I am in agreement about the press release, another reason to take it as a rumor. In the same article, partner CHC Healthcare sales were to expected to mirror the "miracle" of US sales after approval.
Search Taiwan Novadaq. Take this as a rumor due to possible translation errors (as seen below):
Put swollen medical equipment maker CHENGYE Medical (4164) today (18) announced officially made debut Novadaq SPY fluorescence image-guided surgery systems in Taiwan Product License; Because this product is an oligopoly market, is expected to be CHENGYE medical future growth momentum.
And another Novadaq company main products: PinPoint endoscopic surgery designed for the product license in Taiwan, is expected to also be successfully achieved before the end of the year. As for the mainland market, all products of the product licenses have been sent pieces of the audit, expected within the next year to achieve.
It's official, Novadaq/Lifecell agreement ends September 2015. Arbitration is being pursued to force Lifecell to develop applications beyond breast reconstruction and colorectal. I vaguely remember the existence of a section in the agreement that specifies how the hand-off will be managed over the last year it's in effect. Goodbye, Lifecell. Hello, full revenue.
I was going to attempt to answer your question with information released on the conference call but the numbers don't add up. A figure of $200,000 of royalties was stated as being deferred until FDA clearance. Also mentioned was a total of "about 90" total Firefly systems shipped. Further, 53 were royalty-paid Si systems. Let's round the the remainder to 40 Xi systems. I was under the impression that under the agreement, Novadaq received $15,000 per unit. If that were correct, then the Xi deferred royalty amount should be in the neighborhood of $600,000. As the title says, "A little help"?
As I have stated in another forum, I wish I knew some of the particulars of the agreement, such as non-performance and early termination clauses. But if Novadaq is insisting it be arbitrated (as granted by judgement), you may be sure they feel they have the upper hand.
I think 77k was for year-over-year, the 100k was for last quarter to this quarter; a little more interesting comparison at this stage of the game. I don't know why some companies can't present their story in a more positive light, especially when they can do it truthfully.
At first glance, this release was not overly exciting on the revenue side - until you notice that the microcutter sales figure last quarter was $100,000 versus this quarter's figure of $300,000.
From the conference call, it seems I was correct, the hardware for Firefly is all in place on current Xi systems and awaiting being "turned on" when FDA approval is granted. Hopefully, soon. We should then get a modest revenue bump when they are all finally booked.
More on litigation by searching Novadaq, Lifecell, spar, court. (San Antonio)
The sales agreement has now been taken off life support, all that remains is to call it. I regard this as a plus, as said before, SPY is best looked after by Novadaq.
From my post on the IV board (source theflyonthewall)-
Piper Jaffray says Novadaq not granted motion to dismiss Lifecell's complaint concerning employee solicitation. Lifecell directed to pursue arbitration. Piper Jaffray indicates this squabble will have little effect on Novadaq's sales numbers and rates its stock Overweight.
Link posted on IV.
Just as important, results indicate that from a healing and inflammation standpoint the D-shape is in no way inferior to the B.
On June 24th NOVADAQ presented at the JMP Securities Healthcare Conference. My apologies for not alerting ahead of the talk, but it is archived on the company site.
This is the first I have listened to the Vice President of Operations, Roger Deck, as presenter. The talk was fairly usual in terms of information and format as compared to others given lately. Though not quite as polished as Arun, Roger was more than competent as a spokesperson.
One item that got my attention was that there has been a marked rise in Firefly utilization over last two months due to its increased use in cholecystectomy. (I still think a new, full-color, enhanced Firefly will happen soon. Just look at the difference between the Pipoint and Firely slides.)
On the Lifecell saga, talks continue, Lifecell is anxious to extend the agreement and is open to terms more favorable to Novadaq. However, Novadaq isn’t convinced Lifecell management is as aligned with with them now as they were in the past.
Pressure is still being applied as evidenced from the talk:
Lifecell has done a great job at getting into plastic surgery but that’s a relatively small market. We could get much broader penetration within a hospital to take advantage of lots of other opportunities that they haven’t really worked on so far.
I have read that Firefly will be standard on Xi. This would seem to indicate that either the ones being sold now will have their vision swapped out after approval or, more likely, they already have all the Firefly hardware there and the software is waiting for an enable code.
Dating myself, but I had a computer professor who claimed to be around for a hardware upgrade to an IBM mainframe. The IBM techs gathered around, opened a cabinet, clipped a jumper wire and closed the cabinet. Voila, upgraded hardware.
Actually, I would rather see company action create the news rather than IR. More publications and FDA approval for the new daVinci Firefly would be welcome. My belief is that because Novadaq continues to spend heavily on growth and hover just short of profitability, some marketeers see this as an opportunity to hammer the stock after the large, pre-April run up in price.
Acquisition of Aïmago in April may have added further impetus to their plans to push the price down. Usually, an acquiring company's pps dips. Coupled with that is the question of whether Aïmago's product complements or competes with Novadaq's core technology with lessened revenues. For the traders, doubt equals short, and momentum up equals momentum down.
Short interest for the latest half-month period rose heavily again, up over 30%, standing at 2.2M shares short. Interestingly, since the beginning of April, it has risen a whopping 145%. When the pendulum swings, will it be an axe that cuts both ways?