CLEVELAND, May 2, 2019 /PRNewswire/ -- ViewRay, Inc.
(Nasdaq: VRAY) today announced financial results for the first
quarter ended March 31, 2019.
First Quarter 2019 Highlights:
- Received 7 new orders for MRIdian systems totaling $42.8 million, compared to 3 orders totaling
$21.2 million in the first quarter of
2018.
- Total revenue of $20.3 million,
primarily from 3 revenue units and 1 system upgrade, compared to
$26.2 million, primarily from 4
revenue units and 1 system upgrade, in the first quarter of
2018.
- Total backlog increased to $237.5
million as of March 31, 2019,
from $212.3 million as of
December 31, 2018.
- Cash and cash equivalents were $145.8
million as of March 31,
2019.
"Our first quarter results are a solid start to the year and
reflect progress on our commercial, innovation, and clinical
pipelines," said Scott Drake,
President and CEO. "We are well-positioned to execute in 2019 and
are focused on becoming the standard of care in radiation
oncology."
First Quarter 2019 Financial Results:
Total revenue for the three months was $20.3 million,
compared to $26.2 million for the
same period last year.
Total cost of revenue was $25.7
million, compared to $20.6
million for the same period last year. Total cost of revenue
in the first quarter of 2019 was impacted by approximately
$7.0 million of charges, primarily
driven by higher than anticipated installation costs related to
historical upgrade commitments. The $7.0
million includes $5.6 million
of one-time charges and $1.4 million
of expenses.
Total gross profit was $(5.4)
million, compared to $5.6
million for the same period last year.
Total operating expenses were $25.0
million, compared to $16.9
million for the same period last year.
Net loss was $33.4 million, or
$0.34 per share, compared to
$7.5 million, or $0.11 per share, for the same period last
year.
ViewRay had total cash and cash equivalents of $145.8 million at March
31, 2019.
Financial Guidance:
The Company is reiterating its financial guidance for the full
year 2019. The Company anticipates 2019 total revenue to be in the
range of $111 million to $124 million, and total cash usage to be in the
range of $65-$75 million.
Conference Call and Webcast
ViewRay will hold a conference call to discuss results on
Thursday, May 2, 2019 at 4:30 p.m. ET / 1:30 p.m.
PT. The dial-in numbers are (844) 277-1426 for domestic
callers and (336) 525-7129 for international callers. The
conference ID number is 8616638. 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 May 9, 2019. 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
8616638.
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 2019 and ViewRay's conference call to discuss its first
quarter 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, 2018 and its Quarterly Report on
Form 10-Q for the fiscal quarter ended March
31, 2019, as updated periodically by 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.
|
Consolidated
Statements of Operations and Comprehensive Loss
|
(In thousands,
except share and per share data)
|
|
|
|
|
|
|
Three Months Ended
March 31,
|
|
|
|
2019
|
|
|
2018
|
|
Revenue:
|
|
|
|
|
|
|
|
|
Product
|
|
$
|
18,874
|
|
|
$
|
25,379
|
|
Service
|
|
|
1,291
|
|
|
|
692
|
|
Distribution
rights
|
|
|
119
|
|
|
|
119
|
|
Total
revenue
|
|
|
20,284
|
|
|
|
26,190
|
|
Cost of
revenue:
|
|
|
|
|
|
|
|
|
Product
|
|
|
22,033
|
|
|
|
19,711
|
|
Service
|
|
|
3,615
|
|
|
|
909
|
|
Total cost of
revenue
|
|
|
25,648
|
|
|
|
20,620
|
|
Gross
margin
|
|
|
(5,364)
|
|
|
|
5,570
|
|
Operating
expenses:
|
|
|
|
|
|
|
|
|
Research and
development
|
|
|
5,031
|
|
|
|
3,770
|
|
Selling and
marketing
|
|
|
4,885
|
|
|
|
3,246
|
|
General and
administrative
|
|
|
15,109
|
|
|
|
9,846
|
|
Total operating
expenses
|
|
|
25,025
|
|
|
|
16,862
|
|
Loss from
operations
|
|
|
(30,389)
|
|
|
|
(11,292)
|
|
Interest
income
|
|
|
220
|
|
|
|
2
|
|
Interest
expense
|
|
|
(759)
|
|
|
|
(1,866)
|
|
Other (expense)
income, net
|
|
|
(2,433)
|
|
|
|
8,342
|
|
Loss before provision
for income taxes
|
|
$
|
(33,361)
|
|
|
$
|
(4,814)
|
|
Provision for income
taxes
|
|
|
—
|
|
|
|
—
|
|
Net loss and
comprehensive loss
|
|
$
|
(33,361)
|
|
|
$
|
(4,814)
|
|
Amortization of
beneficial conversion feature related to Series A convertible
preferred
stock
|
|
$
|
—
|
|
|
$
|
(2,728)
|
|
Net loss attributable
to common stockholders, basic and diluted
|
|
$
|
(33,361)
|
|
|
$
|
(7,542)
|
|
Net loss per share,
basic and diluted
|
|
$
|
(0.34)
|
|
|
$
|
(0.11)
|
|
Weighted-average
common shares used to compute net loss per
share
attributable to common stockholders, basic and diluted
|
|
|
96,741,309
|
|
|
|
68,943,918
|
|
VIEWRAY,
INC.
|
Consolidated
Balance Sheets
|
(In thousands,
except share and per share data)
|
|
|
|
|
|
|
|
|
|
March
31,
2019
|
|
|
December
31,
2018
|
|
ASSETS
|
|
|
|
|
|
|
|
|
Current
assets:
|
|
|
|
|
|
|
|
|
Cash and cash
equivalents
|
|
$
|
145,797
|
|
|
$
|
167,432
|
|
Accounts
receivable
|
|
|
27,432
|
|
|
|
36,867
|
|
Inventory
|
|
|
65,140
|
|
|
|
49,462
|
|
Deposits on purchased
inventory
|
|
|
7,642
|
|
|
|
8,142
|
|
Deferred cost of
revenue
|
|
|
4,342
|
|
|
|
9,736
|
|
Prepaid expenses and
other current assets
|
|
|
9,060
|
|
|
|
6,045
|
|
Total current
assets
|
|
|
259,413
|
|
|
|
277,684
|
|
Property and
equipment, net
|
|
|
15,279
|
|
|
|
13,958
|
|
Restricted
cash
|
|
|
1,382
|
|
|
|
1,933
|
|
Right-of-use
assets
|
|
|
12,055
|
|
|
|
—
|
|
Other
assets
|
|
|
1,496
|
|
|
|
1,395
|
|
TOTAL
ASSETS
|
|
$
|
289,625
|
|
|
$
|
294,970
|
|
LIABILITIES AND
STOCKHOLDERS' EQUITY
|
|
|
|
|
|
|
|
|
Current
liabilities:
|
|
|
|
|
|
|
|
|
Accounts
payable
|
|
$
|
17,891
|
|
|
$
|
10,207
|
|
Accrued
liabilities
|
|
|
16,207
|
|
|
|
9,983
|
|
Customer
deposits
|
|
|
14,905
|
|
|
|
19,968
|
|
Operating lease
liability, current
|
|
|
1,284
|
|
|
|
—
|
|
Deferred revenue,
current
|
|
|
10,287
|
|
|
|
13,731
|
|
Total current
liabilities
|
|
|
60,574
|
|
|
|
53,889
|
|
Deferred revenue, net
of current portion
|
|
|
5,507
|
|
|
|
5,744
|
|
Long-term
debt
|
|
|
55,402
|
|
|
|
55,364
|
|
Warrant
liabilities
|
|
|
14,872
|
|
|
|
11,844
|
|
Operating lease
liability, noncurrent
|
|
|
11,491
|
|
|
|
—
|
|
Other long-term
liabilities
|
|
|
303
|
|
|
|
820
|
|
TOTAL
LIABILITIES
|
|
|
148,149
|
|
|
|
127,661
|
|
Commitments and
contingencies
|
|
|
|
|
|
|
|
|
Stockholders'
equity:
|
|
|
|
|
|
|
|
|
Convertible preferred
stock, par value of $0.01 per share; 10,000,000 shares
authorized
at March 31, 2019 and December 31,
2018; no shares issued and outstanding
at March 31, 2019 and December 31,
2018
|
|
|
—
|
|
|
|
—
|
|
Common stock, par
value of $0.01 per share; 300,000,000 shares authorized
at March 31, 2019 and
December 31, 2018; 96,933,098 and 96,332,023
shares issued and outstanding
at March 31, 2019 and December 31, 2018
|
|
|
959
|
|
|
|
952
|
|
Additional paid-in
capital
|
|
|
572,855
|
|
|
|
565,334
|
|
Accumulated
deficit
|
|
|
(432,338)
|
|
|
|
(398,977)
|
|
TOTAL STOCKHOLDERS'
EQUITY
|
|
|
141,476
|
|
|
|
167,309
|
|
TOTAL LIABILITIES AND
STOCKHOLDERS' EQUITY
|
|
$
|
289,625
|
|
|
$
|
294,970
|
|
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SOURCE ViewRay, Inc.