Q1 2020 Earnings Call
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[music]. Thank you for joining tears first quarter 2020 earnings conference call. After the prepared remarks, there will be a question and answer session. The discussion today includes forward looking statements. These forward looking statements reflect management's current forecast or expectation of certain aspects of the companies.
Future business, including but not limited to any financial guidance provided for modeling purposes.
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Prescribed by gap with that I would like to turn the call over to our CEO Dave Bauer. Please go ahead.
Thank you operator into those on the call. We appreciate you joining us today for this update.
As you know the cobot 19 pandemic is an unprecedented crisis that his place tremendous pressure on our industry. So before we begin I'd like to take a moment to share my appreciation for our amazingly Brazilian customers into extend my deepest gratitude to the global acute care team for their selfless dedication and personal commitment.
About this challenging time.
Today I'm joined on the call by Jason Ritchie, President and Chief operating officer, as well as flood damage, our interim Chief Financial Officer.
I will begin today's call by providing a brief overview of our first quarter's business results and operational highlights.
Discussed the impacts of till the 19 on our first quarter and quarter to date results and share steps, we've taken to mitigate the financial impacts is called the 19 on our business.
Jason will then highlight some of the operational adjustments we have made in response to the pandemic and how these will carry through the rest of fiscal year 2020, following Jason Flogged will provide a high level review key financial performance indicators and detailed the steps we've taken to strengthen our balance sheet.
We will then conclude with a question and answer session.
Our first quarter of 2020 performance reflected the strengthened balance of our business exiting fiscal year 2019, offset by the significant impact as cold at 19 late within the quarter.
Through the first two months of 2022, Terry demonstrated strong sales across all product categories versus prior periods and continued to deliver strong growth from our international business, providing great balance and fueling our bullishness for an overall business prospects.
However, this balance was dramatically disrupted as a static practices, we're rapidly and dramatically impacted by the covert 19 outbreak and the subsequent shelter in place orders.
We initially experienced the slow decline of business associated with the initial covert 19 impact in the Asia Pacific region, particularly China and Korea. However, this initial impact was relatively immaterial for us as these regions comprise a smaller portion of our overall global revenue mix.
As the virus Spreaded elite other European countries, and then the middle East governments began to impose tighter restrictions on travel and gatherings. As a result, we canceled several ended period workshops in many of our customer suspended capital equipment deals that we had planned to ship within the quarter.
The coven 19 impact accelerated as the virus took hold in North America, causing or near complete shut down across the continent.
These effects escalators in the final two weeks of March when a number practices were forced to suspend procedures and in many cases completely shut down in response to shelter in place orders issued by state and local governments.
Our capital sales were significantly impacted throughout the month of March as travel restrictions in sell through in place orders unfolded capital equipment revenues represent approximately three quarters of teachers total sales and these deals are heavily back end loaded within the quarter.
The U.S. shutdowns remains in effect throughout April and will a few states have recently allowed certain practices to reopen most of the larger geography is extended their shutdown orders well into may.
Some of the international geographies remain open in a limited capacity and we are starting to see additional countries moved toward measured in stage reopenings that begin allowing procedures.
As office has reopened we expect patient traffic to be light initially ramping steadily through the back half of the year as restrictions are lifted in patients become more comfortable enough going office procedures.
As patient traffic begins to recover we expect consumable sales and service revenues to rebound first a pattern that we have seen in our industry during previous disruption to the economic cycle.
Having stayed very close with our core customers throughout the pandemic related slowdown we believed that there is pent up demand for a static procedures associated with our core customers, specifically aesthetic dermatologists dedicated to establish static practitioners and plastic surgeons.
We also know that a great. Many of these core customers have embraced tele medicine during their office shutdown period.
Using this tool to perform a static consults with their patients. These consult we're intentionally conducted to help accelerate their practices recovery by reducing the time between their office reopening and performing cash pay procedures.
We are told that many of these core customers are fully booked for their expected Reopenings office managers are scheduling procedures in anticipation of a may or June reopening depending on location and other factors in several customers in larger metropolitan areas. Our plan to run extended hours once reopened to satisfy pent up demand.
And and avoid loss of their clients. It is important to remember that this timeline is fluid and wholly dependent on the lifting a stay at home orders and other restrictions related to the cold 19 pandemic.
Once offices reopened core customers could see a surge in procedure volume over the course of a few months from patients that were unable to get treatment during the shutdown.
We expect the procedure volume will ultimately flowed through to Q tiers consumable revenues delayed slightly as customers attempt to deplete existing consumables stock on hand for the lower treatment volumes from mid March through April and into May.
In addition to the consumable revenue, we believe that service activities will return quickly as offices reopened as core customers will need to scheduled typical preventative maintenance activities and occasional repair request that keep their equipment running optimally.
Overall, we believe that these core customers, we'll see a quicker recovery in patient traffic than the non core customers such as med spas.
This is similar to the recovery trends from 2008 as non core customers experienced a slower pathway back to pre crisis levels.
As all of our customers deal with the financial challenges for an extended closures the demand for new equipment will likely diminish over the near term as practices keep a tight grip on their capital.
While there will be equipment deals happening as few did in April. These deals are expected to be highly competitive very price sensitive and coming in at a greatly reduced rate regardless, we are working hard to better position, our resources to effectively partner with customers over the longer term you.
You will hear a bit more about this from Jason shortly.
Most customers will need some time to recover from the covert 19 disruption before committing to any significant outlay of capital.
The return of consistent patient traffic will rebuild both their balance sheet as well as their confidence in making future equipment purchases as we are spending our time and helping them achieve this shared goal.
We have modeled the market recovery in phases group by product category and by geography, taking a conservative viewpoint on the return of revenue.
Giving our revised plan and the remaining uncertainty over the duration of the slowdown we have taken several steps to mitigate the financial and operational impact over 19 on our business.
These activities fit into three categories first cost cutting and cash preservation efforts to rightsize, our business and extend our operational runway.
Second supply chain reliability and optimization.
And third strengthening our balance sheet to ensure we not only survive the downturn would have the required capital to accelerate into and through the recovery phase.
Turning first to our cost cutting and cash preservation efforts. These measures included.
Furthering the vast majority of our hourly workforce consolidating back office operations and eliminating redundant positions from the new structure.
Implementing tiered salary reductions across the organization up to and including our board of directors and suspending several corporate projects in programs, which would no longer accretive within the near term.
Additionally, current shelter place orders have allowed us to avoid significant expenses with the reduction of employee travel cancellation of trade shows and the suspension of workshops and live promotional events.
With respect to cash preservation, we have negotiated several amendments to service contracts as well as deferred non critical facilities support activities. During this interim period of shutdowns.
Some of the steps we've taken to ensure continuity of our supply chain and maximize the efficiency of our working capital include reducing production volumes to accelerate the monetization of finished goods inventories advancing contract manufacturing efforts with lower cost us based operations.
Working with suppliers since the initial reports of covered 19 in January to ensure uninterrupted supply of critical components and engaging with our freight carriers regional distribution centers and local sales teams to stock forward location to avoid any potential customer delivery delays or shipment quarantine periods.
Moving now to our focus on strengthening the balance sheet.
Exiting 2019, we had roughly 33 million in cash with no debt. As this is the case each year first quarter activity typically drive cash consumption was seasonally lower revenues on the same base of fixed expenses.
First quarter 2020 liquidity was further challenged by inventories built in anticipation of equipment deals that did not close due to the covance related factors.
The net outcome of our operations resulted in 19.5 million cash at the close of first quarter.
As we constructed the various financial scenarios for the rest of fiscal year 2020, and considering the financial liquidity challenges from Covidien 19, we believed it important to have the capacity to weather the downside scenario of a protracted coded 19 recovery.
We assess topline impact the various cost saving efforts and the monetization of inventories as well as the likely expansion of receivables as customers push out their payments to us.
In considering the liquidity requirements. We also made conscious decisions to protect critical assets and to retain the ability to advance the transformational initiatives already underway prior to covert 19.
Primarily our pursuit of market leadership in body sculpting market bolstered by the recent launch of Crisco flex and our R&D programs focused on developing breakthrough products such as our innovative approach to acne.
While many of these cost cutting decisions were difficult and unfortunately impacted several amazing people folks I consider close teammates they were choices necessary to ensure the long term health of the business.
I'm very confident that the management team has executed a thoughtful and measured plan, which provides key terror with the requisite cash runway.
Retains the needed access to critical recovery resources and ensure is our ability to deliver the services and support our customers need during this challenging time.
I am confident that continue we'll move through the cobot 19 prices and exit leaner meaner and hungry to take share.
And now I will turn the call over to Jason.
Thanks, Dave as we rapidly transitioned into the cobot 19 environment at the end of Q1 did you tear team pivoted quickly to adapt to these new an unfamiliar condition.
In doing so I was impressed with the agility of our team to align around clearly defined priorities to weather the storm and stay focused in primed to execute.
As we established our priorities we committed to the following.
The health and safety of our employees, our partners and our customers.
Second connecting daily with our active installed base of customers.
Third reaching out to our medical advisory board to gain their input and ensure we were aligned with them on activities and messaging.
For staying hyper focused on our core customers.
Fifth remaining flexible.
And finally committing to the resources improvements necessary to accelerated through the recovery period, and assist our clinicians and getting up and running as quickly as possible.
Once we established our priorities and daily focus we ensured that our commercial team new working environment was organized we structured.
Our sales marketing and service teams had been working hand in hand picture no time.
In short term please.
Each member of our commercial team has a tight daily schedule that its hyper focused on connecting with our customers listening to their concerns and leveraging our resources to assist our customers as they work to manage their practices retailer employees and fill their schedules in preparation for reopening the practices.
After consulting with our medical Advisory Board, we launched several important educational tool to assist our customers as they navigate the challenging time.
First we created a long series of Webinars led by global leaders covering a wide array of topic that include everything from how to conduct virtual consultation to how to unleash your device portfolio to get up and running as quickly as possible.
Second we created the Q tear survival guide and trained our commercial team to effectively deliver this information declination.
The guide was developed to help physician managed through cobot 19 by covering topics that include how to apply for small business one how to renegotiate the lease office space in capital equipment out of market your practice using social media and.
And how to lineup patients for your clinic once you reopened your doors.
Finally, we're working closely with our clinicians to help where we can.
We have extended discounts on our consumables that will help clinicians back on their feet more quickly as their office procedures ramp up.
We have also extended our service contracts to cover the time loss, while conditions were unable to treat patients and their offices.
As we adjusted our daily activity, we except the fact, it will take some time to get back to the environment, we were accustomed to.
We have revisited our commercial strategy and made necessary adjustments to how we will work for the balance in 2020.
As virtual meeting consul demonstration and educational programs will certainly play a big role in our new normal we are actively evaluating additional ways in which we can pivot as an organization to partner with our physicians and bring patients through their doors.
Specifically, we are preparing for evaluating following scenarios.
First evolving our demonstration and workshops to smaller and more localized events, but allow virtual participation.
Second working with practices to drive procedure volume with a focus on skin revitalization and body sculpting by driving lower cost high impact procedures like laser Genesis and micro needling.
In addition, we're leveraging our body spoken portfolio to promote losing the cobot 15 by driving packages for truthful guide the influx.
By doing this we feel increased patient traffic will present opportunities to conduct increasing capital transactions along the way.
And third we are evaluating select utilization of alternative models, which lowered the initial capital commitment, enabling customers to time needed to rebuild or practices and balance sheets without compromising their equipment choices.
While we have an idea of the activities that need to take place in order to drive recovery. The patient demand, we have limited visibility into the exact timing by region as restrictions or amended but not yet consistently understood or embrace but rest assured in both North America and internationally, we have a team in place that executing daily and is eager to get back in front of cuts.
As soon as shelter in place behind Us.
Finally, I'd like to touch on our R&D focus despite the cobot 19 pandemic our focus remains on long term portfolio differentiation through two key initiatives.
One continuing to evaluate opportunities to introduce practice expansion capabilities by a refreshing our legacy portfolio and complementing our verticals with best in class devices that introduced disruptive technology.
To that commitment and focus on bringing energy based solutions to treating some of the blue ocean opportunities within the aesthetic space, including a permit cure for chronic and recurrent acne.
As we continue to advance through the product development and clinical research processes, we're hopeful to launch our ACMI solution in 2021 with our core physician.
I'll conclude by saying that despite all the challenges Cobot 19 has created for the global aesthetic space I'm incredibly proud of our team and how they have reacted to this new normal.
I am confident the changes we have implemented will position us well exiting this challenging time and I believe we will emerge from this pandemic room mean and ready to execute.
Team is hungry and eager to get back in front of our customers.
And now I would like to turn the call of one to review first quarter financial highlight what.
Thank you Jason.
Before I begin please note a bit remark will focus primarily on non-GAAP results unless otherwise noted.
Reconciliation of GAAP to non-GAAP is included in our earnings release, and we encourage listeners and readers to review our non-GAAP metrics in conjunction with a GAAP results as contained in our earnings release.
I will now go over our results for the first quarter fiscal 2020.
As David Chase and discuss the first quarter fiscal 2000, what the difficult one as we were severely impacted by coven 19 pandemic.
Shelter in place or similar orders, all but halted our sales activities in North America and rest of the world during the most productive part a quarter.
We entered fiscal 20 with tremendous we mentioned by virtue of achieving well above market revenue growth rate for both the fourth quarter fiscal 19 and full year 19.
Despite these challenges a commercial team displayed makes naphthalene the first quarter and we continue to meet benefit of their hard work into the second quarter.
Now to the numbers.
Total revenue for the first quarter fiscal 2000, with 32.2 million compared to 36 million for the same period last year, 11% decline disciplines distributed entirely through our inability to meaningful sales activity. So much of March.
US revenues up, particularly the 32% decline compared to the same period and 19.
While international revenue grew 18% to 18.5 million.
International revenue growth was our ongoing efforts to build out international commercial team.
We also saw strong growth in skincare business in Japan, which grew nearly 80% 19.
Global consumable revenue grew 30% year over a year 2.5 million, while consumable revenue grew over same period last year. It was well below our expectations, usually closes up physicians offices in the first quarter because of Copel 19 related shutdowns.
Service revenue grew 11% over last year to 5.8 billion as result of having increasing number of system under extended service contracts.
For the first quarter fiscal 2000, total recurring revenue, including consumables Global service in skincare and categories grew 28% or the same Peter last year to 11.3 million.
Recurring revenue represented 30% of the total revenue in the fourth quarter fiscal 2000 versus 25% in first quarter of 90.
We remain committed to driving increased recurring revenue streams in order to improve our visibility durability and profitability over the long term as our revenue mix continues to balance.
Moving to expenses.
Well the first quarter fiscal 2000 recorded non-GAAP gross profit of 14.8 million compared to 17.7 billion for the same period than 19.
Non-GAAP gross margin in the first quarter of 20 was only 5.8% versus 49.1% for the same Peter and last year.
The reduction in gross margin.
Significantly lower overhead absorption due to lower revenue.
Non-GAAP sales and marketing expenses for the quarter, where.
13 million compared to 14.4 million for the same period last year.
This decline is and it's also substantially lower variable compensation and suspension of all marketing activities in the second half of Q1.
Total non-GAAP R&D expenses were essentially flat year over year.
The investments that we had made you know back and you know a year year and a half ago, New management, new structures were continuing to pay dividends not only in Japan, and Australia, New Zealand will continue to do amazing work, but we're starting to see the same performance results escalate in the European environment as well.
As new teams are being developed and new new techniques and new prophecies are taken hold so I think that we still have a long way to go with international were significantly Underpenetrated as a company in our international market as compared to how we perform in the U.S. and I think that we will.
Continue to see that significant strong girls from the international component over an extended period.
Just to follow up on the business specifically your any color on what you're seeing in these markets just in terms of leading indicators, what we could see U.S.
<unk>.
Jason maybe you can kind of just highlight to you know you're viewed Japan, and Korea and China.
Yeah.
Great question, you know looking at Japan Korea, China, you know, it's still a Pico Haven, there's a lot of energy and enthusiasm around because <unk> lightning. If you will however, I think we're going to see some growth in the body sculpting business. Specifically is we're seeing a lot of momentum going through them around that.
Our goal is to launch or flex device, hopefully latter part of this year and many of these key markets and I think there's a lot of enthusiasm around that so we've got the woman Torian place I think we've got the team in place and our goal is to get flex over two asiapac as soon as possible because I think that's going to be one of the key products to really dry for at least the next.
Call It 12 to 24 months.
Yeah, I I, we just add you know the from a behavior perspective, we know that career came back on line with you know I'm kind of a lower participation rate as things started to ramp back up similar in in China.
Yeah. This is less of an economic issue I think for customers as it is an awareness and an exposure.
But the thing that we're realizing and I think is is kind of telling factor is that we don't believe this could be a patient.
Slow or patient traffic issue, we actually think that the the the the if you will the governor on patient traffic.
The cases may reside within the practice.
Being able to provide social distancing within their waiting rooms, being able to wipe down and clean out rooms. After a patient comes through there in order to protect me have kind of an immediate impact on their capacity and I think we're we're certainly anticipating that from what we've witnessed in other geography that's.
Why in the comments, we said we believe it will be light initially until these routines become more habitual more regular more understood within the practices and then there'll be able to ramp a little bit more aggressively.
I hope that helps you try.
Gray or.
Thank you.
But you aren't next question comes from a line Matthew Brian from Piper Sampler. Your question. Please.
Oh afternoon.
Thanks for taking my questions, either Dave or K. thing you know you you mentioned the push on.
On the new system side of things you know some are probably m. eight to 10 million dollar range globally. How do we think about those orders specific way or they just outright canceled or do you have any kind of line of sight as far as to pearls and and when they may come back and then what she may need to do from a pricey you know financing flux.
Ability perspective in order to you know require those those customers and no sales yeah, let me hit that at a higher level math and and <unk>, Jason kind of give you. Some specifics first of all I wanted to kinda. Thank you for dialing in and and being part of this.
The the Big picture here is that we know that several of the capital deals were probably more different than they are a cancellation.
We know the there is need in in some of the distributor markets. They know that there's need but they also know that they can't be exposed from a cash perspective either.
So this is gonna be probably a little bit more of a an individual decision for them as they pick up the the deals that they had previously committed to we're working individually with those distributors and and like I said, we believe that the vast majority of this is different you know by a quarter or two and not necessarily a cancellation.
So we we think international will will rebound as well similar to the U.S., it's a matter of competence and economic competence and seeing the patient traffic.
I I think the the the second part to your question, though is really more about you know, what's really take and how do you get there and I think Jason has got a great program laid out maybe you you can walk through that Jason.
Yeah.
Looking through you know step by step what we're doing by country in order to make sure that we get them back on line, we looked at a couple of different scenarios in which we can better place capital within some of these key markets and really get our customers up in using this technology and so we're evaluating a lot of that now to Dave point.
I think a lot of this is just a perl the enthusiasm for the portfolios quite high internationally and I think you know a lot of this just a matter of getting some other consumer confidence back in place as they start to see patients coming through their doors, they're going to get more competent to.
Pulled the trigger on that so when in our discussion with our distributors in with her international conditions, It's really more around just hate could we can we push this off until the summer or or or or maybe early fall <unk> in order to just start to get some of these things sorted I mean, we had a when a conference in Australia right before shelter and.
We had 140 conditions, there and all of them very eager to to get into pieces of the portfolio, but it's just a matter of I'm, saying, okay. When when am I going to feel comfortable to do that so we're working with clinicians and country by country specific in terms of trying to find ways to ease them into capital and find ways in which.
Utilize technology to help bolster their practice and drive volume.
Yeah.
Okay. That's that's really helpful. And then you know can you just have frame up maybe a little bit as far as the the thought process. I mean every every metric that I was bottling for Q1, you you actually hit her beat except for North America.
You know so the there's good momentum in a lot of the business outside of what happened here in North America.
Do we think about cute to just some error bars around you know what the revenue could look like.
You know maybe versus Q., why and how bad could it be what you see it may be in April and then same kind of question on the Outback side of things how much are you you'd be able to save and my I pod just have one more question after that okay, let's take it easy one of the time <unk> Yeah. That's a really deep question and then I think it's inappropriate one <unk> to answer to the.
The the folks on the call. So thanks for putting it out on the table.
From my perspective meant you know I I think revenues in the quarter still yet to be understood.
We know for a fact that April was you know near shut down type of behavior is for for our customers even in that environment. There were still some capital deals to be had they they were you know few and far between unfortunately as a result of of the environment.
But you know I think you know this there there's capital did we had the capital deals to be hat and and the thing you want to be very cautious of his own to not fall prey to letting it be a drop your price mentality and let people be two opportunistic to take advantage if they have capital to to pay you know relative.
Low prices because that would be you know a a long term impact on the business that we think this to be more transitory right. So so we want to be careful not to kind of fall prey to to that kind of an outcome.
So that that's the first.
Point, I guess I'd make the second thing is we also know the those near close near near shutdowns. If you will prohibit the two things prohibited patients from getting treated which didn't allow the consumer will <unk> uptake. So those things sat on the shelf in the in the physician's offices, and then secondarily it didn't allow us to provide service.
So a lot of the equipment is sitting in the office meeting preventative maintenance and all that schedule is going to have to be caught up with a very finite amount of resource. So you you know our challenges kinda twofold here, it's to to make sure that we are <unk>.
Thing, our customers up and running as quick as possible, allowing them and helping them bring their patients into the practice and then secondarily and probably most importantly from from our perspective <unk> is making sure that you know we're not doing anything that causes long term harm to our company by how we're kind of.
Moving through these next several weeks.
On the back side I would say that.
<unk> the shelter and place came in kind of a three stage approach right.
They they came out first with the kind of a a little bit of yeah. This is going to be problematic and we really think you should you know slow down or not travel et cetera. Then it became a shelter in place and then the shelter and places got extended and then even in in Northern California. They get extended again, so as we look at that you know we.
We're very cautious to know that we believe it you know we know it's coming back. We we just don't know the date or the time and I want to be very careful. So as we went through that timeline. You know you wanted to be careful not to over cut or you'll get too far ahead of yourself. So.
We've got a gone through our belt tightening exercises here the view to save on the long term, but those good executed at a point, where you know we've incurred a a vast majority of our expenses early in the quarter for the people that we thought we would need for the recovery that we're still to happen it may.
Now that that's been pushed off a period and the speed of that recovery, maybe delayed we were able to make it a little bit more aggressive.
<unk> and put those in place, but the benefit of those really aren't going to come to the elite part of this quarter and really be shown on her balance sheet and on the P.N.L., probably and Q3 in particular.
Got it and again thanks for the third question here I know everybody is worried about what's going on here in the near term and I understand that but the the commentary from Jason on the watch of ASCII and 2021 certainly.
You know, it's very appealing are compelling to me anyway can you just talk about you know how that watch what local it'd be a real measure launch second half of a year and men any thoughts as far as what the the indication may look like as you do you know that the technology out.
Yeah, Let me hit a a couple of points and and then certainly Jason if a if you have additional comments preemie come over the top of that but you know first of all I think you're thinking about it rained. Jason said 2021, you know we're doing everything in our power to accelerate those timelines as you would imagine you know, we we're hopeful that that would be a kind of a a much earlier.
21 launch however, you know shelter in place and delays in practices have kind of suspended or ability to enroll patients right. So that has kinda delay this a little bit day for day at this point Unfortunately, but I can tell you that we've taken that extra time to really make sure that were honing not only the proud.
But the protocol necessary to get the optimal outcomes. So this may not be this man to be in a silver lining for us in the company to make sure that as we do rule. This out it's being rolled out in a way that has very robust and durable outcomes as we launched this and bring it into the market you know.
It'll be kind of a an approval that allows us to get to the market with an X.D. treatment that folks feel good about with good clinical data, but this is really a a very different type of launch the most of static products because we believe the depth of not just the clinical data, but the clinical evidence.
And the appeal not just to the a static dermatologist, but to the med germs in particular could be quite critical in having a successful launch here. So we're taking the time to build this structure to build the foundation of clinical evidence and using kind of an evidence based technology approach to launching this into the into the marketplace.
Like I said this could be a little bit of a a silver lining for us to slow down enough to make sure that we have better and deeper data sets that allow us to be a lot more focused in the launch I will tell you that our view here is that this is a core customer product. It is not a product that you know.
<unk> the the the dentist is going to put into his practice and treat acne patients.
Acne is a significant portion of the dermatology practice, you know roughly one in three patients are there for acne or some form of acne.
And and we want to make sure that what we provide is really focused on allowing the dermatologist to treat that acne with high degrees of success at of low friction point, if you will for for both the the patient and the customer our Doctor right.
Thanks for taking on the questions.
Q once again, ladies and gentlemen, if you have a question at this time. Please press start then one.
Well operate I guess, if there are no more questions. We can we can just close I I do have a couple of comments just include.
You know first of all I Wanna wish each and every one of you on the call to stay safe and do the right thing I think we're obviously flattening the curve, who there are behaviors and I really appreciate the way everyone is amended the their behaviors to do so.
I also want to just say that we recognize that the current situation is transitory right. This is you know we're here for the long term and we're committed to the long term and the premise of that long term has been once informed our decisions and allowed us to ensure that <unk> will be well positioned to not only recover quickly, but provided unmatched level of support.
Customers around the World I'm, a special thankful to our team professionals, who are working alongside a very very resilient group of customers and we are equally committed to rebuilding our businesses together. So thank you for tuning in today and look forward to future updates.
Thank you ladies and gentleman for your participation that takes conference. This does include the program you may now disconnect good day.
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