CAESAREA, Israel, Nov. 13, 2015 /PRNewswire/ -- LabStyle Innovations Corp. (OTCQB: DRIO), developer of the Dario Diabetes Management Solution, today reported financial and operational results for the three months ended September 30, 2015 and provided an outlook for the coming quarters.
“We are very pleased to report strong growth in revenues, product shipments, and software services, as well as a significant reduction in net and EBITDA loss. Users in markets including Australia and Canada have reported an exceedingly high level of satisfaction with the Dario when monitoring their daily glucose levels. This customer satisfaction rate corresponds with the Dario’s rapid market penetration, strong consumer demand, and accelerating revenue growth in Australia where the Dario launched in March. The Canadian market, where we launched in June, is showing a similar pattern,” stated Erez Raphael, LabStyle’s President and Chief Executive Officer.
“Results in Australia and Canada are particularly encouraging because these markets are very similar in profile to the U.S. and may be predictive of the potential demand for the Dario in the world’s largest market for glucose monitors. Early success in Australia and Canada is proof that our lean, digital, direct-to-consumer approach will be a crucial asset for the U.S. launch of the Dario.”
“Technology, and particularly mobile technology, is transforming the multi-billion dollar medical device industry into one that is end-user driven. We have witnessed patients evaluating the benefits of mobile health solutions and they are willing to replace traditional meters with pure native mobile solutions. We believe our strategy of delivering user-friendly, patient-centric apps that also improve healthcare economics while providing caregivers and physicians with superior information, is a driver of our current and future success in this market. The Dario is our first product and we see clear opportunities to launch similar mobile healthcare apps for other indications,” Mr. Raphael concluded.
Q3 2015 Highlights:
- Sequential quarterly revenues grew 56% from $175,000 in Q2 2015 to $273,000 in Q3 2015.
- Shipments to distribution partners and customers of products and software services increased 17% from $250,000 in Q2 2015 to $292,000 in Q3 2015.
- Net loss narrowed by 41% and non-GAAP adjusted EBITDA narrowed by 39% in Q3 2015 as compared to Q3 2014.
- LabStyle was granted a patent in the U.S. that expands its intellectual property rights to include the management of all chronic diseases using smart phones.
- LabStyle signed new distribution agreements with market leaders, all of whom have followed the Dario digital marketing strategy and have opened e-commerce websites to promote on-line sales of the Dario Management Solution.
- LabStyle received reimbursement status for the Dario Smart Meter and test strips in Canada through the majority of medical plans.
- LabStyle presented clinical results at leading scientific conferences on diabetes and mHealth. Data show the Dario Diabetes Management solution not only meets new International Standards Organization (ISO) 2013 performance requirements for accuracy with 99% precision, it is also user friendly for patients, caregivers and physicians.
- The advanced telecare unit of Maccabi Healthcare, Israel’s leading HMO, has published positive patient performance results after one month of participation in the telemedicine partner program with the Dario Diabetes Management Solution.
- LabStyle was featured in numerous U.S.-based media outlets including eHealth Radio, Mass Device, Personal Tech MD, and Boston Magazine.
Near-term outlook:
- U.S. market launch expected in the next few months following anticipated FDA clearance for the Dario; the U.S. is the largest addressable market in the world.
- Market launches expected in additional strategic territories.
- Pursuing regulatory approval and reimbursement in additional markets.
- Signing additional strategic deals with healthcare providers and HMOs to monetize cloud-based data services.
Summary of Financial Results
LabStyle’s billings for the third quarter of 2015 amounted to approximately $292,000 compared to approximately $250,000 in the second quarter of 2015 and approximately $141,000 in the first quarter of 2015. This includes product shipments to distributors and direct customers, as well as services provided with respect to LabStyle’s patient management software platform launch as part of the partnership with Israel’s leading healthcare HMO, Maccabi Healthcare.
LabStyle’s revenues for the third quarter of 2015 amounted to approximately $273,000 compared to approximately $175,000 in the second quarter of 2015 and $67,000 in the first quarter of 2015.
Deferred revenues for the third quarter of 2015 amounted to approximately $54,000 compared to approximately $78,000 in the second quarter of 2015 and $56,000 in the first quarter of 2015.
GAAP net loss, as detailed in the table below decreased by approximately $4,504,000 or 71% to approximately $1,829,000 for the third quarter of 2015, compared to approximately $6,333,000 GAAP net loss in the third quarter of 2014.
Non-GAAP adjusted EBITDA for the three months ended on September 30, 2015, as detailed in the table below, decreased by approximately $816,000 or 39% to approximately $1,265,000 for the third quarter of 2015, compared to approximately $2,081,000 Non-GAAP adjusted EBIDTA in the third quarter of 2014.
As of September 30, 2015 cash and cash equivalents amounted to approximately $1,908,000.
Subsequent to September 30, 2015 LabStyle entered into a warrant replacement agreement with certain holders of warrants, which are accounted for as a liability in LabStyle’s financial statements, pursuant to which 4,257,067 outstanding warrants were replaced by warrants to acquire an aggregate of 4,682,772 shares of Common Stock.
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