Apyx Medical Corp. (NASDAQ: APYX) reported Q2 EPS of ($0.14), $0.07 better than the analyst estimate of ($0.21). Revenue for the quarter came in at $4.3 million versus the consensus estimate of $1.96 million.

Second Quarter 2020 Financial Summary:

• Total revenue of $4.3 million, down 35% year-over-year.
  • Advanced Energy revenue of $2.9 million, down 46% year-over-year.
  • OEM revenue of $1.4 million, up 10% year-over-year.
• GAAP net loss of $4.7 million, compared to total GAAP net loss of $4.3 million for the second quarter of 2019.
• Adjusted EBITDA loss of $4.9 million, compared to adjusted EBITDA loss of $3.6 million for the second quarter of 2019.
• As of June 30, 2020, the Company had cash and equivalents of $46.2 million, compared to $58.8 million as of December 31, 2019. As of June 30, 2020, the Company had working capital of $60.2 million, compared to $64.4 million as of December 31, 2019.

Management Comments:

“Our revenue decreased 35% year-over-year in the second quarter due to slower demand and procedure trends from our cosmetic surgery customers around the world as a result of the preventative or protective actions taken by governments in each of our primary markets in response to the COVID-19 pandemic,” said Charlie Goodwin, President and Chief Executive Officer. “While we expected our revenue results to be significantly impacted by COVID-related business disruption in the second quarter, we were pleased with the material improvement in our business trends in each month of the quarter. Specifically, as temporary closures of non-essential businesses and restrictions on elective procedures were lifted in May, we saw a steady increase in the number of practices reopening and a resumption of patient treatment activity. We were particularly encouraged by the notable increase in utilization-based demand for our Renuvion handpieces throughout the month of June, which resulted in handpiece sales increasing more than 80% year-over-year for the month of June.”

Mr. Goodwin continued: “Despite the challenging operating environment, our organization has performed admirably, and I am proud of their continued efforts to support our customers and ensure business continuity. We continue to monitor the crisis caused by COVID-19 in our primary markets and, while we are encouraged by the improving business trends and demand for our handpieces in June and July, the timing for returning to a normalized operating environment - particularly with respect to generator demand - remains highly uncertain. Importantly, we are well capitalized with $46.2 million in cash and equivalents at quarter-end, and our proactive efforts to reduce near-term spending in this period of business disruption contributed materially to our Q2 financial performance and will continue to do so during the second half of 2020. We remain intently focused on ensuring the Company is well positioned to return to executing on our growth strategy to expand our share in the global cosmetic surgery market as the post-COVID recovery takes shape in the coming months.”

Fiscal Year 2020 Financial Outlook:

Given the continued challenges and uncertainties posed by the ongoing global pandemic, the Company will not be providing full year 2020 financial guidance at this time. Assuming a more normalized business environment prevails at the time of our third quarter results conference call in November, we plan to provide updated expectations at that time.

For earnings history and earnings-related data on Apyx Medical Corp. (APYX) click here.