icad inc.

Thank you for standing by. This is the conference operator. Welcome to the ICAD, Inc. Third Quarter 2021 Earnings Conference Call. As a reminder, all participants are in listen-only mode and the conference is being recorded. After the presentation, there will be an opportunity to ask questions. To join the question queue, you may press star then 1 on your telephone keypad. Should you need assistance during the conference call, you may signal an operator by pressing star and zero. I would now like to turn the conference over to Brian Ritchie from LifeSci Advisors. Please go ahead.

Thank you, operator, and good afternoon, everyone. Joining us today from ICAT are Michael Klein, Chairman and Chief Executive Officer, Stacey Stevens, President, and Charles Carter, Chief Financial Officer. Earlier this afternoon, ICAD announced financial results for the three and nine months ended September 30th, 2021 in a press release, which is also available on the ICAD website. Before we begin, I would like to caution that comments made during this conference call by management contained forward-looking statements, involved risks and uncertainties regarding the operations and future results of ICAD. I would also note that management may refer to certain non-GAAP financial measures. Management believes that these measures provide meaningful information for investors and reflect the way they view the operating performance of the company. You can find a reconciliation of our gap to non-gap measures at the end of the earnings release. I encourage you to review the company's filings with the Securities and Exchange Commission, including, without limitation, reforms 10Q and 10K, which are which identify specific risk factors that may cause actual results or events to differ materially from those described in the forward-looking statements. Furthermore, the content of this conference call contains time-sensitive information that is accurate only as of the date of this live broadcast, November 9, 2021. ICANN undertakes no obligation to revise or update any statements to reflect events or circumstances after the date of this conference call. With that said, it's my pleasure to turn the call over to Michael Klein. Mike, please go ahead.

Thank you, Brian. Good afternoon, and thank you for joining us on our third quarter update call today. I'd like to begin with some high-level comments on our performance and achievements in the third quarter and provide an update on the current business and operating environment as we enter into the fourth quarter of the year. I will then pass the call over to Charlie, who will provide a detailed financial review, which will be followed by Stacey's more granular business update. As presented in our earnings release, ICAD's total revenue for the third quarter was 9.4 million, which represented a 20% increase sequentially and a 31% increase over the third quarter of 2020. Third quarter 2021 revenue was driven by sequential and year-over-year growth in both detection and therapy. In detection, we achieved growth of 26% over the second quarter of 2021 and 14% year-over-year. In therapy, we generated an increase in revenues of 10% as compared to the second quarter of this year and 83% year-over-year growth. In the third quarter, detection product sales were driven by sequential and year-over-year increases of 41 percent and 15 percent, respectively, and U.S. product AI detection revenue growth of 56 percent over Q2. Importantly, we expect this sales momentum to continue with the recent commercial launch of our new 3D risk assessment offering, which Stacey will highlight further shortly. Overall, despite the continued impact from a slightly elongated sales cycle, which we saw emerge in Q2, we saw a recovery in detection sales momentum in Q3. We did see modest headwinds in the OEM portion of our detection business as a supply chain issue for the underlying hardware manufacturers impacted the OEM mammography vendor shipments of previously ordered imaging equipment. This had a modest tempering effect on our AI product sales in Q3. The growth in our therapy business during the third quarter was driven by sequential and year-over-year increases in Zoth product revenues of 34% and 188% respectively, another key indicator of the strength in our business. The significant growth in therapy was the result of several factors, including the sale of 28 ZOFT controllers year-to-date, the majority of which were due to the continued surge in dermatology controller installations, which are being propelled by the emergence of positive shifts in reimbursement, payer coverage, and regulatory changes. Stacey will provide additional detail on this momentarily. Turning now to cash management, our ability to prudently manage cash in Q3 was an important focal point as revenue momentum rebounded. We expended $2.1 million of cash in the third quarter of 2021, leaving us with a strong cash position of $35.8 million to support our continued top line growth. In summary, despite the complex business environment characterized by a slightly longer enterprise sales cycle in our detection business, a modest supply chain trickle-down effect, and a perceptible yet waning COVID environment, we are pleased to continue on a balanced growth trajectory while appropriately managing costs. While we are excited about the formal launch of an entirely new product category, our risk assessment offering for 3D mammography, which looks one and two years ahead, that launch occurred in the final few days of Q3, just before Breast Cancer Awareness Month in October. And we're looking forward to leveraging the benefits of this product as it matures in 2022. Further information on this exciting product offering will be the cornerstone of ICAD's Investor Day that is scheduled for next Thursday, November 18th, and will provide additional color on both the detection and therapy segments of our business. This event will feature exciting product developments and interviews with several new key opinion leaders. With that, I will now turn the call over to Charlie for our detailed financial results. Charlie?