SAN DIEGO, Aug. 14, 2017 (GLOBE NEWSWIRE) -- TearLab Corporation (NASDAQ:TEAR) (TSX:TLB) (“TearLab” or the “Company”) today reported its consolidated financial results for the second quarter ended June 30, 2017. All dollar amounts are expressed in U.S. currency and results are reported in accordance with United States generally accepted accounting principles except where noted otherwise.
Second Quarter 2017 and Recent Operational Highlights
- Achieved CE Marking of commercial version of TearLab Discovery™ System, its next-generation in-vitro diagnostics testing platform
- Commenced clinical studies and further progress toward completion of 510(k) application for U.S. regulatory clearance of TearLab Discovery™ System with submission expected second half 2017
- Increased revenue 4.7% sequentially to $7.0 million
- Expanded the U.S. active device base to approximately 4,600 TearLab Osmolarity Systems
- Further reduction in operating expenses; operating loss improved 16.7% compared to 2Q 2016
- Cash position of $10.2 million as of June 30, 2017
- Completed its review of strategic alternatives with a decision from the Company’s board of directors to execute its strategic business plan
For the three months ended June 30, 2017, TearLab’s net revenues were $7.0 million, compared with $6.9 million for the same period in 2016. A net total of 123 TearLab Osmolarity® Systems were added in the second quarter of 2017, of which 13 were under the Company’s Flex program and 41 were purchased outside of the United States.
The following table sets forth the estimated annualized revenue per U.S. device and account analysis for the second quarter ended June 30, 2017:
| Program | Active Devices | Annualized Revenue Per Device | Annualized Revenue Per Account | |||||||
| Active Accounts | ||||||||||
| Purchased | 782 | 691 | $ | 2,787 | $ | 3,153 | ||||
| Use | 139 | 139 | $ | 1,326 | $ | 1,326 | ||||
| Masters | 1,720 | 211 | $ | 3,285 | $ | 26,774 | ||||
| Flex | 1,946 | 760 | $ | 8,170 | $ | 20,919 | ||||
| Total | 4,587 | 1,801 | ||||||||
The Company’s reported net loss for the 2017 second quarter was approximately $3.9 million, or ($0.68) loss per share, compared to a reported net loss of approximately $4.3 million, or ($0.97) loss per share, in the second quarter of 2016. In addition, the Company’s cash burn in the second quarter was approximately $2.8 million, resulting in an ending cash balance of $10.2 million as of June 30, 2017.
“In the second quarter of 2017, we continued to execute under our refocused commercial model and are encouraged with the progress made, which included sequential growth of 5% compared to the first quarter. We have stabilized our core business, as demonstrated in the growth seen in revenue per-account and per-device in both our Flex and Masters contracts,” said Seph Jensen, TearLab’s Chief Executive Officer. “In addition to these sales advancements, we received CE Marking for the commercial version of our next-generation TearLab Discovery™ System, a comprehensive in-vitro diagnostics testing platform which can, for the first time, leverage the power of molecular diagnostics at the point of care for eye care professionals. We believe the TearLab Discovery™ System brings significant value to our shareholders, and the approval and successful launch of this platform are central to the execution of our strategic plan.”
Completion of Strategic Alternatives Review
The Company conducted an extensive and thorough strategic review of the alternatives available to it that included a broad marketing effort to solicit interest in a sale or other transaction to maximize value for all shareholders. During the process, TearLab received expressions of interest relating to a variety of potential transactions including interest to both acquire and invest in the Company. After careful consideration, the Company’s board of directors has determined that the interests of the Company’s stockholders are best served by focusing on execution of the Company’s strategic business plan. The Company may from time-to-time receive indications of interest and have discussions regarding possible strategic alternatives, and intends to consider proposals it receives in the future that it believes could result in the creation of stockholder value.
Business Outlook
