In a May 13 research note, Ladenburg Thalmann analyst Jeffrey Cohen reported that Viveve Medical Inc.'s (VIVE:NASDAQ) Q1/19 "reads fine."
Q1/19 revenue, net loss and loss per share were $3 million, $10 million and $0.22 versus Ladenburg's projections of $3.3 million, $8.6 million and $0.27, respectively. During the quarter, Viveve sold 43 systems and 2,300 disposable treatment tips, the latter still accounting for most of the revenue. Revenue from tips sales grew to 19% from 6% of total revenue in two years' time.
Viveve developed an internal care team whose members will be the main point of contact for its customers. The company also launched programs in which they provide physicians with best practices and peer experiences globally.
Operating expenses during Q1/19 were $9.8 million, higher than Ladenburg's estimated $9.3 million, mostly due to higher-than-expected selling, general and administrative costs. Those came in at $6.6 million, above the financial services company's $6.1 million forecast. On the other hand, research and development expenses were less than anticipated, at $2.5 million versus $3.2 million.
Gross margins for Q1/19 were less than Ladenburg predicted, at 36% compared to 45%. Cohen commented that Viveve likely will increase revenue through sales of its system's 2.0 version and from partners manufacturing the various components at a lower cost.
Upcoming catalysts, Cohen noted, are a full data readout in July 2019 from the LIBERATE International trial, Viveve's ex-U.S. stress urinary incontinence study. Q3/19 could potentially bring U.S. Food and Drug Administration clearance of Viveve's system domestically.
Ladenburg has a Buy rating and a price target of $2.50 per share on Viveve, whose current share price is around $0.46.
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Disclosures from Ladenburg Thalmann, Viveve Medical Inc., May 13, 2019
ANALYST CERTIFICATION: I, Jeffrey S. Cohen, attest that the views expressed in this research report accurately reflect my personal views about the subject security and issuer. Furthermore, no part of my compensation was, is, or will be directly or indirectly related to the specific recommendation or views expressed in this research report, provided, however, that:
The research analyst primarily responsible for the preparation of this research report has or will receive compensation based upon various factors, including the volume of trading at the firm in the subject security, as well as the firm’s total revenues, a portion of which is generated by investment banking activities.
COMPANY SPECIFIC DISCLOSURES:
Ladenburg Thalmann & Co. Inc. makes a market in Viveve Medical, Inc.
Ladenburg Thalmann & Co. Inc. has managed or co-managed a public offering for Viveve Medical, Inc. within the past 12 months.
Ladenburg Thalmann & Co. Inc received compensation for investment banking services from Viveve Medical, Inc. within the past 12 months.
Ladenburg Thalmann & Co. Inc had an investment banking relationship with Viveve Medical, Inc. within the last 12 months.
