Alex Silverman's questions to SANUWAVE Health Inc (SNWV) leadership • Q3 2024
Question
Alex Silverman asked about the progress of transitioning to new manufacturers for systems and disposables, the resulting impact on gross margins, the customer mix behind the 124 systems sold, and the current new customer pipeline.
Answer
An executive, Morgan Frank, confirmed the systems manufacturing transition is complete and the applicator transition is expected by Q2 of next year. CFO Peter Sorensen added that the gross margin benefit from lower-cost systems would be more visible in Q4. Morgan Frank noted that a few large, sophisticated customers drove a significant portion of Q3 system sales and that the new customer pipeline is the best ever, though sales cycles with these larger clients are longer.