Apyx Medical Corporation (NASDAQ:APYX) is an advanced energy technology company specializing in Helium Plasma Technology products, marketed as Renuvion in the cosmetic surgery market and J-Plasma in the hospital surgical market. The company faces challenges in the current market environment but remains focused on driving adoption of its Renuvion technology while positioning for future success.
Financials
In fiscal year 2023, Apyx Medical reported annual revenue of $52.3 million and a net loss of $18.7 million. The company's annual operating cash flow was -$5.2 million, and its annual free cash flow was -$5.8 million.
For the first quarter of fiscal year 2024, Apyx Medical reported: - Total revenue of $10.2 million, a 15.6% decrease year-over-year - Advanced Energy product sales declined 23.1% - OEM product sales increased 13.8% - Gross profit margin of 58.1%, compared to 62.4% in the prior year
Revenue Breakdown
The decrease in Advanced Energy sales was largely due to a slowdown in generator sales, which declined nearly 40% year-over-year. This performance aligned with the company's expectations of continued softness in the cosmetic surgery capital equipment market.
Internationally, Apyx Medical saw strength in Europe, the Middle East, Africa, and the Asia-Pacific region. International sales represented 31.9% of total revenues for Q1 2024, compared to 26.9% in the same period of the prior year.
Recent Developments
Apyx Medical entered 2024 with: - A clinical portfolio of over 90 published papers - Two new products: Renuvion Apyx One generator and micro handpiece - Two additional 510(k) clearances for specific clinical indications
The company continues to focus on driving awareness and educating potential new customers about its enhanced Renuvion offering through various initiatives.
Outlook
Apyx Medical has reaffirmed its fiscal year 2024 guidance: - Total revenue: $49.7 million to $52.9 million - Advanced Energy revenue: $41.6 million to $44.6 million - OEM revenue: $8.1 million to $8.3 million - Net loss attributable to stockholders: $26.5 million to $24.3 million - Gross margins: approximately 61%
Liquidity
As of March 31, 2024, Apyx Medical had $37.3 million in cash and cash equivalents. The company expects cash used in operations in 2024 to be approximately $19 million, compared to normalized cash used in operations of approximately $13 million in 2023, excluding a one-time tax benefit.
Conclusion
Despite current challenges, Apyx Medical remains focused on capitalizing on its multibillion-dollar addressable market opportunity and favorable long-term industry trends. The company believes it is well-positioned to benefit from these trends and drive strong, sustained growth and value creation once the market environment improves.