CLEVELAND, Nov. 8, 2018 /PRNewswire/ -- ViewRay, Inc.
(Nasdaq: VRAY) ("the Company") today announced financial results
for the third quarter ended September 30,
2018.
Third Quarter 2018 Highlights:
- Total revenue of $17.7 million, primarily from 3 revenue
units.
- Received new orders for MRIdian systems totaling $36.2
million. The backlog as of September 30,
2018 was $200.9 million.
- The Company raised net proceeds of $161.9 million during the quarter from a common
stock public offering.
"We have a tremendous opportunity to become the standard of care
in radiation oncology. During the third quarter we made significant
progress building our team and processes to capitalize, and much
work lies ahead," said Scott Drake,
President and CEO.
Third Quarter 2018 Results:
Total revenue for
the three months, primarily from 3 MRIdian revenue units,
was $17.7 million compared to $12.2
million for the same period last year.
Total cost of revenue was $17.3
million compared to $10.2
million for the same period last year.
Total gross profit was $0.4
million compared to $2.0
million for the same period last year.
Total operating expenses were $24.5 million, compared to
$13.6 million for the same period
last year. Operating expenses in 2018 include $5.0 million in severance expense for certain
terminated executives.
Net loss was $(32.9) million, or
$(0.39) per share, compared to
$(11.2) million, or $($0.19) per
share, for the same period last year. The net loss in 2018 includes
$5.0 million of severance expense for
certain terminated executives and $6.7
million related to a change in fair value of warrant
liabilities.
Cash and cash equivalents were $201.5
million as of September 30,
2018, compared to $66.1
million as of June 30, 2018,
primarily due to the equity financing in August of 2018.
Nine Month Results Ending September 30, 2018:
Total revenue for the
nine months, primarily from 10 MRIdian revenue units,
was $60.3 million compared to $14.1
million for the same period last year.
Total cost of revenue was $54.3
million compared to $12.1
million for the same period last year.
Total gross profit was $6.0
million compared to $2.0
million for the same period last year.
Total operating expenses were $59.6
million compared to $37.4
million for the same period last year.
Net loss was $(62.4) million, or
$(0.82) per share, compared to
$(47.5) million, or $(0.85) per share, for the same period last
year.
Financial Guidance:
Due to an installation delay at a
customer site, the Company now anticipates 2018 total revenue to be
approximately $80 million.
Conference Call and Webcast
ViewRay will hold a conference call on Thursday, November 8, 2018 at 4:30 p.m. ET / 1:30 p.m.
PT to discuss the results. The dial-in numbers are (844)
277-1426 for domestic callers and (336) 525-7129 for international
callers. The conference ID number is 6190699. A live webcast of the
conference call will be available on the investor relations page of
ViewRay's corporate website at www.viewray.com.
After the live webcast, a replay of the webcast will remain
available online on the investor relations page of ViewRay's
corporate website, www.viewray.com, for 14 days following the call.
In addition, a telephonic replay of the call will be available
until November 15, 2018. The replay
dial-in numbers are (855) 859-2056 for domestic callers and (404)
537-3406 for international callers. Please use the conference ID
number 6190699.
About ViewRay
ViewRay®, Inc. (Nasdaq: VRAY), designs, manufactures and markets
the MRIdian® radiation therapy system. MRIdian is built upon a
proprietary high-definition MR imaging system designed from the
ground up to address the unique challenges and clinical workflow
for advanced radiation oncology. Unlike MR systems used in
diagnostic radiology, MRIdian's high-definition MR was purposely
built to deliver high-precision radiation without unnecessary beam
distortion, and consequently, help to mitigate skin toxicity and
other safety concerns that may otherwise arise when high magnetic
fields interact with radiation beams. ViewRay and MRIdian are
registered trademarks of ViewRay, Inc.
Forward Looking Statements:
This press release contains forward-looking statements within
the meaning of Section 27A of the Private Securities Litigation
Reform Act. Statements in this press release that are not purely
historical are forward-looking statements. Such forward-looking
statements include, among other things, the rate of new orders,
upgrades and installations, ViewRay's financial guidance for the
full year 2018 and ViewRay's conference call to discuss its third
quarter and year to date results. Actual results could differ from
those projected in any forward-looking statements due to numerous
factors. Such factors include, among others, the ability to
commercialize MRIdian Linac System, demand for ViewRay's products,
the ability to convert backlog into revenue, and the timing of
delivery of ViewRay's products, the timing, results and other
uncertainties associated with clinical trials, the ability to raise
the additional funding needed to continue to pursue ViewRay's
business and product development plans, the inherent uncertainties
associated with developing new products or technologies,
competition in the industry in which ViewRay operates and overall
market conditions. For a further description of the risks and
uncertainties that could cause actual results to differ from those
expressed in these forward-looking statements, as well as risks
relating to ViewRay's business in general, see ViewRay's current
and future reports filed with the Securities and Exchange
Commission, including its Annual Report on Form 10-K for the fiscal
year ended December 31, 2017 and its
2018 Quarterly Reports on Form 10-Q, as updated periodically
with the company's other filings with the SEC. These
forward-looking statements are made as of the date of this press
release, and ViewRay assumes no obligation to update the
forward-looking statements, or to update the reasons why actual
results could differ from those projected in the forward-looking
statements, except as required by law.
|
VIEWRAY,
INC.
|
|
Condensed
Consolidated Statements of Operations and Comprehensive
Loss
|
|
(In thousands,
except share and per share data)
|
|
(Unaudited)
|
|
|
|
Three Months Ended
September 30,
|
|
|
Nine Months Ended
September 30,
|
|
|
|
2018
|
|
|
2017
|
|
|
2018
|
|
|
2017
|
|
|
Gross
Orders
|
|
$
|
36,209
|
|
|
$
|
29,850
|
|
|
$
|
92,017
|
|
|
$
|
79,460
|
|
|
Backlog
|
|
$
|
200,868
|
|
|
$
|
194,769
|
|
|
$
|
200,868
|
|
|
$
|
194,769
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenue:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Product
|
|
$
|
16,492
|
|
|
$
|
11,358
|
|
|
$
|
57,237
|
|
|
$
|
11,358
|
|
|
Service
|
|
|
1,056
|
|
|
|
721
|
|
|
|
2,706
|
|
|
|
2,408
|
|
|
Distribution
Rights
|
|
|
118
|
|
|
|
118
|
|
|
|
356
|
|
|
|
356
|
|
|
Total
revenue
|
|
|
17,666
|
|
|
|
12,197
|
|
|
|
60,299
|
|
|
|
14,122
|
|
|
Cost of
revenue:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Product
|
|
|
15,199
|
|
|
|
9,728
|
|
|
|
49,564
|
|
|
|
10,322
|
|
|
Service
|
|
|
2,103
|
|
|
|
484
|
|
|
|
4,732
|
|
|
|
1,758
|
|
|
Total cost of
revenue
|
|
|
17,302
|
|
|
|
10,212
|
|
|
|
54,296
|
|
|
|
12,080
|
|
|
Gross
margin
|
|
|
364
|
|
|
|
1,985
|
|
|
|
6,003
|
|
|
|
2,042
|
|
|
Operating
expenses:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Research and
development
|
|
|
4,347
|
|
|
|
3,616
|
|
|
|
12,506
|
|
|
|
9,781
|
|
|
Selling and
marketing
|
|
|
3,384
|
|
|
|
2,510
|
|
|
|
10,024
|
|
|
|
5,453
|
|
|
General and
administrative
|
|
|
16,721
|
|
|
|
7,502
|
|
|
|
37,070
|
|
|
|
22,116
|
|
|
Total operating
expenses
|
|
|
24,452
|
|
|
|
13,628
|
|
|
|
59,600
|
|
|
|
37,350
|
|
|
Loss from
operations
|
|
|
(24,088)
|
|
|
|
(11,643)
|
|
|
|
(53,597)
|
|
|
|
(35,308)
|
|
|
Interest
income
|
|
|
2
|
|
|
|
1
|
|
|
|
6
|
|
|
|
3
|
|
|
Interest
expense
|
|
|
(1,974)
|
|
|
|
(1,843)
|
|
|
|
(5,758)
|
|
|
|
(5,372)
|
|
|
Other (expense)
income, net
|
|
|
(6,792)
|
|
|
|
2,269
|
|
|
|
(307)
|
|
|
|
(6,853)
|
|
|
Loss before provision
for income taxes
|
|
$
|
(32,852)
|
|
|
$
|
(11,216)
|
|
|
$
|
(59,656)
|
|
|
$
|
(47,530)
|
|
|
Provision for income
taxes
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
Net loss and
comprehensive loss
|
|
$
|
(32,852)
|
|
|
$
|
(11,216)
|
|
|
$
|
(59,656)
|
|
|
$
|
(47,530)
|
|
|
Amortization of
beneficial conversion feature related to Series A
convertible preferred stock
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
(2,728)
|
|
|
$
|
—
|
|
|
Net loss attributable
to common stockholders, basic and diluted
|
|
$
|
(32,852)
|
|
|
$
|
(11,216)
|
|
|
$
|
(62,384)
|
|
|
$
|
(47,530)
|
|
|
Net loss per share,
basic and diluted
|
|
$
|
(0.39)
|
|
|
$
|
(0.19)
|
|
|
$
|
(0.82)
|
|
|
$
|
(0.85)
|
|
|
Weighted-average
common shares used to compute net loss per
share
attributable to common stockholders, basic and diluted
|
|
|
84,920,996
|
|
|
|
59,061,149
|
|
|
|
76,185,346
|
|
|
|
56,064,562
|
|
|
VIEWRAY,
INC.
|
|
Condensed
Consolidated Balance Sheets
|
|
(In thousands,
except share and per share data)
|
|
|
|
September
30,
2018
|
|
|
December
31,
2017(1)
|
|
|
|
(Unaudited)
|
|
|
|
|
|
|
ASSETS
|
|
|
|
|
|
|
|
|
|
Current
assets:
|
|
|
|
|
|
|
|
|
|
Cash and cash
equivalents
|
|
$
|
201,543
|
|
|
$
|
57,389
|
|
|
Accounts
receivable
|
|
|
22,677
|
|
|
|
20,326
|
|
|
Inventory
|
|
|
40,547
|
|
|
|
19,375
|
|
|
Deposits on purchased
inventory
|
|
|
5,565
|
|
|
|
7,043
|
|
|
Deferred cost of
revenue
|
|
|
10,909
|
|
|
|
13,696
|
|
|
Prepaid expenses and
other current assets
|
|
|
6,174
|
|
|
|
4,862
|
|
|
Total current
assets
|
|
|
287,415
|
|
|
|
122,691
|
|
|
Property and
equipment, net
|
|
|
13,452
|
|
|
|
11,564
|
|
|
Restricted
cash
|
|
|
1,381
|
|
|
|
1,143
|
|
|
Intangible assets,
net
|
|
|
-
|
|
|
|
78
|
|
|
Other
assets
|
|
|
1,185
|
|
|
|
235
|
|
|
TOTAL
ASSETS
|
|
$
|
303,433
|
|
|
$
|
135,711
|
|
|
LIABILITIES AND
STOCKHOLDERS' EQUITY
|
|
|
|
|
|
|
|
|
|
Current
liabilities:
|
|
|
|
|
|
|
|
|
|
Accounts
payable
|
|
$
|
6,964
|
|
|
$
|
11,014
|
|
|
Accrued
liabilities
|
|
|
13,880
|
|
|
|
7,207
|
|
|
Customer
deposits
|
|
|
12,243
|
|
|
|
17,820
|
|
|
Deferred revenue,
current portion
|
|
|
11,315
|
|
|
|
20,151
|
|
|
Total current
liabilities
|
|
|
44,402
|
|
|
|
56,192
|
|
|
Deferred revenue, net
of current portion
|
|
|
5,206
|
|
|
|
3,238
|
|
|
Long-term
debt
|
|
|
44,649
|
|
|
|
44,504
|
|
|
Warrant
liabilities
|
|
|
21,962
|
|
|
|
22,420
|
|
|
Other long-term
liabilities
|
|
|
9,854
|
|
|
|
7,370
|
|
|
TOTAL
LIABILITIES
|
|
|
126,073
|
|
|
|
133,724
|
|
|
Commitments and
contingencies
|
|
|
|
|
|
|
|
|
|
Stockholders'
equity:
|
|
|
|
|
|
|
|
|
|
Convertible Preferred
stock, par value $0.01 per share; 10,000,000
shares authorized at September 30, 2018 (unaudited)
and December 31, 2017; no shares
issued and outstanding at September 30, 2018
(unaudited) and December 31, 2017
|
|
|
—
|
|
|
|
—
|
|
|
Common stock, par
value of $0.01 per share; 300,000,000 shares
authorized at September 30, 2018 (unaudited) and
December 31, 2017; 95,195,872 and
67,653,974 shares issued and outstanding at September
30, 2018 (unaudited) and
December 31, 2017
|
|
|
941
|
|
|
|
666
|
|
|
Additional paid-in
capital
|
|
|
558,656
|
|
|
|
321,174
|
|
|
Accumulated
deficit
|
|
|
(382,237)
|
|
|
|
(319,853)
|
|
|
TOTAL STOCKHOLDERS'
EQUITY
|
|
|
177,360
|
|
|
|
1,987
|
|
|
TOTAL LIABILITIES AND
STOCKHOLDERS' EQUITY
|
|
$
|
303,433
|
|
|
$
|
135,711
|
|
|
|
(1) The
consolidated balance sheet as of December 31, 2017 was derived from
audited financial statements as of that date.
|
View original content to download
multimedia:http://www.prnewswire.com/news-releases/viewray-reports-third-quarter-2018-results-300747017.html
SOURCE ViewRay, Inc.