Apyx Medical Corporation (NASDAQ:APYX) Q2 2023 Earnings Call Transcript

Charles Goodwin: Yeah. The initial response that we’ve seen for the Apyx One launch has been positive and it’s been an important driver for us so far in Q2 of ’23. The feedback has been highlighted by the advanced features, which is the touchscreen user phase, the presets for bodies and different procedures and the cloud connectivity functionality, which has really proven to be very important because a lot of the doctors were having their staff record this stuff and the amount of gas and the amount of usage and the amount of jewels, they were recording all this stuff manually on the patient’s chart and now they can just upload this and the generator will do that automatically. And so that’s been a really nice feature. And we’re really happy with the way it’s been resonating with the surgeons and we expect it to remain an important contributor for us for the second half of the year too.

Matthew Hewitt: Got it. And then shifting a little bit here. But regarding the international handpiece sales, I understand it’s a timing related issue. If I heard you correctly, it sounds like it’s more back half. So does that imply we shouldn’t anticipate that bouncing back here in Q3, it’s going to take a little bit longer or maybe have you received some orders already here in Q3 from international, these specific international distributors? Any additional color there would be helpful.

Charles Goodwin: Yeah. Look, I think the important thing to know about that is, it was just some orders, some handpieces. It wasn’t one distributor and we expect those orders in the back half of this year. And I think that’s all the detail that we’re going to give on that. And that’s why reaffirmed our guidance for the back half of the year because we’re confident that we’re going to get those in the back half of the year.

Matthew Hewitt: Got it. All right. Thank you.

Charles Goodwin: Thank you.

Operator: Thank you. Our next question comes from the line of George Sellers with Stephens. Please proceed with your question.

George Sellers: Hey. Good afternoon and thanks for taking the question. Maybe to start with the quarter. I’m just curious if you could give some detail on how utilization trended with liposuction versus standalone? And if that trend changed following the FDA clearance?

Charles Goodwin: Yeah. I don’t know that I can speak to that with any trend data or anything else. I mean remember that the FDA safety communication was just updated in the middle of May and we basically had six weeks of time in the quarter where that was behind us. And so in terms of monthly trends or specificity there, we did call out a notable uptick in the U.S. adoption after the safety communication (ph) in May. So the only thing that I can tell you is that after that was out there that we started to have a much greater rate of adoption than we did before or after that. And so that obviously has us very encouraged for the rest of the year.

George Sellers: Okay. That’s helpful. And maybe switching to guidance here. You obviously reiterated your revenue guidance, but raised the gross profit expectations. I’m just curious, if you could give a little bit more detail. Is there some change maybe in the contribution you’re expecting from international versus the U.S. or if you could just give a little bit more detail? Maybe that would be helpful.

Charles Goodwin: Yeah. So I mean, really, it’s primarily driven by mix assumptions and it is favorable mix within our Advanced Energy segment by geography and by product.

George Sellers: Okay. Thank you for the time. I’ll leave it there.

Charles Goodwin: Thank you.

Operator: Thank you. [Operator Instructions] Our next question comes from the line of Frank Takkinen with Lake Street Capital Markets. Please proceed with your question.