ViewRay Reports Fourth Quarter and Full Year 2017 Financial Results

Published: Mar 12, 2018

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
 

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