Invuity Reports 2017 Second Quarter, Six-Month Financial Results

Achieves revenue growth of 19% over prior year quarter
Updates 2017 revenue guidance

SAN FRANCISCO, July 25, 2017 (GLOBE NEWSWIRE) -- Invuity, Inc. (NASDAQ:IVTY), a leading medical technology company focused on minimal access surgery, today reported financial results for the three months and six months ended June 30, 2017.

Q2 2017 Highlights

• Revenue grew 19% to $9.8 million compared to revenue of $8.2 million in the 2016 second quarter.
• Approximately 825 hospitals purchased Invuity devices in the second quarter of 2017, up from 620 hospitals in the second quarter of 2016.
• Approximately 300,000 procedures have been performed using Invuity devices.

"We continued to experience positive underlying trends in our overall business during the second quarter as we added new accounts to our installed base and drove increased disposable usage. The PhotonBlade received an enthusiastic market reception during its trial commercialization phase, which supports our conviction regarding its future,” said President and CEO Philip Sawyer. “During the quarter, we initiated a voluntary withdrawal of PhotonBlade to enhance the design of the product prior to full commercial launch, which we anticipate will occur by the end of the third quarter. This withdrawal from the market has delayed our commercialization plans and as a result we are adjusting our guidance. We remain confident that we have a solid platform to drive long-term shareholder value.”

Financial Results

Revenue was $9.8 million in the second quarter of 2017, up 19% from revenue of $8.2 million in the second quarter of 2016 driven by an increase in active accounts.

Gross margin for the second quarter was 69.1%, which was negatively impacted by approximately 3.5% due to the voluntary recall of the PhotonBlade. Gross margin was 74.6% for the same period in 2016.

Total operating expenses for the second quarter were $16.6 million, compared to $15.8 million in the prior year period.

The net loss for the second quarter of 2017 was $10.4 million, or $0.61 loss per share, compared to a net loss of $10.1 million, or $0.76 loss per share, for the second quarter of 2016.

The Company's balance sheet as of June 30, 2017 included total cash, cash equivalents and short-term investments of $26.3 million.

Business Outlook

Invuity is adjusting its revenue guidance for 2017 to $40 million to $42 million from its previous revenue guidance of $42 million to $44 million.

Conference Call

Invuity's management will discuss the Company's financial results for the second quarter ended June 30, 2017, and provide a general business update during a conference call beginning at 2:00 p.m. Pacific Time / 5:00 p.m. Eastern Time today, July 25, 2017. To join the live call, participants may dial 1-877-556-8638 (U.S.) or 1-615-247-0174 (International), Conference ID: 51160313. To listen to the live call via Invuity's website, go to www.invuity.com, in the Events & Presentations section. A webcast replay of the call will be available following the conclusion of the call for a period of 90 days in the Events & Presentations section of the website.