ViewRay Reports Second Quarter 2018 Financial Results

Published: Aug 03, 2018

 

CLEVELAND, Aug. 3, 2018 /PRNewswire/ -- ViewRay Incorporated (Nasdaq: VRAY) today announced financial results for the second quarter ended June 30, 2018.

Second Quarter 2018 Highlights:

  • Total revenue of $16.4 million, primarily from 3 revenue units, up from $0.7 million in 2Q 2017.
  • Received new orders for MRIdian Systems totaling $34.6 million.
  • Total backlog grew year-over-year to approximately $200 million as of June 30, 2018, up from approximately $182 million as of June 30, 2017.

Recent Highlights:

  • Installed MRIdian Linac System at first community hospital in the United States.
  • 510(k) filed for MRIdian's SmartVISION­, the latest advances to further improve tumor and soft tissue visualization.
  • MRIdian System featured in 55 abstracts at the 2018 Annual Meeting of the American Association of Physicists in Medicine (AAPM).

Scott Drake, President and Chief Executive Officer stated, "I am excited to join the ViewRay team. With compelling early clinical data and our breakthrough MRIdian technology, we have a tremendous opportunity in front of us. We need to build infrastructure and organizational scale to progress from initial installations to seamless operations as we strive to better serve customers and treat cancer patients around the world."

Financial Results

Total revenue for the second quarter ended June 30, 2018 was $16.4 million, compared to $0.7 million for the same period last year. Revenue for the second quarter ended June 30, 2018 included 3 new MRIdian system installs or delivery, all recognized as product revenue.

Total cost of revenue was $16.4 million for the second quarter ended June 30, 2018, compared to $0.8 million for the same period last year. Total cost of revenue for the second quarter included a $2.7 million non-recurring inventory valuation adjustment related to obsolete Cobalt system inventory. Total gross profit for the second quarter ended June 30, 2018 was $0.1 million compared to ($0.1) million for the same period last year.

Total operating expenses for the second quarter ended June 30, 2018 were $18.3 million, compared to $12.6 million for the same period last year.

Net loss for the second quarter ended June 30, 2018 was $(22.0) million, or $(0.30) per share, compared to $(8.4) million, or $($0.15) per share, for the same period last year.

ViewRay had total cash and cash equivalents of $66.1 million at June 30, 2018, compared to $78.9 million as of March 31, 2018.

Financial Guidance

The Company is reiterating its financial guidance for the full year 2018. The Company anticipates 2018 total revenue to be in the range of $80 million to $90 million.

Conference Call and Webcast

ViewRay will hold a conference call on Friday, August 3, 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 3649078. 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 August 10, 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 3649078.

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 2018 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.


                                                                      Condensed Consolidated Statements of Operations and Comprehensive Loss
                                                                                  (In thousands, except share and per share data)
                                                                                                    (Unaudited)


                                                                                                                 Three Months Ended,                                 Six Months Ended,
                                                                                                                 -------------------                                 -----------------

                                                                                                         2018                                2017               2018                           2017
                                                                                                         ----                                ----               ----                           ----

    Gross Orders                                                                                                     $34,625                            $37,300                            $55,808           $49,610
                                                                                                                     -------                            -------                            -------           -------

    Backlog                                                                                                         $199,659                           $182,119                           $199,659          $182,119
                                                                                                                    --------                           --------                           --------          --------


    Revenue:

    Product                                                                                                          $15,366                       $          -                           $40,745     $           -

    Service                                                                                                              958                                579                              1,650             1,687

    Distribution Rights                                                                                                  119                                119                                238               238
                                                                                                                         ---                                ---                                ---               ---

    Total revenue                                                                                                     16,443                                698                             42,633             1,925

    Cost of revenue:

    Product                                                                                                           14,654                                328                             34,365               594

    Service                                                                                                            1,720                                498                              2,629             1,274
                                                                                                                       -----                                ---                              -----             -----

    Total cost of revenue                                                                                             16,374                                826                             36,994             1,868
                                                                                                                      ------                                ---                             ------             -----

    Gross margin                                                                                                          69                              (128)                             5,639                57

    Operating expenses:

    Research and development                                                                                           4,389                              3,251                              8,159             6,165

    Selling and marketing                                                                                              3,394                              1,871                              6,640             2,943

    General and administrative                                                                                        10,503                              7,463                             20,349            14,614
                                                                                                                      ------                              -----                             ------            ------

    Total operating expenses                                                                                          18,286                             12,585                             35,148            23,722
                                                                                                                      ------                             ------                             ------            ------

    Loss from operations                                                                                            (18,217)                          (12,713)                          (29,509)         (23,665)

    Interest income                                                                                                        2                                  1                                  4                 2

    Interest expense                                                                                                 (1,918)                           (1,792)                           (3,784)          (3,529)

    Other (expense) income, net                                                                                      (1,857)                             6,151                              6,485           (9,122)
                                                                                                                      ------                              -----                              -----            ------

    Loss before provision for income taxes                                                                         $(21,990)                          $(8,353)                         $(26,804)        $(36,314)

    Provision for income taxes                                                                                             -                                 -                                 -                -
                                                                                                                         ---                               ---                               ---              ---

    Net loss and comprehensive loss                                                                                $(21,990)                          $(8,353)                         $(26,804)        $(36,314)
                                                                                                                    ========                            =======                           ========          ========

    Amortization of beneficial conversion feature related to Series A                                       $              -                      $          -                          $(2,728)    $           -
    convertible preferred stock


    Net loss attributable to common stockholders, basic and diluted                                                $(21,990)                          $(8,353)                         $(29,532)        $(36,314)
                                                                                                                    ========                            =======                           ========          ========

    Net loss per share, basic and diluted                                                                            $(0.30)                           $(0.15)                           $(0.41)          $(0.67)
                                                                                                                      ======                             ======                             ======            ======

    Weighted-average common shares used to compute net loss per                                                   74,531,274                         57,230,403                         71,776,802        54,540,854

       share attributable to common stockholders, basic and diluted

 

 

                                                                                                                                               VIEWRAY, INC.

                                                                                                                                   Condensed Consolidated Balance Sheets
                                                                                                                              (In thousands, except share and per share data)


                                                                                                                                                                               June 30,             December 31,

                                                                                                                                                                                     2018                 2017(1)
                                                                                                                                                                                     ----                  ------

                                                                                                                                                                              (Unaudited)

    ASSETS

    Current assets:

    Cash and cash equivalents                                                                                                                                                               $66,143                  $57,389

    Accounts receivable                                                                                                                                                                      13,563                   20,326

    Inventory                                                                                                                                                                                28,570                   19,375

    Deposits on purchased inventory                                                                                                                                                           7,542                    7,043

    Deferred cost of revenue                                                                                                                                                                 15,683                   13,696

    Prepaid expenses and other current assets                                                                                                                                                 5,259                    4,862
                                                                                                                                                                                              -----                    -----

    Total current assets                                                                                                                                                                    136,760                  122,691

    Property and equipment, net                                                                                                                                                              13,587                   11,564

    Restricted cash                                                                                                                                                                           1,181                    1,143

    Intangible assets, net                                                                                                                                                                       68                       78

    Other assets                                                                                                                                                                                917                      235
                                                                                                                                                                                                ---                      ---

    TOTAL ASSETS                                                                                                                                                                           $152,513                 $135,711
                                                                                                                                                                                           ========                 ========

    LIABILITIES AND STOCKHOLDERS' EQUITY

    Current liabilities:

    Accounts payable                                                                                                                                                                         $7,574                  $11,014

    Accrued liabilities                                                                                                                                                                       7,650                    7,207

    Customer deposits                                                                                                                                                                        10,280                   17,820

    Deferred revenue, current portion                                                                                                                                                        15,540                   20,151
                                                                                                                                                                                             ------                   ------

    Total current liabilities                                                                                                                                                                41,044                   56,192

    Deferred revenue, net of current portion                                                                                                                                                  4,393                    3,238

    Long-term debt                                                                                                                                                                           44,599                   44,504

    Warrant liabilities                                                                                                                                                                      15,411                   22,420

    Other long-term liabilities                                                                                                                                                               9,100                    7,370
                                                                                                                                                                                              -----                    -----

    TOTAL LIABILITIES                                                                                                                                                                       114,547                  133,724
                                                                                                                                                                                            -------                  -------

    Commitments and contingencies

    Stockholders' equity:

    Convertible Preferred stock, par value $0.01 per share; 10,000,000                                                                                                                            -                       -
    shares authorized at June 30, 2018 (unaudited) and December 31, 2017; no shares
    issued and outstanding at June 30, 2018 (unaudited) and December 31, 2017

    Common stock, par value of $0.01 per share; 300,000,000 shares                                                                                                                              741                      666
    authorized at June 30, 2018 (unaudited) and December 31, 2017; 75,188,832 and
    67,653,974 shares issued and outstanding at June 30, 2018 (unaudited) and
    December 31, 2017

    Additional paid-in capital                                                                                                                                                              386,610                  321,174

    Accumulated deficit                                                                                                                                                                   (349,385)               (319,853)
                                                                                                                                                                                           --------                 --------

    TOTAL STOCKHOLDERS' EQUITY                                                                                                                                                               37,966                    1,987
                                                                                                                                                                                             ------                    -----

    TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY                                                                                                                                             $152,513                 $135,711
                                                                                                                                                                                           ========                 ========


    (1) The consolidated balance sheet as of December 31, 2017 was derived from audited financial statements as of that date.

 

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SOURCE ViewRay, Inc.

Company Codes: NASDAQ-NMS:VRAY

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