TORONTO, Ontario, April 28, 2015 (GLOBE NEWSWIRE) -- Novadaq Technologies Inc. (“NOVADAQ” or the “Company”) (Nasdaq:NVDQ) (TSX:NDQ), the leading developer and provider of clinically relevant fluorescence imaging solutions for use in surgical and diagnostic procedures, today announced financial results for its first quarter ended March 31, 2015. Unless otherwise indicated, all dollar amounts in this press release are expressed in United States (“U.S.”) dollars.
For the three months ended March 31, 2015, NOVADAQ reported revenues of $11.7 million, an increase of 14% from $10.3 million in the first quarter of 2014. Product sales increased by $1.7 million, or 18%, primarily due to a 45% increase in recurring revenue, partially offset by a 1% decrease in capital sales. Revenue recognized on SPY Elite kit sales increased by 34% as a result of the Company recognizing 100% of SPY Elite sales, offset by an approximate 16% decrease in the number of SPY Elite kits sold.
“While we more than doubled the size of our sales team over the course of the past six months, we didn’t have adequate sales coverage early enough in Q1 to maintain overall SPY Elite kit sales volumes,” said Arun Menawat, NOVADAQ’s President and Chief Executive Officer. “That said, starting from a relatively weak January, SPY Elite kit sales volumes trended up throughout the rest of the first quarter and that positive momentum has thus far continued into Q2.”
First quarter gross profits of $7.5 million (64% margin) compared to gross profits of $6.7 million (65%) in the same period last year.
Net loss for the 2015 first quarter was $11.3 million, or $0.20 loss per share, compared with a net loss of $16.1 million, or $0.29 loss per share, in Q1-2014. The decrease in net loss was a result of non-cash warrant revaluation income of $23,000 in Q1-2015, compared to non-cash revaluation expense of $11.9 million in Q1-2014 and an increase in gross profit of $0.8 million. Offsetting these amounts was an increase in operating expenses of $7.9 million.
First quarter 2015 operating burn (cash consumed by operating activities before changes in working capital) was $8.3 million compared to $2.2 million in the first quarter of 2014. This difference in operating burn was mainly driven by increased selling and distribution expenses associated with the continued build-out of NOVADAQ’s direct sales and marketing infrastructure. During Q1-2015, working capital consumed was $0.6 million, and $0.9 million was used to build SPY technology systems for evaluation and placement.
Cash and cash equivalents were $133.0 million at March 31, 2015, reflecting a decrease of $8.4 million compared to the cash position as at December 31, 2014.
During the 2015 first quarter, 129 SPY technology systems, including FIREFLY, were shipped globally. Exiting the quarter, the worldwide installed base of SPY technology systems was approximately 1,854.
The Company estimates that the number of procedures performed using SPY technology systems during the first quarter was approximately 8,800, representing an increase of 33% over year-over-year and a decrease of 11% sequentially over the previous quarter.
“To support our transition from a company that has been known best for its partnership based business model to one that is driven primarily by its own direct sales efforts, we invested heavily in our sales force in Q1, with selling and distribution expenses increasing from $7.5 million in Q4-2014 to $12.5 million in Q1-2015,” continued Dr. Menawat. “The returns from this sales force investment will begin to be realized starting in the second half of the year.”
Current 2015 Outlook
As previously disclosed, based on the Company’s business planning and budgeting activities, NOVADAQ anticipates its full year revenue for the fiscal year ending December 31, 2015 to be approximately $65 million, representing total year-over-year revenue growth of approximately 40%.
Conference Call Details
NOVADAQ is pleased to invite all interested parties to participate in a conference call today, April 28, 2015 at 4:30 p.m. Eastern Time, during which the results will be discussed.
Those wishing to access the live conference call by telephone should dial 1-877-407-8031 (Canada and the United States) or 1-201-689-8031 (International) several minutes prior to the beginning of the call.
A replay of the conference call can be accessed by dialing 1-877-660-6853 (Canada and the United States) or 1-201-612-7415 (International) and entering the conference identification number 13607157 when prompted.
The call will also be archived for 90 days on the Company’s website at novadaq.com under the “Events” tab in the Investor’s section. A replay of the call will be available for download to a portable audio player or computer, as an MP3 or podcast file, at the same location on NOVADAQ’s website.
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