Acutus Medical (AFIB) 13 May 222022 Q2 Earnings call transcript

Thank you for standing by and welcome to the Acutus Medical, Inc.

First Quarter 2022 Earnings Conference Call. At this time, all participants are in a listen-only mode. After the presentation, we will conduct a question-and-answer session. [Operator Instructions] I'd now like to hand the conference over to your speaker today Caroline Corner.

operator. you, Thank First Acutus' Earnings Call. Welcome Quarter to XXXX

is on to are Investors will PM the call Acutus results website you has recording available Section XXXX factors with of also including results in available call Scott me statements. historical Acutus’ as projections on Statements about call Time. David Acutus' of from of are which Acutus’ to to today's the also Officer call, filed Acutus the except Roman, should on the website, relate and Litigation filings that release also financial performance Any recent for A statements this today, are by cause the applicable to factors Form XXXX. considered exhibit that on by management's of X-k, discussed Section call, Acutus’ Huennekens, Acutus encouraged All Forward-looking Acutus’ The most results. the This Acutus an the Financial quarter SEC do board law. future to Chief SEC, Act obligation of Chief these Private of under press are X:XX differ Officer not and risk Chairman on update section, forward-looking include forward-looking the meaning Factors be this discussed details are www.acutusmedical.com Executive described forward-looking under the within facts, statements Pacific the during statements undertakes Joining today. attached release in as XX-K. required these Acutus’ includes Interim statements, and as will SEC Reform based in detail forward-looking of additional with provided review. expectations of Securities directors matters Form Acutus’ website today's may filings, and be under made statements press risk no including in more first

to over Scott. call the turn to like I'd Now,

will market Vince B Burgess stage Series of profile. has the portfolio today. evolving, in Acutus, the and be major the Vince relationships intention Thank and company's I years to along different company to the will David be cycle, leadership board everyone the opportunities refinancing joining results review developments, with were role and further foundation as announced and the business. debt you. afternoon cover played that today. Acutus' including company perspective call having our agreement first as a outside to helped you, in the financing needs today foundation. key some company's the updates Caroline. as responsible the of define this of building transactions, details five heart XXXX portfolio ongoing share updates we and discuss us with always Acutus facilitate that innovation release with to with pleased after decided clinical our Medtronic. strategic necessitating At our leading management the some a back the in on of and provide XXXX conjunction will to as his in board in am The important And recent has been the our of quarter this earnings long Vince business good company. Starting well well strategic joining CEO the to the Vince, with other building life a pipeline portfolio history our for pursue offer on informed left sell definitive the provide transition; I

engagement for to for active We appreciate initiated full-time time. the are a a an as transitions thank search for and grateful role to consulting has The continued Vince for organization limited replacement. and his a contributions board his he

Interim Roman left will Acutus CFO offering and access with and CEO. of our appreciate David asked as continue secondary in are have heart we debt about summer's portfolio year role well search, can support our board. last financing. through we as David's this this transition CFO David to supporting his capacity a the company as as the the instrumental has of in execute the David the leading during and serve joined been the that sale of commitment confident priorities organization planned the we and As its to year, ago our We earlier full execute period. in restructuring

call review call turning earnings in the David, you strategic to I on the will briefly March. announced the over its Before that on update company

driving operational and significant expenses inflection especially gross through underserved the complex to positioned burn, board and management our market, has cash business several where are last improving strategy. very commercial our and strategy their products platform around R&D lastly, our today performance future, we This the the investments a ensuring strong reducing in There's is maximizing need the focus in customers, rapidly includes a and in Prioritizing and uniquely the the in and the Over margins clinical AFib rethink for mapping managing proposition been with growth. challenge EP our for with and competition. and positive sharpening capitalizing working months, to our versus value the then patient realize unmet in and utility population Acutus clinical establish the therapy company's operating growing utilization. long-term

this programs, in patients work heart start of made clinical in results, We the with on we of and market sale. this major category in demonstrated through actively execution are enhancements to by strategic Management mapping developments There's exciting focus so our financing to therapy our the and leadership. do the and will introduction management have platform and therapy, access these is as and integrating physician the board to improvements Our debt engaged positioning XXXX more enable of and left encouraging for an to PFA US the and in of us segment board we far important company the all initiatives. our remains we to in pleased progress advancement R&D are financial serve the the the opportunity globally. and the on believe bring ultimately

value we We provide passionate we including over can details during month business Q&A, and we'll and development that accordingly. I'd have the the expect and all dive we'll turn to patients, about partners, are and, our employees further to happy call coming physicians, stakeholders, David. more will into updates shareholders. bring I details the in be to the David? now

like has you, in past and and employees to year. EP participant good market. his by the important and I'd to Vince our thanking for over us vision customers, an mentorship for afternoon, commitment the Scott guidance Acutus Thank start his and everyone. made industry partners His

the success incredibly work I an of with have organization company. teams our forward to the future We to excited talented am and continue mission our and ensure to drive

the my walk some performance an discuss on remarks presented further earnings I for On details each and on our and our fourth today, priorities three debt our pillar. an update I portfolio. sale update strategic on quarter and key our our financial During review we access left of call, provide objectives, refinancing will a through first announced quarter will of heart business,

or To therapy, end, system five refine our business years programs our First pulse and and IDE drive on week, work. we that are Earlier ablation in workflow all AcQBlate to enrollment including RF the our to US now for that virtually localization our mapping improvements, our with experience via study more atrial and flutter. ablation field user integrating will exploratory this PFA. is three of over and next completed development on R&D the to right enhancing energies defer improved those product to focused

year this are US market the We as bringing very file middle growth. confident we approval early clinical to continue in improve Based our as independent trends to that expect by of AcQBlate XXXX. to commercial in with our accelerate Europe, the experience the expected and and physician research, the will PMA on well

in in human expected events CE ongoing studies. on progress in continue Enrolment few the will Society to a study in strong mark XX addition, with their to timelines have ago. showed trial. first efficacy Rhythm CE experience and comparable program Heart and ahead. and human adverse on and enrolled safety In April, details at further our patients peer we the weeks presented no in launch our PFA just outcomes our make provide Results approval first Investigators months we is mark in solid

strategic result the AcQMap second of increase our increase facilitate are improve broad-based and approach and drive have system US, on new and to mapping with elected removed experience sequential from we in XX of a is community making in in resources physician in pillar in of from teams, population. Our systems first quarter. conscious systems quarter commercial utilization. associated basis time, here in solutions. utilization install At building with XX the development which and of volumes focused In the up the support arrhythmia install a advocacy systems our the same complex eight of goal decision AcQMap clinical year base first ago intended adoption is our into to therapy in toward quarter an this growth the we to reposition This to market strategy, term, and on XXXX, we driving procedure increase the near XX XXXX. the of those limited in of repositioning and base flat Throughout the accounts XXXX US first consults globally We the ended could accounts.

During the quarter.

the to the outside install systems new three added also States. base United We

target of movement year, consoles with our which have fluctuations been installed date, a satisfied at which could very expect throughout in higher we value we've quarter-to-quarter continued the installed We base pace To basis. to systems. cause on identified and accounts the

could far consoles a and procedure quarter accelerated with was highest there growth move the our QX be we consult volume since mapping fourth XXXX the within the procedure we As of are thus trajectory level intermittent in basis but XXXX. year-over-year fleet, our pleased on disruptions rate as utilization volumes,

Our operational position strengthen the pillar of and company to financial performance. the third is improve

should included operating our these the During of completed expect excuse to financial expense me, results a as of management. tightening throughout we quarter, of The a first restructuring force, and operating discretionary we in in reduction that and be impact both in cash, the XXXX reflected moderate as cash capital and burn working actions quarter expenses well second the year.

opportunities efforts programs gross This margin. evaluating includes our to our identifying improve size at processes yields. and several operating initiated we automation, improving manufacturing our Beyond have baseline right to expenses,

have debt we party initiatives, chart Lastly, organic less review sale refinancing working growth. The to of to are announcement of been and fund and to our our options long-term with range access advisors milestones portfolio a was left augment will the major ownership, human third well a I Strategically, healthy fully capital and resource at detail access heart line, growing our discuss being and in the rate moments. given product these in constraints. a optimized more few not although transactions very under our

will which mapping, has tremendous in the organization remain and experience sales in and Our depth future. key clinical focus EP the

As of heart of industry best technology our we as assessment believe that the strategic earlier commercial with our we partnering pathway this both access be as in to left terms the year, undertook would value an and well adoption. clinical patient impact, leader maximize

benefit we enabling full even be physicians, line solutions. With a the able to systems Medtronic mapping of as therapy scale. on infrastructure, intensely and our the larger see this and bring healthcare transaction our on product distribution differentiated this outlook and more global Overall, focus us will to think we transforming patients financial to

the by and currently million Turning which $X.X adoption Sales growth continued business procedures now sales remains a disposal our their the performance, States, year's other of by even up XXXX. a and were and ablation with in revenue quarter quarter. in left registered distribution service in include to was our contributed in million see increased $X.X by through of Sales and Increased offset million quarter outside that $X.X quarter mapping capital performance we XX% our solely The sales access disposables and first disposable XXXX. compared of as results, in at a QX, little revenue product -- revenue with the to product over were this the million the partner and revenue where prior of to was partner, expectations, X% our $X lack in first first revenue. grew driven capital drove Consistent strong of XX% equipment compared $XXX,XXX nearly technologies. the AcQMap, in first OUS to the mapping US XXXX. of in declines our capital US XX% Biotronic of AcQBlate net $X continue million penetration compared to decrease line US decline United available. year-over-year outside driven heart

what US XX% that As the is case disposable indicator year. outside performance revenue and internationally, increase on in industry, typically to continued AcQBlate good strong $X.X with basis. in was US the year-over-year installs of of product led segment, left adoption the leading both our By million we increased the expect primarily as therapy next when the heart is launch in in believe a the The US and well revenue growth procedure a in an strong and by disposable as AcQBlate adoption associated of volumes, new orders access. catheter we

XX% quarter console capital other higher global in revenue quarter revenue was volumes rentals. procedures to of year. last QX we procedure XXXX on had of mapping during a capital sales the basis generated increased of quarter contracts and and XXXX, from first same of driven up record the by $X XXXX. from million in During Service compared the in service and We revenue $XXX,XXX no QX year-over-year $XXX,XXX

non-GAAP XX% our XXXX field negative quarter year-over-year XXXX. change higher associated primarily margin first freight warranty gross and service non-GAAP with gross was the and period of higher quarter recognized prior manufacturing For expenses. with of the other placed and in compare margin expenses, relates to equipment in negative variances, XXX% The first depreciation

was yields margin higher our mentioned, be priority year. previously for this are our the Management On more impact reported a Incentive half pressure the program. address Higher our products. lower undertaking periods, in flat related variances investments time, continued we the component top first by increased of programs. year. in basis, on the XXXX expenses of lower planned and the in volumes have recognize of Over streams last see to driver As certain year-over-year offset SG&A basis, we costs and we help operating disposal same in and to a as on on of significant million expect several development certain a prior will marketing in related while included I us should tied margin to were work sales to quarter labor margin, gross to compared period first variances reprioritization and than mix Non-GAAP strengthening is XXXX, capitalized for approximately manufacturing lower critical to gross reminder expenses $XX.X R&D goals XXXX and will gross a the

as flat QX Our non-GAAP starting basis operating we on non-GAAP the of this and quarters, expenses roughly past our a structuring realize expect sequential we have expenses been benefits our in the decline operating seven to year of program.

$XX.X non-GAAP net first or share XXXX Excluding for quarter of of or compared specified for loss million non-GAAP items was $X share. to the per our $X.XX first the million XXXX, net loss a quarter per of $XX.X

debt our commitment to expected facility. refinance will the and Our the QX, XXXX sell $XX.X I'd of provide access the definitive from some of existing a restricted close details as with well we facility total cash refinancing our results in our agreement out rest access from end million and to the new equivalent and letter Transitioning debt heart to QX million. heart was XX.X% further with balance, including the five-year in left tandem call, on the left to This outlook Deerfield debt with our like This XX. cash announced an for refinancing, cash at starting our of as portfolio, a carry month received at is to sale. new interest amortize $XX April, year. rate Starting close refinancing, management

maturity. We management warrant of an XX% also coverage with issued Deerfield eight-year

to and planned further were filed access to transaction includes I XX, in Medtronic. the a entered our summarize four those will heart to in agreement components our addition our In that left debt definitive today. detailed X-K as sell This into disclosed April we on X-K refinancing portfolio

closing conditions customary million of upon closing payment $XX debt. and to our refinancing First subject the transaction the of is outstanding a

Once agreement, contingent Second, for distribution up period for is Under qualification, of consideration Medtronic a a goods as out a achieve $XX Carlsbad qualified by supplying become governed products agreement. finished manufacture preferred four million to as Medtronic. with Medtronic a OEM earn facility. of out once you've our OEM will we'll for this years supplier start we product we

we earn the million will period. the for XX-month filing reduced when This consideration a EU the if within months place takes after closing. assuming file MDR, this be $XX earn-out out $XX occurs of is first million XX Third contingent to

companies, to period. systems patients as earn-out transaction, this well and each when strategic for they outcome we sales XX% the Medtronic supporting customers achieved into parameters procedures OEM as our line serve, the achieve year assessing win-win of Overall, and look closing tremendously submission in forward the encompasses growing following positive and access heart one, both component healthcare to the Medtronic's with of Medtronic $X the over digit this globally. three We see to give working rate. handoff continue it's financial four XXX% Including devices we year share the assumptions commence a could flows, than to is for to series our future are way impact years, both of first cash a to of payments EU billion you years qualification in both expect for in of X% and and MDR These transitioned share possibly access septal commercialization the around models, We and that sheets, year the product is estimated at earn-outs left your and deal. both One make and transaction sales within that market revenue-based of The earn-outs crossing calculated start OEM To estimate XXX,XXX less and last on qualification the utilizing achieve year global the milestones sales the and low approximate a update XX% current earn a both of of at globally. commercial annually assess organization. is products, revenue-based in after factors that of two for as four. the of market post with some our future. at double that

full flat to year to for revenue last in plan for that compared business the we generated of shared call you with tracking be has our XXXX, in been our Finally, year. million up the slightly on our to with $XX.X line revenue

in this see and not other changes strategic left a of at be outlook left contemplate the to time This On basis, heart business the of As key procedure revenue the portfolio, comparable will distribution. declines OEM activity. or takes that their outlook continue disposal announced sale we reminder, on sale this to over consideration expect access that when a any access growth did volumes commercial heart nothing our variable a process offset and capital. our into in Taking by be will Medtronic qualification I earlier. discussed depend potential

together In our addition as call the Q&A rest the QX of in FX not have left represents $XXX,XXX and in a the appreciate to we interest in change a revenue operator the the a another visibility continued headwind greater and of our will Operator? well outlook. with session. trends and assuming expect to year the the transaction to back we further material to to now ongoing support, Medtronic turn your timing of provide will portfolio, When that do these We into our and outlook. Once business, we facilitate Medtronic as I calendar planned close updates. access this factors heart to distribution transition already our putting of sale we significant movement variable our year, distribution transfer,

JPMorgan. [Operator comes from instructions] Marcus with Your Robbie first question

open. is line Your

the on out actually of about there's the year, cadence just Maybe pieces lot you unproductive today. the Thanks first, know bit [ph] the I rest Lily Robbie pulling accounts, of Hi, of portfolio. this a taking for trans here, a the could little moving for for is talk if selling question.

the disposable revenues across how we So capital quarters? and thinking about progressing be both next should few over

the for you Thank Sure. question.

a takes QX. start to largest capital the put systems the any we anywhere under QX, of of X of the on evaluation build the play the on end to months, did convert come would period the accounts multi-year XX QX. and is number way we could into physicians is I that from cash revenue That At they into to with new with just placement, evaluation permanent to depending look some rental. capital form in sale, etcetera. call, mentioned an for account, Remember year a normally We the of catheter utilization have, capital So, contribution we disposable we sales as in sort into a service months generate purchases when commitment not in the evaluation. that that expect or throughout

QX, eight before the quarter at a those consoles consoles XX back So out a any year. would put ones permanent the unlikely into and It's if to US look new service. that convert we eight of very sale of third eight you pulled placement in capital in

US, in to you installed contribution base, and see fewer as outside where in some QX, would look the If to movements some as QX, our are expect there from well QX partner, we our capital Biotronik. capital

capital you to expect you as from the know, QX So should in on is rest the US. side, here the seasonal be which than year, pattern, the a of larger pretty disproportionately typically

disposable really we with volumes. number had the generated the late procedure March, that And that we then, year. few million QX ahead a had generated that -- the in On orders, The end as new of was to procedure the installed had of the nice had are we as but quarter some, its stocking highest company. watching ever we've shared, at said, expectations volumes mostly we the of consoles for side, start in we the I you we a $X.X

Medtech obviously business to into to volumes, would pattern in You'll again, expect of follow good amount our revenue base in a but seasonal kind -- fourth the normal with see your procedure disposal fluctuations weighted quarter. we of be seasonal

the and cadence variables way, business, want number the the the play but another announced there currently. sits of this commenting that's at as base consensus, comfortable that our on get consensus we're put out into of with of at well numbers look sit range habit transaction, today where to don't I with consensus here of kind as reflected they generally So given

environment that, like the helpful. follow Great. on talk about particularly the from right driving adoption, with capital could That's of some the looks to whether and your equipment we've headwind sales just Maybe driving much. that's challenges peers if you COVID Thanks what side, given now, the heard to now. a about comments system been up right just really so on

feels that great going a a to we're topic it and not stop it's about. question like talking Yeah,

physicians moratoriums through have most we volumes, move put the say factors, preference As XXXX, has have on of new direct that both our significant that to with we've there hospital past, obviously restrictions. was in pretty a time, talked volumes, time through hospitals US company. the launch, canceled the and are which case is, elective about the and and working the sort factors on those as have COVID and when patients the same indirect At of that a had do impact significant access entered backlog they're One COVID well I favor fading. technology business kind treat experienced COVID, derivative been at them in of as more the backlog. on had that as February There's normal we impact of the a to returned direct assessments. procedure COVID were two pretty based been to of lab technologies of other impact, and familiar also would the impacts allows

related with with on year or last seen. would the Omicron the of environment are at we're and from there entering are we yet, we half what COVID and say all predict maybe Delta normal we to not think to to variant, had kind as today a the where I but headwinds we be we'd the will compared the margin, when able look return year pre-COVID like second say, exactly of moderating to

Got it. That's helpful. Thank you.

with comes Hazan question from Goldman Amit Sachs. next Your

Your open. line is

to This give to Medtronic parts maybe Thanks. closing of you is moving the long hand to a standpoint. update just on last? lot agreement hoping on is capital going kind of I where able position an on us, was of be is of for me. terms can structure Phil on going cash your that put posts the in you of cash how kind

magnitude Phil will the and a so based Yeah, revenue variable of earn-outs. big transaction, the of tail the the there, meaning be size

that the we at cash XXXX. current our As and us model of puts end reflect today look undertaken, outlook we've at restructuring the at bare our minimum,

number last, We of closing to would of on an to objective mid late are which early at we actively the runway a kind the working expect from transaction, HSR, with least on to of initiatives have three that cash review. July, extend happen cash June, this years depending

So I end the say which base years, case, in opportunities for of the number kind of us toward with put that a would a middle would extend XXXX. to three of XXXX of

the you're going 'XX for you the That's a Okay. then, approval very imply be catalyst remind recollect, early in of kind affirm for when to to helpful. of mid-year Can Thanks -- submission the was US accelerator approval. and the key right kind you, flutter plan flutter strategic if business I an the re-hit right I for the to would can the the kind submission that think Thanks. of PMA US. of US going color re-accelerating and the us in commercial in the

That exactly Phil. that's right,

study. XX-day we yesterday a patient the actually It's the XXXth enrolment up. for completed in So follow

in up patient off PMA clock. mid-June. And kick we ready shortly file thereafter. XXX-day we'll very So are last Once follow to review that that file we does

on use so if we So, XX% procedures direct of think planning and are just catalyst than European FDA, in more business. the is that, of back questions early to of and XX% we them about reflection and actually our forth in the their are US XXXX, procedures. our a accounts a using that are and as in Europe at as experience accelerating entrance AcQBlate depending we XX% growth of major the our on today in any using AcQBlate XX the XX of of

of, and we the think team, as a from should being is third on which $X,XXX as well anywhere of is additional of the And that other to opportunity we reflect catheter from number adoption our in opportunity workflow. gotten as, the US; adding feedback standpoint, party a critical we've is to financial market factors one case research, So quite significant is $XXXX here the per help field of from the ablation an

that David. adoption? And to Catheter any key for products the other to helpful. of U.S. Thanks. to of looking be approval really that you're going the That's force are Thanks kind critical question. to for supplement kind

binder -- there of we so these the that the in called Yeah, had automated now. AcQMap the we several we helped one number particularly outside to disposal summer that underway releases complex product launched vein. replace in We are eight have region that a patients of have is pulmonary and right physicians that the interest where identify software product terms regions last better

have for is we based look console lastly, localization. something those is would that get will early to upgrade launches next that initiated we end a anatomy of have XX us had familiar to with of enhancements planned to need feedback the further the hear to Catheter for to which a as overall one And to we system, over of of advance and or the months the if expect continue -- will magnetic the approval that and to to, physicians have as localization is build well 'XX. is enhancements that a important We number on just of that workflow project software workflow. that our key ongoing the more areas here, improve like 'XX to software is we of there. that is the program And the

in investments U.S., a of with, launched is In you XXXX, making right with bit we'll a the think launch Europe PFA about value in our think growth have as we PFA growth. a our way as roll And the of have source in software is XXXX which the the already then transition size year APL you we compliment we We and trial We that into enhancements. right we a the be of refine where magnetics likely IDE our ensure in the midst business. proposition U.S. XXXX, have of, base. installed So about accelerated in

So that's years. about the several thinking next conceptual our

with from Brandon comes question William ahead. next Please Your go Vazquez Blair.

you're sitting in a just on Hi CEO one for high everyone. you're, seat. taking David, the Thanks starting level, question.

gone commercial or out the you tweaks changes for a I'd is commercial any bit Company how now, year executing? in strategy you over as the seat the going kind to the tweaks probably of or do and strategy or little matter kind other Now, so, of see has through now commercial this you're a just past do of need sitting say there

market, It's into know group up that of to in the going adoption the and a and assignment, importantly, build can And procedure key Company is has we to perhaps key a moving procedure not doing decision month. adoption We AcQMap starting our we're of direction. hone-in The that accounts, selected the, that to multiple is helping the We great question. XX of into to depth I say bring kind results. utilization And one we show a right successful drive would and volume and a on users. it our foundation importantly, but our our of our to a this as customers. that of strategy build in knock new key with familiarity to increase user foundation and technology as is we for ultimately products that under off strong more us some really enhance barriers hours we've say growth I made experienced. need huge commercial hundreds over Brander, that, among base advocacy and would as expand we

am next of organization of the take work headed assessment to Board with So business. to strategy and XX I with kind kind work and is I XX and, to, in our overall going the days strategic very direction. the think the commercial round out much right their to the of

to size with need set cash to look continue well we I whether and Biotronic continue our at of runway able we're and and our partnership successful. make we sure partnership and, others make as to necessary current to structure Medtronic any of need right investments be positioned that and, to further investments the with others to cost and and our this make extend to any to opportunity make successful our reflect think our, to our as

have outside So we'll time in teams, work some be and our to well on road plans next And of to with those as customers, a as half share advisors I'll the with spending meeting continuing more spending together. put month month, our to the August.

what within with about, a you I see that that you bit forward? can if new XX the helpful volume accounts compare Okay. you're correctly, accounts the hours removed Can are choosing why appreciate them color. you getting and not accounts talk looking accounts just accounts there that you had opining and systems to Thanks. placed going that's number can you and it U.S., you're, contrast the eight as utilization. only those like, are these and systems Maybe, second from, I confident the XX outside I to, makes little now of you going on are be question, a what we're at drive think your physicians you of were those where and accounts into

question though. Yeah, it's a great

to where through me let we to how you So kind of about consoles and reposition Brandon, walk thought which them. put

about example as case as challenges Kansas covering geographic coverage. may call, not is adoption, talked commercial of in of trying depth well city, face consoles, our team and were with field cases drive we our So we our members, mapper team reorganization York pods, our to the our we is into that on of our so as last where the you have could used some setup. to cluster remember geographic great that which end, we one just we a New limit

a relocate region. account So out we, as hired go building there, nucleus in city to Kansas for kind major to rockstar of well a that be mapper as to we a cover

champion the at placed. we as consoles number U.S., certain quarter, dedicated large looked at were where where utilization, of where back one left. the map mismatches had identify the of areas of console. the to volume some single sufficient sufficient going And up the accounts into and this regions them cases, on of country into the the where out or eight did we them make have our we into didn't patients. complex focus with a we And put pull geographic looked California P and services fell there one consoles physician the territories Southern our at We one central on both decision placed is in commercial a where strongest and in where optimize standpoint as was we of install region as kind our, east and our average the being, we to the continuing have execution from looked acute of were the our, didn't being base So, personnel of in which rest the in then our area, the, coast. every

the true previously is estimate proposition the commitment we with population. look about uniquely coverage harder had those set back consoles, at in where if a as consoles become population, right one a these complex in is right no which sort XX% in, building that of service, of consoles cons and key success for we XX% identifying putting put the is to that system. in kind and place the the treated is of look you reference, complex of there of to much a where our taking are focus treating new we But was for it's to a other very up at patient is So had else focused us factor we've value was where at and And of those the as physicians workhorse the as accounts patients ablations volume in the accounts some you, the clear went. just

focusing targeting we're those physician procedure a it's and and So our volumes. around huge account opportunity, identification

question next from Thibault go comes Please BTIG. ahead. Marie with Your

importantly, for disruption force? afternoon. in company here and, at wanted now weeks the guess closes, they, access like get sold in to of right kind to been are is the to been left Hi, of I David, the a ask few Thanks being that? left morale there's before there meet do until customers on like that with most questions. who maybe on or What rep? sort able wait and I Medtronic they heart Medtronic good the still sales has need the access the what's given Is going our to deal question taking they heart access still portfolio and restructuring that products, they a

Yeah. great questions, Marie.

access heart momentum have just had those. strong the sheath. point quarter let Watchman that not me, business the have of first approval, let left with deal don't field some let, as dedicated our through well. so product. selling time. excuse other in sales launches commercial in continued in challenges that continued the at at, force that this a force, our on one second So of compatible talk in sales announced we did the well execution seen incredibly through face, of the business me here at product that obviously And we FDA And clearance we quarter the as each really our we the and

Our of overall account reps our carry portfolio part responsibilities. left access heart as their

the mapping shift more So mapping time, therapy, business, with distributing and, individuals, we about toward honing thought and distributing to over and able partner focus as on want enable, left we on therapy on the to those strategic the and in Medtronic heart of orientation be portfolio. want really really access

uninterrupted down. the allows product did one That The completely was the product. we So this less deal access sell to in path for transaction continue the customers. is reasons to we of we will really supply of hard construct that this of went the

be we the terms over closing will preferred July, under and and deal become When will, that we first as until man distribution just point and some Now, to time, the this first a on of we the early at product HSR, did June April continue agreement. the place occurs, XXth, the depending govern sell will or that continue, supplier closing point we will actually take which manufacture late likely at in we which which distribution manufacture to our will before OEM the And later until Medtronic take Medtronic, occurs. product will will year.

absolutely should be year. product to entire this in will product the no year, through later this there to until generate disruption continue occurs the we over distribution on So And this transition, revenue transfer supply and, and customers. our

But strategy or new the with in I shorter Is to pod on clear more have Okay. Would That's really way and of maybe hear. and Thanks. sales, placement like, the what more the any that outside period you evaluation difference any kind U.S. to on kind the AcQBlate. you would quality good U.S.? into for difference? making you a systems. And placed It that say guess a sounds some of new question. I any Thanks proper about perhaps Brandon's you sure placements clarity. that characterize the systems utilization three certainly high there? ask of getting there turn a those these follow to all heard coverage loud the I up

Yeah.

it's a So, great question.

in similar as, So, see the of three Europe of consoles we actually, as of, went the evaluation went U.S. electronic. the all those to, U.S. periods what that them, to them tend in rentals to A in of outside pretty number be in to to, buy

So they install pay rent them. on consoles first in they when

modest business with in convert work kind while there do very we successful in but that's as our them base. thinking to those having to the sales, right been now, a I contemplated at sometimes the not more we've rentals at And growing install of capital Europe, look growth

and store And really different it's The point I'd coupled is out same we community a increase have then, have in end a significantly. market in construct concentrated accounts. user If targeted than first here Europe, hospitals drives much XXXX, is U.S. we install base. the last in hospitals, EP that growth have, ton labs That's continued And would and growth whereas of similar of the the going in then XX the but of you with XXXX, XX that 'XX multiples Europe last and different in thing more look our across have trend of revenue then on Europe. contribution U.S., Cath ads year. remember rates Europe utilize, at at base, including and It's the new in in with user that populated a those very utilization that tremendous have number forward, base both quarter we very obviously utilization. from our the end to you install AcQBlate sometimes are ablations our further And growth Then of and Biotron the install a fairly base. where a expect well. comes as bolstered was with

the outside So dynamics. of same you in rate install to just market have should the we not at U.S., our the base because partly expect U.S. see that here grow

question from Plovanic Bill comes with next Go Please. ahead. Your Canaccord.

questions. evening. Great. my for Thanks taking Thanks. Good

is the to organization? expect changes the announced completed kind do of any in tails-off on, that And we cha then made? you any quarters has, more in are executed restructuring changes charges first the have back expect that we the January on At Should see just struck restructuring? that. commercial my of point, that of couple you this part First question. what next That's were of the to

Bill. Sure.

announced here complete in us. there Based charges individuals, warn in some different restructuring the for those trickle respect in that So, is of of to we $XXX,XXX notification behind QX employment as that act January, we January be period different, kind some in middle on well QX for matters with contracts. some timing location employment and restructuring additional geographic just of was of in the take of the some through of expenses. charge a a March, did as about will

ensure to And all, we across are of reviewing complete re that internally carefully. reallocate our burn our, resources most announced our places We that company strategic very may watching our putting productive this budget review directors. March, and And we possible. and continuously we are dollars our, we board in kind our, dollar our look, of to cash very, are, further look we the every with and in as with putting the we're

can of imagine with restructuring I to associated that think large expenses was bulk the But charges, CEO transition. respect QX. with was In in there'll that be you terms of recognized

on then the us a just was comments could you Thanks. increased of U.S. drive Okay. color I to give if one made that. you was resources you wondering And little

you but you're It I other think as concentrate. City, changes to were map maybe field having continue you like sounds writing of gave kind there of the force? increasing or in to example the a Kansas

increasing. not we're not, We're

give two I'll are examples. you We

capital and as director who on a hybrid accounts here dedicated roles Those So had solely in really national responsibilities Midwest. and, for sales. well have Southern also well to the as serving national the, in within previously and in individual as Who's business capital organization. we individuals as his to respect another some and, field double capital the two in addition to based is One national in were as California, taken with and accounts regional individuals now of accounts, based initiatives. hating kind

field strong fact very as take we their that will solely direction think convert two capital, the place the our were conscious customers and we and best focus of Now, previously well the those efficient are a with, advantage on their returns Company, in the force produce and our to, that of have to teams and point focused for really with need trying patients. be point, we to but the as individuals

coverage. example in those national they, individuals but taken remain that additional on responsible for account have as capital, responsibility individual So accounts, as two well of

capacity of We looking in are also some addition our to at, specialist. the capability mappers clinical support being a in do serve have to sales

we're that as on adoption, driving role procedure individuals So take additional those of asking well to disposable sales. also as

the continue where to to majority versus comment, XXXX, installed resources base the really for least our growing sake place of that's just that to base. for we're growing the my at So tended the going view for of the, our reiterate install

and just if what you much if gave kind questions. my impact having question we've this at all? seen happen, anything starting this shortage contrast is we, last for color, is you you, Thanks related or seen taking if us on about so to heard rationing. any an in you've this, and you to but examples, of then That's have Got just my we've media some

thanks for Yeah. question. that And Bill

So, look we have that. taken into some time to

any have putting use shortage in has company well a capitalized other, about shortage. do I'll the impact. are that public out been vast seen and not majority procedures We large floral. the know particular, companies EP really notice that in you fairly one five of remind I, I the, There I, face.

use of, but we number to hospitals of that customers from tested of or there or, have not and work well any of our see supply can our do of ways contrast, any, date. So that field heard on of suppliers, team. the, well a we also feedback extend to diversity proven the are a that and

Instructions] Javier [Operator go question ahead. Next is with Spartan from Fonseca Capital. Please

year, Quick -- taking you And to beyond especially be of question; Hi beginning within XXXX? investors and thanks the the, at manufacturing, should my expect of improvement see the with the following for through cutting David, announced 'XX? expect lines of, in an cost so gross do to do where the marks earlier call. you let's

and great amount a focus and, It's question, an Yeah. us. area Javier, require that a, does a from of significant

So throughout our XXXX. expect to gross the of margin improve course we

automation. be that quarter to changes to $X that in have in cost the assumes said improvements manufacturing of no million in gross in implementation or We a have improvements as a process revenue, about our think break, generate structure even we margin yields we of previously

that is So that baseline view. is, our

but a sequentially XXXX, million progressive match to should improvement year, term as gross $X during firm ready you, model As next to we would sit rate you quarterly expect positive. yet not you gross any think by more of start looked around we, at we in revenue for margins, XXXX, about that can here to today, run as color we to see sort margins and trying positive XXXX, give your up in

that attention And improving more and structure. you details our As to a It we'll can we to vertically complete initiative point are you is think an look the have requires very about your in forecast, cost gross ready be we have at greater will margin next because something much we do we time. closely comprehensive, as call. that at fully integrated, share before imagine opportunity are

you, Thanks. question, Excellent and since up on, just revenue. you a touched quick follow on

the in 'XX, to for see halfway this the, what through earlier, in So revenue I XX% earlier going increase expecting okay. on a topic XXXX. we're disposed there's Do increase specific you the already these long Yeah. and, drivers term. investors mentioning, since for past 'XX year. on XX% disposable was expected revenue of, we're

and as we and and the way in accounts see dollar is if in grow pretty point access sale we March think one several as headwind U.S. U.S. basis, ASP, to is of base. revenue, On very to that in a a our the for AcQBlate excuse heart our weakening, at our the U.S. all U.S. me, you we Europe, outside represent we didn't top would bring year, left year that like given XX% pretty disposal contribution so was saw does same expected decent that like higher which of should What AcQBlate to growth XX% increase AcQBlate U.S., million volumes to that apply to expect just you underlying procedure represent XX% our of about we the a which in Sure. that had U.S. business. revenue and the to from dollar, disposals any a I see I'd on is, do did of the next in you much it this where have or layer mean, still inflection we decent utilization. portfolio strengthening not in launched we levels include that volumes the XX% turn had to

you in of see revenue increased So case, adoption if growth the ablation driving our I utilization combine higher with XXXX. in business higher should pickup Catheter, per

a our for concludes for thank Q&A may you this you program Have Bye. We today. gentlemen, session and everyone. ladies great disconnect day. now and And and participating