Avinger Inc (AVGR)

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Avinger Reports Second Quarter 2020 Financial Results
Stocks mentioned: AVGR


REDWOOD CITY, CA / ACCESSWIRE / July 30, 2020 / Avinger, Inc. (NASDAQ:AVGR), a commercial-stage medical device company marketing the first and only intravascular image-guided, catheter-based system for diagnosis and treatment of patients with Peripheral Artery Disease (PAD), today reported results for the second quarter ended June 30, 2020.

Second Quarter and Recent Highlights

Reported total revenue of $1.5 million, a decrease from the prior year and previous quarter due to the effects of the COVID-19 pandemic
Reduced operating expenses sequentially by $2.0 million, or 34%, through both temporary and permanent cost reductions implemented as part of Avinger's COVID-19 response; realized a net loss improvement of $1.9 million, or 32%, compared to the first quarter
Launched 2 new customer accounts late in the second quarter and have already launched 5 new accounts in the third quarter, as business activity improves with the reinstatement of elective procedures in many communities
Filed a 510(K) submission for Ocelaris, Avinger's next generation CTO device
Progressed development of the next generation L300 imaging console for future 510(k) submission
Strengthened the balance sheet through financing activities that increased cash to $16.6 million at June 30, 2020

Jeff Soinski, Avinger's President and CEO, commented, "The Avinger team pulled together to deliver positive results during a challenging second quarter. Following a sharp decline in treatment activity during March and April, business increased steadily throughout May and June, as more states began to loosen restrictions on elective procedures. Our cost controls in response to the pandemic were very effective, driving a $2 million reduction in operating expenses compared to the first quarter and allowing us to significantly improve our bottom-line performance. We also strengthened our balance sheet through our financing activities in the second quarter, ending the quarter with $16.6 million in cash.

"In addition, we continued to advance a number of important strategic programs to drive future growth. In May, we submitted a 510(k) application for U.S. pre-marketing clearance of our Ocelaris image-guided CTO crossing catheter. We also made significant progress in the development of our new L300 imaging console, which will provide our proprietary imaging capabilities in a much smaller form factor and at a lower cost. On the clinical front, completion of our INSIGHT IDE study remains a priority as it supports an anticipated future 510(k) filing for an expanded indication of plaque removal from in-stent restenosis (ISR) with the Pantheris catheter," said Soinski.

Second Quarter 2020 Financial Results

Total revenue was $1.5 million for the second quarter of 2020, a decrease of 37% from the second quarter of 2019 and 35% from the first quarter of 2020, each of which had approximately $2.3 million in revenues. The decline in revenue reflected the effects of the COVID-19 pandemic, which began to impact our business in March 2020.

Gross margin for the second quarter of 2020 was 24%, compared to 31% in the second quarter of 2019 and 22% in the first quarter of 2020. Operating expenses for the second quarter of 2020 were $4.0 million, compared with $5.4 million in the second quarter of 2019 and $6.0 million in the first quarter of 2020. The $2.0 million sequential decline in operating expenses reflected both temporary and permanent cost savings from the company's COVID-19 response plan. Operating expenses are expected to increase in the third quarter of 2020.

Net loss and comprehensive loss for the second quarter of 2020 were $4.0 million, compared with $4.7 million in the second quarter of 2019 and $5.9 million in the first quarter of 2020.

Adjusted EBITDA, as defined under non-GAAP measures in this press release, of $2.9 million improved by 26% compared with a loss of $4.0 million in the second quarter of 2019, and improved by 39% sequentially compared with a loss of $4.8 million in the first quarter of 2020., and reflected the lowest adjusted EBITDA loss for Avinger.

For more information regarding non-GAAP financial measures discussed in this press release, please see "Non-GAAP Financial Measures" below, as well as the reconciliation of GAAP to non-GAAP measures provided in the tables below.

Balance Sheet

Cash and cash equivalents totaled $16.6 million as of June 30, 2020, compared with $9.9 million as of March 31, 2020. In the second quarter of 2020, Avinger announced approximately $9.0 million in gross proceeds from underwritten public offerings and the receipt of $2.3 million pursuant to the Paycheck Protection Program. In July 2020, Avinger received $0.8 million in gross proceeds from the closing of the over-allotment option.

Conference Call

Avinger will hold a conference call today, July 30, 2020 at 4:30pm ET to discuss its second quarter 2020 financial results.

Individuals interested in listening to the conference call may do so by dialing [phone]. To listen to a live webcast, please visit http://www.avinger.com and select Investor Relations. A webcast replay of the call will be available on Avinger's website following completion of the call at www.avinger.com.