Avinger, a leading medical device company, held its second quarter 2024 earnings call, shedding light on the company's strategic initiatives, financial performance, and operational updates. The call, led by CEO Jeff Soinski and Principal Financial Officer Nabeel Subainati, provided investors and analysts with a comprehensive overview of Avinger's current status and future outlook.
Financial Performance
The second quarter of 2024 saw Avinger's revenue decrease slightly to $1.8 million compared to the first quarter of 2024, reflecting the impact of reduced field sales head count. However, gross margin improved to 20% compared to 18% in the first quarter of 2024, with the reduction in production activity and optimization of inventory levels. Operating expenses were down 16% to $4.5 million in the second quarter compared to the first quarter of 2024, following the implementation of an operating cost savings program. The net loss and comprehensive loss for the quarter were $4.4 million, with adjusted EBITDA standing at a loss of $3.8 million.
Strategic Initiatives
Avinger announced significant strategic moves in the second quarter, including a strategic partnership with Zylox-Tonbridge for the introduction of image-guided devices to the Greater China market. The partnership has strengthened Avinger's balance sheet, with the conversion of $11 million of debt into shares of a new series of convertible preferred stock and a public offering for up to $24 million in growth financing. Additionally, the company has implemented an operating cost savings program to streamline its peripheral business and emphasize its field sales team's support of existing peripheral device users.
Product Development
Avinger's focus on product development, particularly in the coronary artery market, has been a highlight of the call. The company is preparing for an IDE submission with the FDA for its first coronary product, with plans to file by the end of the third quarter of 2024. This new device is designed to redefine the market by providing physicians with a superior, simplified, and more successful solution for crossing coronary chronic total occlusions (CTOs), which are often complex, time-consuming, and expensive procedures with a high failure rate.
Looking Ahead
Avinger's strategic partnership with Zylox-Tonbridge, coupled with its product development initiatives, positions the company for a promising future. The company expects to see the full effect of cost reductions in the second half of 2024, with improved gross margin and reduced operating costs anticipated. The anticipated FDA approval of Avinger's IDE submission would allow the company to initiate the first human clinical study for its groundbreaking coronary device, bringing it one step closer to making its proprietary image-guided system available to physicians treating coronary CTOs.
In conclusion, Avinger's second quarter 2024 results call underscores the company's strategic focus on product development, operational streamlining, and strategic partnerships. With the potential for significant growth in the coronary artery market and the expanding presence in the Greater China market, Avinger is well-positioned for a strong future in the medical device industry.