TORONTO, July 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 second quarter ended June 30, 2015. Unless otherwise indicated, all dollar amounts in this press release are expressed in United States (“U.S.”) dollars.
For the three months ended June 30, 2015, NOVADAQ reported revenues of $15.1 million, an increase of 35% from $11.2 million in the second quarter of 2014. Product sales increased by $3.9 million, or 38%, primarily due to a 64% increase in recurring revenue and a 24% increase in capital sales.
“At the start of the year, we initiated our transformation from a company that was characterized by its partnership-based business model to one driven primarily by its own direct sales,” commented Arun Menawat, NOVADAQ’s President and Chief Executive Officer. “Moving forward, the following metrics will be shared with the investment community so they can better measure our progress over time.”
| Q1-2015 | Q2-2015 | Change | |
| REVENUES (million’s) | |||
| Recurring | $4.9 | $5.7 | +15% |
| Capital | $3.6 | $6.5 | +82% |
| Total Direct | $8.5 | $12.2 | +43% |
| Partnered/International | $3.2 | $2.9 | -9% |
| Total | $11.7 | $15.1 | +29% |
| INSTALLED BASE | |||
| Direct Systems | 575 | 611 | +6% |
| Recurring Revenue/Direct System | $8,566 | $9,251 | +8% |
Second quarter gross profits of $10.7 million (71% margin) compared to gross profits of $6.9 million (62%) in the same period last year.
Net loss for the 2015 second quarter was $6.0 million, or $0.11 basic loss per share, compared with net income of $6.3 million, or $0.11 basic income per share, in Q2-2014. The change was a result of an increase in operating expenses of $11.6 million and a decrease in warrant revaluation income of $4.5 million. Offsetting these amounts was an increase in gross profit of $3.8 million.
Second quarter 2015 operating burn (cash consumed by operating activities before changes in working capital) was $8.7 million compared to $1.5 million in the second 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 Q2-2015, working capital improved by $1.0 million, driven by increased accounts payable and accrued liabilities, partially offset by increased inventories, accounts receivable and prepaid expenses and other assets.
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