• Total Revenue: $1.7 million for Q3 2024, down from $1.8 million in the previous quarter and the same period last year.
• Gross Margin: 26% in Q3 2024, up from 20% in Q2 2024 and 21% in Q3 2023.
• Operating Expenses: $4.1 million in Q3 2024, down from $4.5 million in Q2 2024 and $4.4 million in Q3 2023.
• Net Loss: $3.7 million in Q3 2024, a 15% improvement from $4.4 million in Q2 2024 and a 17% improvement from $4.5 million in Q3 2023.
• Adjusted EBITDA: Loss of $3.4 million in Q3 2024, a 12% improvement from a loss of $3.8 million in Q2 2024 and a 10% improvement from a loss of $3.7 million in Q3 2023.
• Cash and Cash Equivalents: $5.9 million as of September 30, 2024.

• Warning! GuruFocus has detected 4 Warning Signs with AVGR.

Release Date: November 07, 2024

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

• Avinger Inc (NASDAQ:AVGR) achieved notable improvements in operating efficiency and made meaningful strides toward strategic objectives.
• The company implemented a cost savings program, reducing overall headcount by 24%, leading to improved efficiency and gross margin.
• Despite a leaner sales team, Avinger Inc (NASDAQ:AVGR) maintained approximately 90% of revenue compared to the prior quarter and the same period last year.
• The full commercial launch of the Pantheris LV catheter showed positive market response, with a 20% increase in revenue over the previous quarter.
• Avinger Inc (NASDAQ:AVGR) made substantial progress in developing its first coronary product, with successful completion of phase three testing and preparation for an IDE application with the FDA.

Negative Points

• Total revenue for the third quarter of 2024 was $1.7 million, slightly down from $1.8 million in both the previous quarter and the same period last year.
• Operating expenses for the third quarter of 2024 were $4.1 million, indicating a need for further cost management.
• The company reported a net loss of $3.7 million for the third quarter of 2024, despite a 15% improvement from the previous quarter.
• Avinger Inc (NASDAQ:AVGR) faces material risks and uncertainties that could cause actual results to differ from forward-looking statements.
• The strategic decision to concentrate field support on higher volume user sites may limit market reach and revenue growth potential.

Q & A Highlights

Q: What feedback have you received from physicians regarding the Pantheris LV, and how do you foresee its future adoption? A: Jeffrey Soinski, CEO: The response to the Pantheris LV has been positive, with physicians appreciating its simplicity and ease of use. The device was designed to streamline procedures and is showing early success in the market. Despite being in the early stages of full commercial launch, Pantheris LV revenue increased by over 20% compared to the previous quarter.

Q: How confident are you in Zylox's ability to obtain regulatory approval in China, and what additional steps are needed for commercialization? A: Jeffrey Soinski, CEO: We are confident in Zylox's progress, having completed rigorous type testing and several regulatory filings. We anticipate regulatory approval in China by the second half of 2025. Zylox is also developing manufacturing capabilities, expected to be ready by mid-2025, which will help reduce costs and support market entry.

Q: Can you elaborate on the strategic realignment and its impact on financial performance? A: Nabeel Subainati, CFO: The strategic realignment included a 24% reduction in headcount, focusing on high-value accounts, and streamlining operations. This resulted in improved operating efficiency, with gross margins increasing to 26% and a reduction in operating expenses to $4.1 million in Q3 2024.

Q: What are the anticipated benefits of the coronary CTO crossing system, and what is the timeline for its development? A: Jeffrey Soinski, CEO: The coronary CTO crossing system aims to reduce procedure times and improve success rates using OCT guidance. We have completed phase three testing and submitted a pre-submission package to the FDA. We expect to file the IDE in the fourth quarter and begin patient enrollment in the first half of 2025.

Q: How does the partnership with Zylox-Tonbridge align with Avinger's strategic goals? A: Jeffrey Soinski, CEO: The partnership with Zylox provides market access to China, cost-effective manufacturing, and aligns investment interests. It supports our strategic goal of expanding into the Chinese market, which has a significant population affected by peripheral artery disease, and offers potential cost reductions through offshore manufacturing.

For the complete transcript of the earnings call, please refer to the full earnings call transcript.