ViewRay Reports Third Quarter 2020 Results

CLEVELAND, Nov. 5, 2020 /PRNewswire/ -- ViewRay, Inc. (Nasdaq: VRAY) (the "Company") today announced financial results for the third quarter ended September 30, 2020.

Third Quarter 2020 Highlights:

  • Total revenue of $10.1 million, primarily from one revenue unit, compared to $20.9 million, primarily from three revenue units, in the third quarter of 2019.
  • Received four new orders for MRIdian systems totaling $23.4 million, compared to eight new orders totaling $34.9 million in the third quarter of 2019.
  • Total backlog was $238.9 million as of September 30, 2020, compared to $230.7 million as of September 30, 2019.
  • Cash and cash equivalents were $163.9 million as of September 30, 2020.
  • Effective October 30, 2020, the Company amended its term loan with Silicon Valley Bank, deferring amortization until November 2022. Included in the amendment was an expansion of the facility from $56 million to $58 million, the extension of maturity from December 2023 to November 2025, and other improvements to the interest rate and select covenants.

"We are pleased with our third quarter results in light of the economic backdrop," said Scott Drake, President and CEO. "MRIdian's clinical, strategic, and economic value propositions are resonating with customers. We received four orders in Q3, including an order from the Veterans Administration, which was a first for ViewRay. We look forward to partnering with the VA to provide the benefits of MRIdian to our nation's heroes. In addition, we continue to demonstrate fiscal discipline on operating expenses and working capital, and today announced the amendment of our term loan which extends maturity and defers amortization payments until late 2022."

Three Months Ended September 30, 2020 Financial Results:

Total revenue for the three months ended September 30, 2020 was $10.1 million compared to $20.9 million for the same period last year.

Total cost of revenue for the three months ended September 30, 2020 was $11.2 million compared to $20.3 million for the same period last year.

Total gross profit (loss) for the three months ended September 30, 2020 was $(1.1) million, compared to $0.6 million for the same period last year.

Total operating expenses for the three months ended September 30, 2020 were $23.9 million, compared to $32.3 million for the same period last year.

Net loss for the three months ended September 30, 2020 was $28.1 million, or $0.19 per share, compared to $20.8 million, or $0.21 per share, for the same period last year.

ViewRay had total cash and cash equivalents of $163.9 million at September 30, 2020.

Nine Months Ended September 30, 2020 Financial Results:

Total revenue for the nine months ended September 30, 2020 was $38.6 million compared to $71.3 million for the same period last year.

Total cost of revenue for the nine months ended September 30, 2020 was $42.8 million compared to $72.9 million for the same period last year.

Total gross profit (loss) for the nine months ended September 30, 2020 was $(4.2) million compared to $(1.5) million for the same period last year.

Total operating expenses for the nine months ended September 30, 2020 were $76.4 million, compared to $86.9 million for the same period last year.

Net loss for the nine months ended September 30, 2020 was $81.8 million, or $0.55 per share, compared to $85.0 million, or $0.87 per share, for the same period last year.

Conference Call and Webcast

The dial-in numbers are (844) 277-1426 for domestic callers and (336) 525-7129 for international callers. The conference ID number is 9819479. A live webcast of the conference call will be available on the investor relations page of ViewRay's corporate website at http://investors.viewray.com/events-and-presentations/upcoming-events.

After the live webcast, a replay will remain available online on the investor relations page of ViewRay's website, under "Financial Events and Webinars", for 14 days following the call. In addition, a telephonic replay of the call will be available until November 12, 2020. 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 9819479.

About ViewRay®

ViewRay, Inc. (Nasdaq: VRAY), designs, manufactures, and markets the MRIdian® MR-Guided 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 purpose-built to address specific challenges, including beam distortion, skin toxicity, and other concerns that potentially may 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 preliminary third quarter results and anticipated future operating and financial performance, and ViewRay's conference call to discuss its third quarter 2020 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, the timing of delivery of ViewRay's products, the timing, length, and severity of the recent COVID-19 (coronavirus) pandemic, including its impacts across our businesses on demand, operations and our global supply chains, the 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, 2019 and its 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.

Consolidated Statements of Operations and Comprehensive Loss

(Unaudited)

(In thousands, except share and per share data)

 
   

Three Months Ended
September
30,

   

Nine Months Ended
September
30,

 
   

2020

   

2019

   

2020

   

2019

 

Revenue:

                               

Product

 

$

6,210

   

$

18,696

   

$

28,295

   

$

65,475

 

Service

   

3,758

     

2,048

     

9,909

     

5,482

 

Distribution rights

   

118

     

118

     

356

     

356

 

Total revenue

   

10,086

     

20,862

     

38,560

     

71,313

 

Cost of revenue:

                               

Product

   

8,550

     

18,521

     

34,393

     

63,368

 

Service

   

2,600

     

1,767

     

8,380

     

9,489

 

Total cost of revenue

   

11,150

     

20,288

     

42,773

     

72,857

 

Gross margin

   

(1,064)

     

574

     

(4,213)

     

(1,544)

 

Operating expenses:

                               

Research and development

   

5,245

     

5,641

     

17,793

     

17,135

 

Selling and marketing

   

2,669

     

7,297

     

11,585

     

19,845

 

General and administrative

   

16,031

     

19,381

     

47,046

     

49,888

 

Total operating expenses

   

23,945

     

32,319

     

76,424

     

86,868

 

Loss from operations

   

(25,009)

     

(31,745)

     

(80,637)

     

(88,412)

 

Interest income

   

5

     

484

     

787

     

1,391

 

Interest expense

   

(1,074)

     

(1,069)

     

(3,183)

     

(2,902)

 

Other (expense) income, net

   

(2,047)

     

11,499

     

1,224

     

4,933

 

Loss before provision for income taxes

 

$

(28,125)

   

$

(20,831)

   

$

(81,809)

   

$

(84,990)

 

Provision for income taxes

   

     

     

     

 

Net loss and comprehensive loss

 

$

(28,125)

   

$

(20,831)

   

$

(81,809)

   

$

(84,990)

 

Net loss per share, basic and diluted

 

$

(0.19)

   

$

(0.21)

   

$

(0.55)

   

$

(0.87)

 

Weighted-average common shares used to compute net loss per

share attributable to common stockholders, basic and diluted

   

148,042,972

     

99,039,789

     

147,683,344

     

97,763,964

 

 

VIEWRAY, INC.

Consolidated Balance Sheets

(Unaudited)

(In thousands, except share and per share data)

 
   

September 30, 2020

   

December 31, 2019

 

ASSETS

               

Current assets:

               

Cash and cash equivalents

 

$

163,881

   

$

226,783

 

Accounts receivable

   

26,548

     

16,817

 

Inventory

   

46,456

     

55,031

 

Deposits on purchased inventory

   

4,254

     

6,457

 

Deferred cost of revenue

   

8,705

     

3,466

 

Prepaid expenses and other current assets

   

4,659

     

3,310

 

Total current assets

   

254,503

     

311,864

 

Property and equipment, net

   

22,533

     

23,399

 

Restricted cash

   

1,460

     

1,404

 

Intangible assets, net

   

51

     

55

 

Right-of-use assets

   

10,055

     

11,720

 

Other assets

   

1,485

     

1,577

 

TOTAL ASSETS

 

$

290,087

   

$

350,019

 

LIABILITIES AND STOCKHOLDERS' EQUITY

               

Current liabilities:

               

Accounts payable

 

$

7,607

   

$

13,739

 

Accrued liabilities

   

17,966

     

21,390

 

Customer deposits

   

16,080

     

9,662

 

Operating lease liability, current

   

2,251

     

2,264

 

Current portion of long-term debt

   

15,556

     

1,556

 

Deferred revenue, current

   

21,838

     

10,457

 

Total current liabilities

   

81,298

     

59,068

 

Deferred revenue, net of current portion

   

2,884

     

3,553

 

Long-term debt

   

40,134

     

53,995

 

Warrant liabilities

   

4,092

     

5,373

 

Operating lease liability, noncurrent

   

8,816

     

10,479

 

Other long-term liabilities

   

1,827

     

1,377

 

TOTAL LIABILITIES

   

139,051

     

133,845

 

Commitments and contingencies (Note 6)

               

Stockholders' equity:

               

Preferred stock, par value of $0.01 per share; 10,000,000 shares authorized
at September 30, 2020 and December 31, 2019; no shares issued and outstanding
at September 30, 2020 and December 31, 2019

   

     

 

Common stock, par value of $0.01 per share; 300,000,000 shares authorized at
September 30, 2020 and December 31, 2019; 147,954,426 and 147,191,695 shares
issued and outstanding at September 30, 2020 and December 31, 2019

   

1,469

     

1,462

 

Additional paid-in capital

   

750,552

     

733,888

 

Accumulated deficit

   

(600,985)

     

(519,176)

 

TOTAL STOCKHOLDERS' EQUITY

   

151,036

     

216,174

 

TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY

 

$

290,087

   

$

350,019

 

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SOURCE ViewRay Incorporated


Company Codes: NASDAQ-NMS:VRAY

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