ViewRay Reports Third Quarter 2018 Results

CLEVELAND, Nov. 8, 2018 /PRNewswire/ -- ViewRay Incorporated (Nasdaq: VRAY) ("the Company") today announced financial results for the third quarter ended September 30, 2018.

(PRNewsfoto/ViewRay, Inc.)

Third Quarter 2018 Highlights:

  • Total revenue of $17.7 million, primarily from 3 revenue units.
  • Received new orders for MRIdian systems totaling $36.2 million. The backlog as of September 30, 2018 was $200.9 million.
  • The Company raised net proceeds of $161.9 million during the quarter from a common stock public offering.

"We have a tremendous opportunity to become the standard of care in radiation oncology. During the third quarter we made significant progress building our team and processes to capitalize, and much work lies ahead," said Scott Drake, President and CEO.

Third Quarter 2018 Results:
Total revenue for the three months, primarily from 3 MRIdian revenue units, was $17.7 million compared to $12.2 million for the same period last year.

Total cost of revenue was $17.3 million compared to $10.2 million for the same period last year.

Total gross profit was $0.4 million compared to $2.0 million for the same period last year.

Total operating expenses were $24.5 million, compared to $13.6 million for the same period last year. Operating expenses in 2018 include $5.0 million in severance expense for certain terminated executives.

Net loss was $(32.9) million, or $(0.39) per share, compared to $(11.2) million, or $($0.19) per share, for the same period last year. The net loss in 2018 includes $5.0 million of severance expense for certain terminated executives and $6.7 million related to a change in fair value of warrant liabilities.

Cash and cash equivalents were $201.5 million as of September 30, 2018, compared to $66.1 million as of June 30, 2018, primarily due to the equity financing in August of 2018.

Nine Month Results Ending September 30, 2018:
Total revenue for the nine months, primarily from 10 MRIdian revenue units, was $60.3 million compared to $14.1 million for the same period last year.

Total cost of revenue was $54.3 million compared to $12.1 million for the same period last year.

Total gross profit was $6.0 million compared to $2.0 million for the same period last year.

Total operating expenses were $59.6 million compared to $37.4 million for the same period last year.

Net loss was $(62.4) million, or $(0.82) per share, compared to $(47.5) million, or $(0.85) per share, for the same period last year.

Financial Guidance:
Due to an installation delay at a customer site, the Company now anticipates 2018 total revenue to be approximately $80 million.

Conference Call and Webcast

ViewRay will hold a conference call on Thursday, November 8, 2018 at 4:30 p.m. ET / 1:30 p.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 6190699. 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 November 15, 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 6190699.

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 third quarter and year to date 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 and its 2018 Quarterly Reports on Form 10-Q, as updated periodically with the company's other filings with the SEC. 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 September 30,

   

Nine Months Ended September 30,

 
   

2018

   

2017

   

2018

   

2017

 

Gross Orders

 

$

36,209

   

$

29,850

   

$

92,017

   

$

79,460

 

Backlog

 

$

200,868

   

$

194,769

   

$

200,868

   

$

194,769

 
                                 

Revenue:

                               

Product

 

$

16,492

   

$

11,358

   

$

57,237

   

$

11,358

 

Service

   

1,056

     

721

     

2,706

     

2,408

 

Distribution Rights

   

118

     

118

     

356

     

356

 

Total revenue

   

17,666

     

12,197

     

60,299

     

14,122

 

Cost of revenue:

                               

Product

   

15,199

     

9,728

     

49,564

     

10,322

 

Service

   

2,103

     

484

     

4,732

     

1,758

 

Total cost of revenue

   

17,302

     

10,212

     

54,296

     

12,080

 

Gross margin

   

364

     

1,985

     

6,003

     

2,042

 

Operating expenses:

                               

Research and development

   

4,347

     

3,616

     

12,506

     

9,781

 

Selling and marketing

   

3,384

     

2,510

     

10,024

     

5,453

 

General and administrative

   

16,721

     

7,502

     

37,070

     

22,116

 

Total operating expenses

   

24,452

     

13,628

     

59,600

     

37,350

 

Loss from operations

   

(24,088)

     

(11,643)

     

(53,597)

     

(35,308)

 

Interest income

   

2

     

1

     

6

     

3

 

Interest expense

   

(1,974)

     

(1,843)

     

(5,758)

     

(5,372)

 

Other (expense) income, net

   

(6,792)

     

2,269

     

(307)

     

(6,853)

 

Loss before provision for income taxes

 

$

(32,852)

   

$

(11,216)

   

$

(59,656)

   

$

(47,530)

 

Provision for income taxes

   

     

     

     

 

Net loss and comprehensive loss

 

$

(32,852)

   

$

(11,216)

   

$

(59,656)

   

$

(47,530)

 

Amortization of beneficial conversion feature related to Series A
convertible preferred stock

 

$

   

$

   

$

(2,728)

   

$

 

Net loss attributable to common stockholders, basic and diluted

 

$

(32,852)

   

$

(11,216)

   

$

(62,384)

   

$

(47,530)

 

Net loss per share, basic and diluted

 

$

(0.39)

   

$

(0.19)

   

$

(0.82)

   

$

(0.85)

 

Weighted-average common shares used to compute net loss per

   share attributable to common stockholders, basic and diluted

   

84,920,996

     

59,061,149

     

76,185,346

     

56,064,562

 

 

 

VIEWRAY, INC.

Condensed Consolidated Balance Sheets

(In thousands, except share and per share data)

 
   

September 30,

2018

   

December 31,

2017(1)

 
   

(Unaudited)

         

ASSETS

               

Current assets:

               

Cash and cash equivalents

 

$

201,543

   

$

57,389

 

Accounts receivable

   

22,677

     

20,326

 

Inventory

   

40,547

     

19,375

 

Deposits on purchased inventory

   

5,565

     

7,043

 

Deferred cost of revenue

   

10,909

     

13,696

 

Prepaid expenses and other current assets

   

6,174

     

4,862

 

Total current assets

   

287,415

     

122,691

 

Property and equipment, net

   

13,452

     

11,564

 

Restricted cash

   

1,381

     

1,143

 

Intangible assets, net

   

-

     

78

 

Other assets

   

1,185

     

235

 

TOTAL ASSETS

 

$

303,433

   

$

135,711

 

LIABILITIES AND STOCKHOLDERS' EQUITY

               

Current liabilities:

               

Accounts payable

 

$

6,964

   

$

11,014

 

Accrued liabilities

   

13,880

     

7,207

 

Customer deposits

   

12,243

     

17,820

 

Deferred revenue, current portion

   

11,315

     

20,151

 

Total current liabilities

   

44,402

     

56,192

 

Deferred revenue, net of current portion

   

5,206

     

3,238

 

Long-term debt

   

44,649

     

44,504

 

Warrant liabilities

   

21,962

     

22,420

 

Other long-term liabilities

   

9,854

     

7,370

 

TOTAL LIABILITIES

   

126,073

     

133,724

 

Commitments and contingencies

               

Stockholders' equity:

               

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

   

     

 

Common stock, par value of $0.01 per share; 300,000,000 shares 
     
authorized at September 30, 2018 (unaudited) and December 31, 2017; 95,195,872 and 
     
67,653,974 shares issued and outstanding at September 30, 2018 (unaudited) and 
     
December 31, 2017

   

941

     

666

 

Additional paid-in capital

   

558,656

     

321,174

 

Accumulated deficit

   

(382,237)

     

(319,853)

 

TOTAL STOCKHOLDERS' EQUITY

   

177,360

     

1,987

 

TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY

 

$

303,433

   

$

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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