AirXpanders, Inc., a medical device company focused on the design, manufacture, sale and distribution of the AeroForm Tissue Expander System, today released its Appendix 4C - Quarterly Cash Flow report for the quarter ended 30 September 2017.
Highlights for the quarter ended 30 September 2017
- Revenue increased to US$1.2 million compared to US$0.2 million in Q3 2016; driven primarily by U.S. sales growth
- U.S. unit sales grew 108% compared to Q2 2017
- AeroForm® available in more than one hundred and twenty (120) hospitals across the US
- Third party contract manufacturer in Costa Rica validated and on-line for higher capacity production
- Closed US$15 million minimally-dilutive debt agreement with Oxford
- Cash and short-term investments balance as of 30 September 2017 of US$30.8 million
Palo Alto, CA, United States – AirXpanders, Inc. (ASX: AXP), a medical device company focused on the design, manufacture, sale and distribution of the AeroForm® Tissue Expander System, today released its Appendix 4C – Quarterly Cash Flow report for the quarter ended 30 September 2017.
Revenue performance for the quarter was as follows:
| (US$ in ‘000, unaudited) | Q3 2017 | Q3 2016 | % Growth |
| Revenue | $1,177 | $159 | 640% |
| Units Sold | 459 | 84 | 446% |
Worldwide unit sales of the AeroForm Tissue Expander grew to 459 units, an increase from 297 units in second quarter 2017. This was driven by continued acceleration of the Company’s targeted market release of AeroForm in the United States in the third quarter of 2017, with unit sales of 366 units, compared to 176 units in the second quarter of 2017, an increase of 108%. Revenue growth in the third quarter continued to outpace unit growth due to the additive impact of higher average unit selling prices (ASPs) in the United States. In Australia, unit sales were 93 units, which is slightly down on the previous quarter with the Company experiencing a turn-over of sales personnel in certain regions.
“Our third quarter results are the product of continued progress during our controlled launch of AeroForm in the U.S. market. Our sales representatives are successfully on-boarding and training physicians, working with them on their initial cases and helping ensure an overall positive clinical experience and outcome for both physicians and patients alike. AeroForm is now already available in over 120 hospitals throughout the United States,” said Scott Dodson, President and CEO of AirXpanders.
“We were also excited to announce the completion of our manufacturing transfer with Medplast in Costa Rica. We believe the availability of product out of that facility is the basis for future increased capacity and improved gross margins.”
The Company had total cash and short-term investment balances of US$30.8 million as of 30 September 2017. Short-term investments consist of highly liquid, U.S. Treasury securities. Cash outflow for operating activities during the quarter was US$9.8 million, compared to US$8.4 million in the previous quarter. This increase was primarily attributable to the Company’s build of inventory of US$4.2 million, to support the increasing demand for AeroForm the Company is experiencing in the U.S. Cash outflows for property, plant and equipment also decreased to $0.8 million from $0.9 million in the second quarter of 2017.
Investor Conference Call
An investor conference call to discuss the Appendix 4C and Quarterly Update will be held on Friday 20 October 2017 9:00am AEDT (Thursday 19 October 3:00pm PDT). An archived version of the webcast will be available in the Investor section of the company’s website at www.airxpanders.com, until the posting of the next webcast.
For those who have pre-registered for the call – please use the pin and dial in provided in your email, alternatively you may use the following dial in details.
Conference ID: 254004
Conference Call Toll-Free Access Numbers
Australia Toll Free: 1 800 558 698
Alternate Australia Toll Free: 1 800 809 971
