CAESAREA, Israel--(BUSINESS WIRE)--Mazor Robotics Ltd. (TASE: MZOR; NASDAQGM: MZOR), a pioneer and a leader in the field of surgical guidance systems, reported record first quarter revenue of $11.7 million. As previously announced, the Company received purchase orders for six systems in the 2017 first quarter and ended the quarter with a backlog of 14 systems.
“Our first quarter of 2017 was highlighted by record first quarter revenue and expanded utilization of our Renaissance system installed base,” commented Ori Hadomi, Chief Executive Officer. “Our revenue growth was driven by two factors. First, we supplied 12 Mazor X systems as we continued to process our 2016 year-end backlog. Second, we had record utilization by our installed base during the quarter. The enthusiasm for the Mazor X continues, and to date we have received four purchase orders for the Mazor X in the second quarter of 2017.”
FIRST QUARTER 2017 FINANCIAL RESULTS ON IFRS BASIS ("GAAP")
Revenue for the three months ended March 31, 2017 increased 83% to $11.7 million compared to $6.4 million in the year-ago first quarter. U.S. revenue increased 100% to $11.2 million compared to $5.6 million in the year-ago first quarter, as the Company recognized revenue from 12 Mazor X systems, compared to four Renaissance systems in the 2016 first quarter. The Company ended the quarter with a backlog of 14 Mazor X systems; revenue from these systems is expected to be recorded in 2017. International revenue was $0.5 million compared to $0.8 million in the year-ago first quarter. Recurring revenue from kit sales, services and others increased 37% to $5.2 million in the first quarter of 2017, compared to $3.8 million in the year-ago first quarter. The growth is attributed mainly to the increase of the installed base.
The Company’s gross margin for the three months ended March 31, 2017 was 64.6% compared to 74.2% in the year-ago first quarter. This expected decrease is attributed mainly to discounted pricing to the Company’s Mazor X distribution partner, the higher manufacturing costs of the Mazor X compared to the Renaissance system, and the inclusion of two Renaissance trade-ins to Mazor X. Total operating expenses were $13.3 million compared to $10.0 million in the year-ago first quarter primarily reflecting the Company’s increased investments in sales and marketing activities. Operating loss was $5.7 million compared to an operating loss of $5.2 million in the year-ago first quarter. Net loss for the first quarter of 2017 was $5.2 million, or $0.11 per share, compared to a net loss of $5.1 million, or $0.12 per share, for the year-ago first quarter.
Cash generated by operating activities during the first quarter was $0.7 million compared to $2.9 million cash used in operating activities in the year-ago first quarter. As of March 31, 2017, cash, cash equivalents and investments totaled $63.9 million.
FIRST QUARTER 2017 FINANCIAL RESULTS ON NON-GAAP BASIS
The tables below include reconciliation of the Company’s GAAP results to non-GAAP results. The reconciliation relates to non-cash expenses in the amount of $1.3 million with respect to amortization of intangible assets and to share-based expenses recorded in the first quarter of 2017. On a non-GAAP basis, the net loss in the first quarter of 2017 was $3.9 million, or $0.08 per share, compared to $4.2 million, or $0.10 per share, for the year-ago first quarter.
CONFERENCE CALL INFORMATION
The Company will host a conference call to discuss its first quarter financial results as well as recent corporate developments on May 10, 2017 at 8:30 AM EDT (3:30 PM IDT). Investors within the United States interested in participating are invited to call 888-298-3457. Participants in Israel can use the toll-free dial-in number 1-80-924-5906. All other international participants can use the dial-in number 719-457-2689.
A replay of the event will be available for two weeks following the conclusion of the call. To access the replay, callers in the United States can call 1-866-375-1919 and reference the Replay Access Code: 8737181. All international callers can dial +1-719-457-0820, using the same Replay Access Code. To access the webcast, please visit www.mazorrobotics.com and select ‘Investor Relations.’
