Dave Turkaly

Dave Turkaly asked for clarification on the reported decrease in generator sales, specifically how it relates to the Aon system launch and its impact on gross margins.

Answer

CEO Charlie Goodwin explained that the reclassification of sales due to the Aon system launch impacts generator sales reporting, as Aon sales now encompass Apex One generators. He also stated that the company is not providing specific revenue or gross margin guidance for Aon but reiterated that the surgical aesthetics business, particularly in the U.S., historically yields the highest gross margins.

Dave Turkaly asked for clarification on the decline in generator sales, specifically how AYON sales classification impacts these figures, and inquired about the anticipated gross margin impact and potential uptick from AYON's rollout.

Answer

CEO Charlie Goodwin explained that generator sales are now classified under AYON sales, as AYON systems either integrate existing Apyx One generators, require an upgrade from RS3, or include a new Apyx One. He declined to provide specific gross margin guidance but noted that the Surgical Aesthetics business, particularly in the U.S., has the highest gross margins, benefiting the company overall.