InspireMD Ltd. Announces First Quarter 2012 Financial Results

Published: May 08, 2012

TEL AVIV, Israel, May 8, 2012 /PRNewswire/ -- InspireMD, Inc. (OTC BB: NSPR) (the "Company" or "InspireMD"), a medical device company focusing on the development and commercialization of its proprietary stent platform technology for use in patients with Acute Myocardial Infarctions, today announced financial results for the quarter ended March 31st 2012.

Ofir Paz, Co-Founder and CEO of InspireMD, said: "The quarter was marked by continued positive momentum across financial, operational and clinical areas. Demand for MGuard increased in the majority of our international markets. We strengthened our senior management, and additional positive data on MGuard was reported. We also recently raised gross proceeds of $11 million in a private placement, which strengthened our balance sheet for the global launch of MGuard."

Eli Bar, Vice President of R&Dadded: "We continue to make excellent progress in the MASTER trial, which is now more than 85% enrolled. We remain committed to completing enrollment in the second quarter and releasing preliminary top line results in the third quarter of 2012. A successful outcome in this trial could lead to MGuard becoming the standard of care for patients with acute myocardial infarctions."

Financial Highlights

  • Total revenue for the three months ended March 31, 2012 was $1.1 million, compared with approximately $1.7 million during the same period in 2011.
  • The decrease in revenue year over year was mainly attributable to a one time order of approximately $1.2 million by the Company's distributor in India during the first three months of 2011 that the Company did not receive in 2012.
  • Shipments to other countries (excluding India) during the three months ended March 31, 2012 increased by approximately $0.6 million, or 113.9%, compared to the same period in 2011. Sales of MGuard increased in the majority of the Company's major markets during the three months ended March 31, 2012, including Mexico, Israel, Germany, Poland and the Netherlands compared to the same period in 2011.
  • Gross profit in the quarter was $0.6 million, a decrease of 28.3% or approximately $0.2 million, from $0.8 million during the same period in 2011. The gross margin in the quarter increased to 49.6% from 46.7% during the same period in 2011.
  • Total operating expenses were $3.7 million, compared to $2.0 million in the same period of 2011. This increase was mainly driven by share-based compensation of $0.8 million, increased R&D expenditures relating to the MASTER trial and planned FDA trials of $0.8 million, and other expenses of $0.1 million.
  • Loss from operations in the quarter was $3.1 million, compared to a loss from operations of $1.2 million in the comparable period in 2011.
  • The net loss for the quarter was $3.1 million, or $0.05 per weighted average share, compared to a net loss of $1.9 million in the comparable period in 2011.
  • The Company ended the quarter with cash and cash equivalents of approximately $3.4 million, as compared to $5.1 million as of December 31, 2011.

Achievements in 1Q 2012

  • Enrollment continued in the MASTER Trial which is comparing MGuard with the standard of care in STEMI patients. As of May 4, 2012, 370 patients (out of 432 planned) were enrolled.
  • Positive clinical results were reported from the MICAMI trial of MGuard at the Cardiovascular Research Technologies (CRT) conference in Washington D.C. This randomized controlled trial showed a significant improvement in microvascular reperfusion for MGuard vs. bare metal stents.
  • Dr. James Barry was appointed to the Board of Directors as an independent director. Dr. Barry is a former senior executive at Boston Scientific and has a proven track record of bringing high value medical technology products to market.
  • Robert Ratini was appointed as Vice President of Sales and Marketing. Mr. Ratini will develop and lead all global marketing strategies for InspireMD's proprietary stent system technology, MGuard.

Recent (Post Period) Developments

  • On April 5, 2012, the Company completed a private placement with two institutional investors resulting in gross proceeds (before deducting commissions and expenses) of $11.0 million.

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