How did APYX's Q4 earnings surprise investors?

APYX's Q4 earnings report revealed a mixed picture with several surprises for investors:

1. **Revenue Decline**: Total sales fell by 3% year-over-year, coming in at $14.2 million. This was a slight improvement from the preliminary estimate of $14.1 to $14.3 million, but it still reflected a decrease in overall revenue. This decline was primarily due to a 16% decrease in OEM revenue and relatively flat Advanced Energy revenue compared to the previous year.
2. **Segment Performance**: The Advanced Energy segment showed resilience, achieving $12.1 million in sales, marking a 30% sequential growth from Q3 2024. This performance highlights the segment's importance and potential for future growth. However, the OEM segment's decline underscored the challenges faced in this area.
3. **Cost Savings and Restructuring**: Apyx Medical implemented a restructuring program, reducing its U.S. workforce by 25%, resulting in annual cost savings of approximately $4.3 million. This initiative improved financial efficiency and was a positive aspect of the earnings report.
4. **Financial Metrics Improvement**: The company reported a decrease in operating expenses from $14.7 million to $12 million, indicating effective cost management. Despite the revenue decline, Apyx Medical reduced its net loss by 52% to $4.6 million.
5. **Future Prospects**: The development of the AYON Body Contouring System, with FDA submission completed 90 days early, is a positive sign for future equipment sales growth. The company plans to launch the system in the latter half of 2025, which could positively impact financial performance.

Overall, while the revenue decline may have been a surprise, the company's focus on cost-saving measures, segment performance, and future product developments provided some reassurance to investors. The mixed results reflect both the challenges and opportunities facing Apyx Medical in the current market landscape.