and expanding the installed base of robotic accounts.
Regulatory Milestones: Six active regulatory reviews ongoing, with expectations for multiple product approvals in the near term.
Structural Challenges: The company faces significant headwinds from the structural challenges of its old product ecosystem, which may hinder growth.
Regulatory Approval Delays: The company is working through administrative submissions for the MAGiC catheter in Europe, which may delay revenue generation.
Market Awareness and Adoption: There is a gradual process required to generate awareness and interest in new products, which may slow initial adoption rates.
Supply Chain and Manufacturing: The company is preparing its supply chain and manufacturing processes for a full launch of GenesisX, which could face challenges.
Economic Uncertainty in China: Ongoing macroeconomic conditions in China create uncertainty regarding the ability of hospitals to purchase Genesis systems.
Tariffs Impact: Current tariffs are expected to cause less than a 1% increase in expenses, which could affect overall profitability.
Cash Flow Concerns: Despite reduced cash use expectations, the company reported a negative free cash flow of $1.8 million in Q1 2025.
Recurring Revenue Growth: Recurring revenue growth in Q1 reflects predominantly the contribution of the Map-iT family of differentiated diagnostic EP catheters, with sales over $1 million and a 30% sequential growth in the U.S.
MAGiC Catheter: Received European approval for MAGiC catheter, expecting revenue to ramp up significantly, reaching approximately $1 million per quarter by the end of 2025.
GenesisX Launch: First GenesisX purchase order received, with initial soft launch planned and full launch expected shortly after initial commercial use.
Regulatory Approvals: Six active regulatory reviews ongoing, with expectations for U.S. approval of MAGiC and GenesisX in the second half of 2025.
Revenue Guidance: Reiterating expectation of double-digit revenue growth for full year 2025, with system revenue fluctuating between $2 million to $3 million per quarter.
Recurring Revenue Expectations: Expecting recurring revenue to reach $7 million in Q4 2025.
Cash Use: Expect reduced cash use in 2025 compared to 2024, with a relatively flat cash balance.
Tariffs Impact: Anticipated to cause less than a 1% increase to expenses.
Share Repurchase Program: None
The earnings call presented mixed signals: while product development with GenesisX and new catheters is promising, financials show consistent losses and a negative cash flow. The Q&A reveals a cautious approach to new launches and regulatory approvals, indicating uncertainty. No strong catalysts like partnerships or guidance changes were mentioned. Therefore, the stock is likely to remain stable in the short term.
The earnings call presents mixed signals: while product development and business updates show promise, especially in Europe, financial performance is concerning with declining system revenue and increasing operating losses. The Q&A reveals positive reception of new products but highlights uncertainties in U.S. regulatory approvals and market adoption challenges. The lack of a share repurchase program and structural challenges further dampen sentiment. Overall, the mixed guidance and financials, coupled with regional uncertainties, suggest a neutral stock price movement.
Despite a 39% increase in Q4 revenue, operating losses have widened, and there are significant supply chain challenges. The absence of a share repurchase program and conservative guidance further dampen sentiment. While there are promising product developments, regulatory and market uncertainties, especially in China, pose risks. The Q&A session highlighted management's inability to provide clear timelines for key product approvals, adding to investor concerns. Overall, the negative financial indicators and uncertainties outweigh the positive revenue growth.
The earnings call reveals mixed signals: strong revenue growth in Q4 2024 and positive free cash flow, but financial losses and dependency on Johnson & Johnson pose risks. The Q&A shows uncertainty in revenue guidance and regulatory approvals, with vague responses from management. The lack of shareholder return plans and the company's financial strain further balance the positive aspects, resulting in a neutral sentiment.
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