May 2, 2006 conference call discussing earnings of 1Q'06
Financial results
rev 1.4M up 41%
seq 330K up 30%
alternans sales 77% v 68% strong increase in demand
59% increase q-q
GM 67.8%v 62.5 last year
higher sales volume
loss 645K down 62%
includes 73k of non-cash options chgs
loss of 13c includes chhg in warrants
no further chgs from series b warrants, all been exercised
9.1 cash and equ
4.1cah in from warrants
329K cash burn excluding,
cash enough for well into 2007
plan to file shelf up to $20MM, up to 10% dilution
60.7 mm SOS
8.4 in warrants
Business:
Heightened profile bringing in warrants. 1Q felt long while waiting for CMS. Broad indication, importance of proprietary, solely from spectral analytic method d/t all the tests being done with their equip, no one can bill that unless using MWTA cpt 93025.
Aenta was first private payor, now with CMS decision, they have all been recontacted with the specifics. Will update on more provate payors.
3 reps per Q adding. buildling to 24 reps next year. Target medicare dense areas. Clinical specialists 1 per 2 sales reps. Unsolicited lead generation increasing d/t medicare decision.
ACC meeting with key presentations, often with standing room only. Paul Shannon presented risk stratification strategy which won first prize. "using ICD for only appropriate cndidates saves $$"
Also a presentation on the first large private population study vs all before on academic settings. "Strong and independant predictor".
Thoughts: 2 priorities
1)private insurance industry
2)growing sales force sensibly
Q&A
1)ray meyers emerging growth equity
detail on plans for reps. How many reps have hired? Review sales territories. 5 reps in 1Q. added 3 clinical, now adding 3 at a time. focusing on large medicare states. double sales force 2007, 24 territories.
Now fla texas california. 2 reps in those states. (vague)Ohio, NC, GA are the first swipe of terrirtoreis to ramp. NY, Boston Michican now. Now, there are 5 reps with one in process. hiring a 6th.
list in penetration the most? 30% or private payor coverage aetna 14.8 MM covered lives across the country. he's listing covered lives in various states.
2)lynn yappie total capital(?)
any change in insurers attitudes about reimbursement from the news about CMS? Too early to tell. Physicians will have a grass roots effect but it's too early to tell if insurers will adopt coverage voluntarily.
3)more reps last year?
yes. we pared down due to low sales. Reps were causing cash burn when they had a difficult time getting sales to Dr's in non-reimburseable testing
might have missed a question
4)don perzont bluegrass
gross marginfrom all of the products?
lead revenue will be heartwave, above 60%, sensors are above 70%
can you give a mix going forward? no too early to tell.
any change in intitial response from dr's on initial contact?
yes- increase in unsolicited leads. Standoffish Dr's from the past are now having the conversation
5)Larry with HMPC
metrics-placement of boxes and utilization of boxes?
now box sale 30K sensors $75. Box sales will drive revenue first.
strategy to place boxes or to sell sensors? Both can be maximized. Clinical specialist will increase util of sensors thru education
cash needs are well under control? yes shelf use is "just in case"
end of call
missed some because I forgot the forward pause revers commands but that's the gist. Any additional or corrections welcome.
yes I know my typing sucks! sorry for typos.
