Avinger Reports Third Quarter 2024 Results
Avinger (AVGR) reported Q3 2024 revenue of $1.7 million with improved gross margin of 26%. The company implemented cost reductions, reducing headcount by 24% to focus on higher volume accounts and coronary product development. Operating expenses decreased to $4.1 million, leading to a 15% improvement in net loss to $3.7 million. The company filed an IDE pre-submission package with FDA for its coronary CTO-crossing system and launched the Pantheris LV device. Clinical data from IMAGE-BTK study showed strong results with 100% freedom from major adverse events at 30 days.
Avinger (AVGR) ha riportato un fatturato per il terzo trimestre del 2024 di 1,7 milioni di dollari, con un miglioramento del margine lordo del 26%. L'azienda ha attuato riduzioni dei costi, riducendo il personale del 24% per concentrarsi su conti ad alto volume e sullo sviluppo di prodotti coronarici. Le spese operative sono diminuite a 4,1 milioni di dollari, portando a un miglioramento del 15% nella perdita netta, che si attesta a 3,7 milioni di dollari. L'azienda ha presentato un pacchetto di pre-sottomissione IDE alla FDA per il suo sistema di attraversamento CTO coronarico e ha lanciato il dispositivo Pantheris LV. I dati clinici dello studio IMAGE-BTK hanno mostrato risultati positivi, con il 100% di libertà da eventi avversi maggiori a 30 giorni.
Avinger (AVGR) reportó ingresos del tercer trimestre de 2024 de 1.7 millones de dólares, con un margen bruto mejorado del 26%. La empresa implementó reducciones de costos, disminuyendo el personal en un 24% para centrarse en cuentas de mayor volumen y en el desarrollo de productos coronarios. Los gastos operativos se redujeron a 4.1 millones de dólares, lo que llevó a una mejora del 15% en la pérdida neta, que se sitúa en 3.7 millones de dólares. La empresa presentó un paquete de pre-sumisión IDE a la FDA para su sistema de cruce CTO coronario y lanzó el dispositivo Pantheris LV. Los datos clínicos del estudio IMAGE-BTK mostraron resultados sólidos, con un 100% de libertad de eventos adversos mayores a los 30 días.
Avinger (AVGR)는 2024년 3분기 수익이 170만 달러로, 총 이익률이 26%로 개선되었음을 보고했습니다. 회사는 비용 절감을 실행하고 인력을 24% 줄여 더 높은 거래량의 계좌와 관상 동맥 제품 개발에 집중하고 있습니다. 운영 비용은 410만 달러로 감소하였으며, 그 결과 순 손실이 370만 달러로 15% 개선되었습니다. 회사는 관상 동맥 CTO 교차 시스템을 위한 IDE 사전 제출 패키지를 FDA에 제출하였고, Pantheris LV 장치를 출시했습니다. IMAGE-BTK 연구의 임상 데이터는 30일 기준으로 주요 부작용이 100% 발생하지 않았다는 강력한 결과를 보여주었습니다.
Avinger (AVGR) a rapporté un chiffre d'affaires de 1,7 million de dollars pour le troisième trimestre 2024, avec une amélioration du taux de marge brute de 26%. L'entreprise a mis en œuvre des réductions de coûts, diminuant son effectif de 24% pour se concentrer sur des comptes à gros volume et le développement de produits coronaires. Les dépenses d'exploitation ont diminué à 4,1 millions de dollars, ce qui a conduit à une amélioration de 15% de la perte nette qui s'élève à 3,7 millions de dollars. L'entreprise a soumis un paquet de pré-soumission IDE à la FDA pour son système de franchissement CTO coronarien et a lancé l'appareil Pantheris LV. Les données cliniques de l'étude IMAGE-BTK ont montré des résultats solides, avec 100% de liberté d'événements indésirables majeurs après 30 jours.
Avinger (AVGR) meldete für das dritte Quartal 2024 einen Umsatz von 1,7 Millionen Dollar mit einem verbesserten Bruttomargenanteil von 26%. Das Unternehmen hat Kostensenkungsmaßnahmen umgesetzt und die Mitarbeiterzahl um 24% reduziert, um sich auf Accounts mit höherem Volumen und die Entwicklung von koronären Produkten zu konzentrieren. Die Betriebskosten sanken auf 4,1 Millionen Dollar, was zu einer Verbesserung des Nettoverlusts um 15% auf 3,7 Millionen Dollar führte. Das Unternehmen reichte ein IDE-Vorab-Einreichungspaket bei der FDA für sein koronäres CTO-Übertragungssystem ein und brachte das Gerät Pantheris LV auf den Markt. Klinische Daten aus der IMAGE-BTK-Studie zeigten starke Ergebnisse mit 100% Freiheit von schweren unerwünschten Ereignissen nach 30 Tagen.
- Gross margin increased to 26% from 20% in Q2 2024
- 15% improvement in net loss to $3.7 million
- Operating expenses reduced to $4.1 million from $4.5 million in Q2
- 12% improvement in adjusted EBITDA compared to Q2 2024
- Strong clinical data with 100% freedom from major adverse events at 30 days
- Revenue declined to $1.7 million from $1.8 million in Q2 2024
- 24% workforce reduction implemented
- Continued net losses despite improvements
- Cash position of $5.9 million as of September 30, 2024
Insights
The Q3 results reveal a mixed financial picture with some concerning metrics but also signs of operational improvement. Revenue remained flat at
The net loss improved to
The clinical data from the IMAGE-BTK study for Pantheris SV shows promising results with
The FDA pre-submission for IDE and planned clinical trials at multiple sites indicate progress in the regulatory pathway. The partnership with Zylox-Tonbridge and their receipt of Innovative Medical Device designation in China could accelerate market access in a region with 50 million PAD patients, though manufacturing scale-up timeline extending to mid-2025 suggests a lengthy path to revenue realization.
Lower Operating Cost Profile Drives Improved Productivity, Increased Gross Margin
REDWOOD CITY, CA / ACCESSWIRE / November 7, 2024 / Avinger, Inc. (Nasdaq:AVGR), a commercial-stage medical device company developing and marketing the first and only intravascular image-guided, catheter-based systems for diagnosis and treatment of vascular disease, today reported results for the third quarter ended September 30, 2024.
Third Quarter and Recent Highlights
Reported third quarter 2024 revenue of
$1.7 million , sequentially increased gross margin to26% .Implemented cost reduction program designed to streamline operating costs of the peripheral business and increase focus on coronary product development.
Operating cost savings and gross margin expansion drove
15% improvement in third quarter net loss and comprehensive loss and12% improvement in adjusted EBITDA compared to second quarter 2024.Filed Investigational Device Exemption (IDE) pre-submission package with the U.S. FDA in September for the company's proprietary image-guided coronary CTO-crossing system, following successful completion of Phase III verification and validation testing. Submission of the IDE application is anticipated in fourth quarter 2024, pending completion of the pre-submission process.
Initiated full commercial launch of new Pantheris LV (large vessel) image-guided atherectomy device for use in the peripheral arteries.
Appointed Thomas Davis, MD, FACC, a highly experienced interventional cardiologist and pre-eminent leader in the treatment of vascular disease, as Chief Medical Officer.
Released best-in-class clinical data from IMAGE-BTK post-market study, evaluating Pantheris SV (small vessel) for the treatment of advanced disease below-the-knee, in a physician-led webinar. Updated interim data shows
100% freedom from major adverse events at 30 days, and97% freedom from target lesion revascularization, a measure of restenosis, and94% primary patency as assessed by duplex ultrasound at 12-months.Continued to support Zylox-Tonbridge's efforts to complete regulatory filings for peripheral catheters and Lightbox 3 imaging console in China prior to the end of this year, with registration clearance anticipated in 2025. Supporting Zylox-Tonbridge's professional education efforts in the China market and their development of manufacturing capabilities for Avinger products, with full manufacturing scale-up anticipated in 2025.
"In the third quarter, we began to see the impact of recent initiatives to streamline costs, enhance operational efficiency, and intensify our focus on developing our coronary platform," stated Jeff Soinski, Avinger's President and CEO. "Operating expenses have decreased significantly over the past quarter, while revenue has remained in line despite a leaner commercial team, and gross margins have improved for the second consecutive quarter.
"Crossing chronic total occlusions (CTOs) in coronary arteries remains a major challenge for physicians, often involving complex, time-consuming and costly procedures with uncertain outcomes. Our OCT image-guided approach aims to provide superior, streamlined, and more predictable clinical results, positioning Avinger to transform this market for both physicians and patients. Unlike the peripheral CTO space, our coronary solution is uniquely designed to leverage established reimbursement codes for both coronary CTO-crossing and OCT diagnostic imaging, which is expected to accelerate adoption of this innovative technology. In September, we filed a pre-submission package with the FDA for our coronary clinical study and anticipate submitting our IDE application in the fourth quarter, pending completion of the pre-submission process. Meanwhile, we are actively engaging with prospective clinical sites-five of which are already identified-and aim to expand to 10 or more sites before study initiation.
"We are excited about the strides Zylox is making in expanding access to our proprietary image-guided products for the estimated 50 million people in China affected by peripheral artery disease," Soinski continued. "Zylox recently received the prestigious Innovative Medical Device review designation for Pantheris in China, akin to the Breakthrough Device designation in the U.S. This recognition enables priority regulatory review and underscores the impact of our technology. In the meantime, we are supporting Zylox's initial pre-market promotion activities. Our products were presented for the first time at CEC (China Endovascular Course), the leading and most influential clinical conference for Chinese endovascular surgeons, with many physicians already developing a strong interest in our image-guided technology. We anticipate Zylox will complete its full manufacturing scale-up for our devices by mid-2025, which is expected to enhance production efficiency and drive further cost reductions."
Third Quarter 2024 Financial Results
Total revenue was
Gross margin for the third quarter of 2024 increased to
In June 2024, the Company initiated a cost reduction program, reducing headcount by approximately
Net loss and comprehensive loss for the third quarter of 2024 improved to
Adjusted EBITDA, as defined under non-GAAP financial measures in this press release, improved to a loss of
Cash and cash equivalents totaled
Conference Call
Avinger will hold a conference call today, November 7, 2024, at 4:30pm ET to discuss its third quarter 2024 financial results.
To listen to a live webcast, please visit http://www.avinger.com and select Investor Relations. To join the call by telephone, please dial +1-973-528-0011 and use passcode 442577. A webcast replay of the call will be available on Avinger's website following completion of the call at www.avinger.com.
About Avinger, Inc.
Avinger is a commercial-stage medical device company that designs and develops the first image-guided, catheter-based system for the diagnosis and treatment of patients with vascular disease in the peripheral and coronary arteries. Avinger is dedicated to radically changing the way vascular disease is treated through its proprietary optical coherence tomography (OCT) image-guided platform, which currently consists of the Lightbox series of imaging consoles, the Ocelot and Tigereye® family of chronic total occlusion (CTO) catheters, and the Pantheris® family of atherectomy devices for the treatment of peripheral artery disease (PAD), estimated to affect more than 200 million people worldwide. Avinger is developing its first product application for the treatment of coronary artery disease (CAD), an image-guided system for CTO-crossing in the coronary arteries, which provides the opportunity to redefine a large and underserved market. Avinger is based in Redwood City, California. For more information, please visit www.avinger.com.
Follow Avinger on X and Facebook.
Forward-Looking Statements
This news release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934 and the Private Securities Litigation Reform Act of 1995. These forward-looking statements include statements regarding our future performance, patient and physician benefits of our products, the impacts of our products on the treatment of vascular disease, our ability to successfully develop new products, our ability to access established reimbursement codes for both coronary CTO-crossing and OCT-diagnostic imaging, the expectation that coronary reimbursement will accelerate adoption, anticipated timing of the IDE submission for the coronary CTO study, anticipated timing of the regulatory approval process in China and our expectation that Zylox will complete its full manufacturing scale-up for our devices by mid-2025. Such statements are based on current assumptions that involve risks and uncertainties that could cause actual outcomes and results to differ materially. These risks and uncertainties, many of which are beyond our control, include our dependency on a limited number of products; the resource requirements related to Pantheris, Tigereye and our Lightbox imaging console; the outcome of clinical trial results; the adoption of our products by physicians; our ability to obtain regulatory approvals for our products; as well as the other risks described in the section entitled "Risk Factors" and elsewhere in our Annual Report on Form 10-K filed with the Securities and Exchange Commission on March 20, 2024, and Quarterly Reports on Form 10-Q. These forward-looking statements speak only as of the date hereof and should not be unduly relied upon. Avinger disclaims any obligation to update these forward- looking statements.
Non-GAAP Financial Measures
Avinger has provided in this press release financial information that has not been prepared in accordance with generally accepted accounting principles in the United States (GAAP). The Company uses these non-GAAP financial measures internally in analyzing its financial results and believes that the use of these non-GAAP financial measures is useful to investors as an additional tool to evaluate ongoing operating results and trends and in comparing the Company's financial results with other companies in its industry, many of which present similar non-GAAP financial measures.
The presentation of these non-GAAP financial measures should not be considered in isolation or as a substitute for comparable GAAP financial measures, and should be read only in conjunction with the Company's financial statements prepared in accordance with GAAP. A reconciliation of the Company's non-GAAP financial measures to their most directly comparable GAAP measures has been provided in the financial statement tables included in this press release, and investors are encouraged to review these reconciliations.
Adjusted EBITDA. Avinger defines adjusted EBITDA as net loss and comprehensive loss plus interest expense, net, plus other income, net, plus stock-based compensation expense plus certain inventory charges plus certain depreciation and amortization expense. Investors are cautioned that there are a number of limitations associated with the use of non-GAAP financial measures as analytical tools. Furthermore, these non-GAAP financial measures are not based on any standardized methodology prescribed by GAAP, and the components that Avinger excludes in its calculation of non-GAAP financial measures may differ from the components that its peer companies exclude when they report their non-GAAP results of operations. Avinger compensates for these limitations by providing specific information regarding the GAAP amounts excluded from these non-GAAP financial measures. In the future, the Company may also exclude other non-recurring expenses and other expenses that do not reflect the Company's core business operating results.
Investor Contact:
Matt Kreps
Darrow Associates Investor Relations
(214) 597-8200
mkreps@darrowir.com
Public Relations Contact:
Phil Preuss
Chief Commercial Officer
Avinger, Inc.
(650) 241-7942
pr@avinger.com
Statements of Operations and Comprehensive Loss
(in thousands, except per share amounts) (unaudited)
| (Unaudited) |
|
|
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|
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| ||||||||||||
| For the Three Months Ended |
|
| Nine Months Ended |
| |||||||||||||||
| September 30, |
|
| June 30, |
|
| September 30, |
|
| September 30, |
|
| September 30, |
| ||||||
| 2024 |
|
| 2024 |
|
| 2023 |
|
| 2024 |
|
| 2023 |
| ||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||
Revenues |
| $ | 1,650 |
|
| $ | 1,847 |
|
| $ | 1,817 |
|
| $ | 5,356 |
|
| $ | 5,746 |
|
Cost of revenues |
|
| 1,224 |
|
|
| 1,469 |
|
|
| 1,429 |
|
|
| 4,209 |
|
|
| 4,117 |
|
Gross profit |
|
| 426 |
|
|
| 378 |
|
|
| 388 |
|
|
| 1,147 |
|
|
| 1,629 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
Operating expenses |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Research and development |
|
| 1,086 |
|
|
| 904 |
|
|
| 1,044 |
|
|
| 3,052 |
|
|
| 3,388 |
|
Selling, general and administrative |
|
| 3,009 |
|
|
| 3,601 |
|
|
| 3,377 |
|
|
| 10,980 |
|
|
| 10,261 |
|
Total operating expenses |
|
| 4,095 |
|
|
| 4,505 |
|
|
| 4,421 |
|
|
| 14,032 |
|
|
| 13,649 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
Loss from operations |
|
| (3,669 | ) |
|
| (4,127 | ) |
|
| (4,033 | ) |
|
| (12,885 | ) |
|
| (12,020 | ) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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|
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
Interest expense, net |
|
| (48 | ) |
|
| (234 | ) |
|
| (455 | ) |
|
| (698 | ) |
|
| (1,292 | ) |
Other income (expense), net |
|
| 11 |
|
|
| (1 | ) |
|
| 12 |
|
|
| (2 | ) |
|
| 16 |
|
Net loss and comprehensive loss |
|
| (3,706 | ) |
|
| (4,362 | ) |
|
| (4,476 | ) |
|
| (13,585 | ) |
|
| (13,296 | ) |
Accretion of preferred stock dividends |
|
| (349 | ) |
|
| (238 | ) |
|
| 2,436 |
|
|
| (652 | ) |
|
| - |
|
Gain on exchange of Series A for Series A-1 convertible preferred stock |
|
| - |
|
|
| - |
|
|
| - |
|
|
| 1,908 |
|
|
| - |
|
Net loss applicable to common stockholders |
| $ | (4,055 | ) |
| $ | (4,600 | ) |
| $ | (2,040 | ) |
| $ | (12,329 | ) |
| $ | (13,296 | ) |
|
|
|
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| |
|
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| |
Net loss per share attributable to common stockholders |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
basic and diluted |
| $ | (1.82 | ) |
| $ | (2.82 | ) |
| $ | (2.92 | ) |
| $ | (6.93 | ) |
| $ | (21.48 | ) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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| |
Weighted average common shares used to compute |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
net loss per share, basic and diluted |
|
| 2,224 |
|
|
| 1,634 |
|
|
| 698 |
|
|
| 1,780 |
|
|
| 619 |
|
All share and per share data reflect the impact of the reverse stock split effective September 12, 2023.
Reconciliation of Adjusted EBITDA to Net Loss and Comprehensive Loss
(in thousands) (unaudited)
|
| (unaudited) |
|
|
|
|
|
|
| |||||||||||
|
| For the Three Months Ended |
|
| Nine Months Ended |
| ||||||||||||||
|
| September 30, |
|
| June 30, |
|
| September 30, |
|
| September 30, |
|
| September 30, |
| |||||
|
| 2024 |
|
| 2024 |
|
| 2023 |
|
| 2024 |
|
| 2023 |
| |||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||
Net loss and comprehensive loss |
| $ | (3,706 | ) |
| $ | (4,362 | ) |
| $ | (4,476 | ) |
| $ | (13,585 | ) |
| $ | (13,296 | ) |
Add: Interest expense, net |
|
| 48 |
|
|
| 234 |
|
|
| 455 |
|
|
| 698 |
|
|
| 1,292 |
|
Add: Other (income) expense, net (1) |
|
| (11 | ) |
|
| 1 |
|
|
| (12 | ) |
|
| 2 |
|
|
| (16 | ) |
Add: Stock-based compensation |
|
| 222 |
|
|
| 207 |
|
|
| 219 |
|
|
| 1,525 |
|
|
| 703 |
|
Add: Certain depreciation and amortization charges |
|
| 76 |
|
|
| 86 |
|
|
| 74 |
|
|
| 245 |
|
|
| 214 |
|
Adjusted EBITDA |
| $ | (3,371 | ) |
| $ | (3,834 | ) |
| $ | (3,740 | ) |
| $ | (11,115 | ) |
| $ | (11,103 | ) |
(1) Other (income) expense, net primarily represents other miscellaneous income and expenses. Since these charges are non-operational, unusual or infrequent in nature, they are excluded accordingly.
Balance Sheet
(in thousands, except per share amounts) (unaudited)
| September 30, |
|
| December 31, |
| |||
Assets |
| 2024 |
|
| 2023 |
| ||
Current assets: |
|
|
|
|
|
| ||
Cash and cash equivalents |
| $ | 5,901 |
|
| $ | 5,275 |
|
Accounts receivable, net of allowance for doubtful accounts |
|
|
|
|
|
|
|
|
of |
|
| 877 |
|
|
| 1,014 |
|
Inventories |
|
| 3,759 |
|
|
| 5,298 |
|
Prepaid expenses and other current assets |
|
| 947 |
|
|
| 575 |
|
Total current assets |
|
| 11,484 |
|
|
| 12,162 |
|
|
|
|
|
|
|
|
| |
Right of use asset |
|
| 1,427 |
|
|
| 1,102 |
|
Property and equipment, net |
|
| 466 |
|
|
| 487 |
|
Other assets |
|
| 224 |
|
|
| 19 |
|
Total assets |
| $ | 13,601 |
|
| $ | 13,770 |
|
|
|
|
|
|
|
|
| |
Liabilities and Stockholders' Equity (Deficit) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
Current liabilities: |
|
|
|
|
|
|
|
|
Accounts payable |
| $ | 921 |
|
| $ | 777 |
|
Accrued compensation |
|
| 1,962 |
|
|
| 2,311 |
|
Accrued expenses and other current liabilities |
|
| 589 |
|
|
| 817 |
|
Leasehold liability, current portion |
|
| 1,210 |
|
|
| 1,102 |
|
Preferred stock dividends payable |
|
| 653 |
|
|
| - |
|
Borrowings |
|
| 4,168 |
|
|
| 14,293 |
|
Total current liabilities |
|
| 9,503 |
|
|
| 19,300 |
|
|
|
|
|
|
|
|
| |
Leasehold liability, long-term portion |
|
| 217 |
|
|
| - |
|
Other long-term liabilities |
|
| 6 |
|
|
| 672 |
|
Total liabilities |
|
| 9,726 |
|
|
| 19,972 |
|
|
|
|
|
|
|
|
| |
Stockholders' equity (deficit): |
|
|
|
|
|
|
|
|
Convertible preferred stock, par value |
|
| - |
|
|
| - |
|
Common stock, par value |
|
| 3 |
|
|
| 1 |
|
Additional paid-in capital |
|
| 438,153 |
|
|
| 414,493 |
|
Accumulated deficit |
|
| (434,281 | ) |
|
| (420,696 | ) |
Total stockholders' equity (deficit) |
|
| 3,875 |
|
|
| (6,202 | ) |
Total liabilities and stockholders' equity (deficit) |
| $ | 13,601 |
|
| $ | 13,770 |
|
SOURCE: Avinger, Inc.
View the original press release on accesswire.com
FAQ
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