ViewRay Reports Fourth Quarter and Full Year 2017 Financial Results
CLEVELAND, March 12, 2018 /PRNewswire/ -- ViewRay Incorporated (Nasdaq: VRAY) today announced financial results for the fourth quarter and full year ended December 31, 2017.
Full Year 2017 Highlights:
- Total revenue of $34.0 million, primarily from six revenue units, up from $22.2 million, primarily from four revenue units, in 2016.
- Received new orders for MRIdian Systems totaling $113.6 million, up from new orders totaling $77.0 million in 2016.
- Total backlog grew to a record $203.6 million, as of December 31, 2017, up from $133.2 million, as of December 31, 2016.
Fourth Quarter 2017 Highlights:
- Total revenue of $19.9 million, primarily from four revenue units, up from $16.1 million, primarily from three revenue units, in Q4 2016.
- Received new orders for MRIdian Systems totaling $34.1 million, up from new orders totaling $24.3 million in Q4 2016.
Financing:
- On March 5, 2018, the Company closed a direct registered equity offering with an affiliate of Fosun International Limited for aggregate gross proceeds of approximately $59.1 million.
"2017 was a pivotal year for ViewRay, during which we received FDA clearance for the MRIdian Linac and generated substantial growth in new orders and backlog, and recognized revenue for six MRIdian Linac systems," said Chris A. Raanes, president and chief executive officer of ViewRay. "We are well positioned in 2018 to drive continued growth in new orders and installations of our MRIdian Linac System."
Financial Results
Total revenue for the fiscal fourth quarter ended December 31, 2017 was $19.9 million, compared to $16.1 million for the same period last year. Total revenue for the full year 2017 was $34.0 million, compared to $22.2 million for the full year 2016.
Cost of product revenue was $15.2 million for the fiscal quarter ended December 31, 2017, compared to $17.0 million for the same period last year. Cost of product revenue was $25.5 million for the full year 2017, compared to $23.9 million for the full year 2016.
Total gross profit (loss) for the fiscal quarter ended December 31, 2017 was $4.3 million, compared to $(1.2) million for the same period last year. Total gross profit (loss) for the full year 2017 was $6.3 million, compared to $(3.6) million for the full year 2016.
Total operating expenses for the fiscal quarter ended December 31, 2017 were $17.1 million, compared to $9.3 million for the same period last year. Total operating expenses for the full year 2017 were $54.5 million, compared to $40.5 million for the same period last year.
Net loss for the fiscal quarter ended December 31, 2017 was $(24.6) million, or $(0.38) per share, compared to $(11.0) million, or $(0.25) per share, for the same period last year. Net loss for the full year 2017 was $(72.2) million, or $(1.23) per share, compared to $(50.6) million, or $(1.26) per share, for the full year 2016.
ViewRay had total cash and cash equivalents of $57.4 million at December 31, 2017.
Financial Guidance
For the full year 2018, ViewRay anticipates total revenue to be in the range of $80 million to $90 million.
Conference Call and Webcast
ViewRay will hold a conference call on Monday, March 12, 2018 at 8:30 a.m. ET / 5:30 a.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 7167178. 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 March 19, 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 7167178.
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 fourth quarter and full year 2017 financial 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. 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 December 31, Year Ended December 31,
------------------------------- -----------------------
2017 2016 2017 2016
---- ---- ---- ----
Gross Orders $34,125 $24,270 $113,585 $77,050
------- ------- -------- -------
Backlog $203,625 $133,160 $203,625 $133,160
-------- -------- -------- --------
Revenue:
Product $19,100 $15,315 $30,458 $20,555
Service 701 691 3,109 1,504
Distribution Rights 119 119 475 178
--- --- --- ---
Total revenue 19,920 16,125 34,042 22,237
Cost of revenue:
Product 15,166 17,028 25,488 23,897
Service 464 264 2,222 1,969
--- --- ----- -----
Total cost of revenue 15,630 17,292 27,710 25,866
------ ------ ------ ------
Gross margin 4,290 (1,167) 6,332 (3,629)
Operating expenses:
Research and development 4,928 2,425 14,709 11,442
Selling and marketing 2,959 1,350 8,412 5,601
General and administrative 9,259 5,566 31,375 23,503
----- ----- ------ ------
Total operating expenses 17,146 9,341 54,496 40,546
------ ----- ------ ------
Loss from operations (12,856) (10,508) (48,164) (44,175)
Interest income 2 - 5 2
Interest expense (1,875) (1,785) (7,247) (5,951)
Other (expense) income, net (9,917) 1,286 (16,770) (512)
------ ----- ------- ----
Loss before provision for income taxes $(24,646) $(11,007) $(72,176) $(50,636)
Provision for income taxes - - - -
--- --- --- ---
Net loss and comprehensive loss $(24,646) $(11,007) $(72,176) $(50,636)
======== ======== ======== ========
Net loss per share, basic and diluted $(0.38) $(0.25) $(1.23) $(1.26)
====== ====== ====== ======
Weighted-average common shares used to compute net loss per 65,559,744 43,502,692 58,457,868 40,068,307
share attributable to common stockholders, basic and diluted
VIEWRAY, INC.
Consolidated Balance Sheets
(In thousands, except share and per share data)
December 31, December 31,
2017 2016
---- ----
ASSETS
Current assets:
Cash and cash equivalents $57,389 $14,198
Accounts receivable 20,326 4,200
Inventory 19,375 8,082
Deposits on purchased inventory 7,043 2,522
Deferred cost of revenue 13,696 3,909
Prepaid expenses and other current assets 4,862 3,023
----- -----
Total current assets 122,691 35,934
Property and equipment, net 11,564 11,560
Restricted cash 1,143 1,143
Intangible assets, net 78 97
Other assets 235 30
--- ---
TOTAL ASSETS $135,711 $48,764
======== =======
LIABILITIES AND STOCKHOLDERS EQUITY (DEFICIT)
Current liabilities:
Accounts payable $11,014 $4,980
Accrued liabilities 7,207 6,334
Customer deposits 17,820 19,400
Deferred revenue, current portion 20,151 6,515
------ -----
Total current liabilities 56,192 37,229
Deferred revenue, net of current portion 3,238 3,918
Long-term debt 44,504 44,290
Warrant liability 22,420 2,723
Other long-term liabilities 7,370 4,257
----- -----
TOTAL LIABILITIES 133,724 92,417
------- ------
Commitments and contingencies
Stockholders' equity (deficit):
Convertible Preferred stock, par value $0.01 per share; 10,000,000 - -
shares authorized at December 31, 2017 and December 31, 2016; no shares
issued and outstanding at December 31, 2017 and December 31, 2016
Common stock, par value of $0.01 per share; 300,000,000 shares 666 426
authorized at December 31, 2017 and December 31, 2016; 67,653,974 and
43,581,184 shares issued and outstanding at December 31, 2017 and
December 31, 2016
Additional paid-in capital 321,174 203,598
Accumulated deficit (319,853) (247,677)
-------- --------
TOTAL STOCKHOLDERS' EQUITY (DEFICIT) 1,987 (43,653)
----- -------
TOTAL LIABILITIES AND STOCKHOLDERS' DEFICIT $135,711 $48,764
======== =======
CONTACT: Investor Relations: Ajay Bansal , Chief Financial Officer , 1-844-MRIdian (674-3426) ; Media Enquiries: Michael Saracen , Vice President, Marketing , Phone: +1 408-242-2994 , Email: media@viewray.com
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SOURCE ViewRay, Inc.
Company Codes: NASDAQ-NMS:VRAY |