- Total Revenue of $8.3 Million; Recurring
Revenue of $4.2 Million Rises 31% Reflecting Increased Utilization
-
- Conference Call Today at 8:30 AM ET (3:30PM
IST) -
Mazor Robotics Ltd. (TASE: MZOR; NASDAQGM: MZOR), a pioneer and
a leader in the field of surgical guidance systems, generated
revenue of $8.3 million for the second quarter ended June 30, 2016.
During the second quarter Mazor received orders for 11 Renaissance
systems, six of which were installed in the U.S., including two
systems with brain modules. As a result of a trade-inupgrade
agreement, revenues related to one of the U.S. systems will be
recognized in a future period. Internationally, five systems were
ordered and three were delivered. As previously disclosed, two of
the international systems will be delivered in the second half of
2016, at which time the revenue will be recorded.
SIGNIFICANT RECENT OPERATING ACHIEVEMENTS
- On May 18th, Mazor entered into
commercial agreements with Medtronic plc for co-promotion,
co-development and potential global distribution of certain Mazor
products.
- On July 12th, Mazor unveiled the Mazor
X, a transformative Surgical Assurance Platform to enhance
predictability of spine surgeries for the benefit of patients and
those who treat them.
- On July 14th, at the International
Meeting on Advanced Spine Techniques (IMAST) annual meeting in
Washington DC, comprehensive data from two studies which
demonstrated significant clinical benefits of the Company’s
surgical guidance technology were presented.
- Strengthened balance sheet: following
the execution of the first tranche of the Medtronic equity
investment, on June 30th Mazor had $47.5 million in cash, cash
equivalents and investments, which provides resources for the
Company for continued development of advanced solutions to address
clinical needs for better patient outcomes.
- The Company received a purchase order
from Medtronic for fifteen Mazor X systems to be delivered in the
second half of 2016.
“This was a strong quarter for Mazor, culminated by several
achievements that significantly enhance our growth prospects and
position us for continued success,” commented Ori Hadomi, Chief
Executive Officer. “We reported the second highest number of
Renaissance purchase orders received in a single quarter,
demonstrating the market’s growing interest in our surgical
guidance systems. As reported earlier this quarter, we entered into
two strategic agreements with Medtronic which we expect to
accelerate our market penetration providing more clinicians and
their patients with access to the Mazor X, the new transformative
surgical guidance platform for spine surgeries that we recently
unveiled. We have pioneered the field of spine robotics and Mazor X
will create a new standard of care by which to measure technologies
in this field, thus maintaining our leadership position for the
foreseeable future.”
SECOND QUARTER 2016 FINANCIAL RESULTS ON IFRS BASIS
("GAAP")
Revenue for the three months ended June 30, 2016 increased 6% to
$8.3 million compared to $7.8 million in the year-ago second
quarter. U.S. revenues were $6.7 million compared to $6.5 million
in the year-ago second quarter. The Company received orders for six
Renaissance systems in the U.S., including two systems with the
brain module, compared to a similar number of systems in the
year-ago second quarter. As previously disclosed, revenue related
to one of the systems in the second quarter of 2016 will be
recognized in a future period. International revenues were $1.6
million compared to $1.3 million in the second quarter of 2015. The
Company received orders for five Renaissance systems from its
international distributors in Italy, Australia and China. Three
systems were delivered in the second quarter of 2016. Two of these
systems will be delivered to the Chinese distribution partner
during the second half of 2016, at which time the revenue will be
recorded. In the second quarter of 2015, the Company received one
purchase order for Renaissance system in the international
market.
Recurring revenue from system kit sales, service and others
increased to $4.2 million in the second quarter of 2016,
representing a 31% increase compared to $3.2 million in the second
quarter of 2015.
The Company’s gross margin for the three months ended June 30,
2016 was 76.9% compared to 79.6% in the second quarter of 2015.
Total operating expenses were $10.3 million compared to $8.4
million in the second quarter of 2015. Operating loss was $4.0
million compared to an operating loss of $2.2 million in the
year-ago second quarter. Net loss for the second quarter of 2016
was $4.1 million, or $0.09 per share, compared to a net loss of
$2.1 million, or $0.05 per share, in the year-ago second
quarter.
Cash used in operating activities was $0.6 million compared to
$0.5 million used in last year’s second quarter. As of June 30,
2016, cash, cash equivalents and investments totaled $47.5 million,
which includes the initial equity investment from Medtronic of
$11.9 million. The Company expects to receive the second equity
investment from Medtronic before the end of August 2016.
SECOND QUARTER 2016 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
expense in the net amount of $0.2 million with respect to
share-based payments and capitalization of development costs
recorded in the second quarter of 2016. On a non-GAAP basis, the
net loss in the second quarter of 2016 was $3.9 million, or $0.09
per share, compared to $1.5 million, or $0.04 per share, for the
second quarter of 2015.
SIX MONTHS ENDED JUNE 30, 2016 FINANCIAL RESULTS ON IFRS
BASIS (“GAAP”)
For the six months ended June 30, 2016, revenue increased 20%
and totaled $14.7 million compared to $12.3 million for the six
months ended June 30, 2015, due to higher system sales and an
increase in recurring revenues. Recurring revenue totaled $8.0
million, an increase of 36% compared to $5.9 million in the six
months ended June 30, 2015. The growth in recurring revenue is
attributed to the increase in the install base and increased
utilization of the Company’s Renaissance system, both in the U.S.
and globally. Gross margin for the six months ended June 30, 2016
was 75.7% compared with 78.1% in the six months ended June 30,
2015. Net loss for the six months ended June 30, 2016 was $9.2
million compared to $7.3 million in the first six months of
2015.
SIX MONTHS ENDED JUNE 30, 2016 FINANCIAL RESULTS ON NON-GAAP
BASIS
On a non-GAAP basis, the net loss for the first six months of
2016 was $8.1 million, or $0.19 per share, compared to a net loss
of $6.0 million, or $0.14 per share, in the first six months of
2015.
CONFERENCE CALL INFORMATION
The Company will host a conference call to discuss these results
on Tuesday, August 2, 2016, at 8:30 AM ET (3:30 PM IST). Investors
within the United States interested in participating are invited to
call 877-269-7756. Participants in Israel can use the toll free
dial-in number 809 406 247. All other international participants
can use the dial-in number 201-689-7817.
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 877-660-6853 and reference the Replay Access
Code: 13642069. All international callers can dial 201-612-7415,
using the same Replay Access Code. To access the webcast, please
visit www.mazorrobotics.com and select ‘Investor Relations.’
Use of Non-GAAP Measures
In addition to disclosing financial results calculated in
accordance with generally accepted accounting principles in
conformity with International Financial Reporting Standards (GAAP),
this press release contains non-GAAP financial measures for gross
profit, operating expenses, operating loss, net loss and basic and
diluted earnings per share that exclude the effects of non-cash
expense of share-based payments and capitalization of development
costs. Management believes that these non-GAAP financial measures
provide meaningful supplemental information regarding the Company’s
performance that enhances management's and investors' ability to
evaluate the Company's net income and earnings per share and to
compare them to historical net income and earnings per share.
The presentation of this non-GAAP financial information is not
intended to be considered in isolation or as a substitute for the
financial information prepared and presented in accordance with
GAAP. Management uses both GAAP and non-GAAP measures when
operating and evaluating the Company’s business internally and
therefore decided to make these non-GAAP adjustments available to
investors.
About Mazor
Mazor Robotics (TASE: MZOR; NASDAQGM: MZOR) believes in healing
through innovation by developing and introducing revolutionary
robotic-based technology and products aimed at redefining the gold
standard of quality care. Mazor Robotics Renaissance® Guidance
System enables surgeons to conduct spine and brain procedures in a
more accurate and secure manner. For more information, please visit
www.MazorRobotics.com.
Forward-Looking Statements
This press release contains forward-looking
statements within the meaning of the Private Securities Litigation
Reform Act of 1995 and other securities laws. Any statements in
this release about future expectations, plans or prospects for the
Company, including without limitation, statements regarding growth
prospects, the impacts of the Mazor X system, the planned delivery
of Mazor X systems to Medtronic, the timing of Medtronic’s second
equity investment, and other statements containing the words
“believes,” “anticipates,” “plans,” “expects,” “will” and similar
expressions are forward-looking statements. These statements are
only predictions based on Mazor's current expectations and
projections about future events. There are important factors that
could cause Mazor's actual results, level of activity, performance
or achievements to differ materially from the results, level of
activity, performance or achievements expressed or implied by the
forward-looking statements. Those factors include, but are not
limited to, the impact of general economic conditions, competitive
products, product demand and market acceptance risks, reliance on
key strategic alliances, fluctuations in operating results, and
other factors indicated in Mazor's filings with the Securities and
Exchange Commission (SEC) including those discussed under the
heading "Risk Factors" in Mazor’s annual report on Form 20-F filed
with the SEC on May 2, 2016 and in subsequent filings with the SEC.
For more details, refer to Mazor's SEC filings. Mazor undertakes no
obligation to update forward-looking statements to reflect
subsequent occurring events or circumstances, or to changes in our
expectations, except as may be required by law.
Mazor Robotics Ltd.CONSOLIDATED
STATEMENT OF PROFIT OR LOSS(in thousands, except per share
data)(Unaudited)
Six month period Three month period ended
June 30, ended June 30, 2016
2015 2016 2015
Revenue $
14,703 $ 12,313 $
8,284 $ 7,803
Cost of revenue $
3,566 $ 2,692 $
1,912 $ 1,595
Gross profit
$ 11,137 $ 9,621
$ 6,372
$ 6,208
Operating expenses: Research
and development, net $
3,242 $ 3,160 $
1,111 $ 1,686
Selling and marketing $
14,656 $ 11,619 $
7,783
$ 5,671 General and administrative $
2,412 $ 2,130
$
1,429 $ 1,027
Total operating
expenses $ 20,310 $ 16,909
$ 10,323
$ 8,384
Loss from operations $ (9,173
) $ (7,288 )
$ (3,951 ) $ (2,176 )
Financing income, net $
203 $ 120 $
28 $ 181
Loss before taxes on
income $ (8,970 ) $ (7,168 )
$
(3,923 ) $ (1,995 ) Taxes on income $
209 $ 90 $
144 $ 61
Net loss $ (9,179
) $ (7,258 )
$ (4,067 ) $ (2,056 )
Net loss per share – Basic and diluted $
(0.21 ) $ (0.17 )
$ (0.09 ) $
(0.05 ) Weighted average common shares outstanding – Basic
and diluted
42,880 42,230
43,347 42,286
Mazor Robotics Ltd.CONSOLIDATED
STATEMENTS OF FINANCIAL POSITION AS OF(U.S. Dollars in
thousands)
June 30, December 31, 2016 2015
(Unaudited) (Audited) Current assets Cash and
cash equivalents
$ 17,277 $ 13,519 Short-term
investment
$ 25,105 $ 21,687 Trade receivables
$ 2,658 $ 5,002 Other current assets
$
1,407 $ 1,420 Inventory
$ 3,412 $ 2,777
Total current assets $ 49,859 $ 44,405
Non-current assets Prepaid lease fee
$ 77 $ 73
Deferred tax assets
$ 37 $ 37 Long-term investments
$ 5,107 $ 5,023 Property and equipment, net
$
2,371 $ 1,432 Intangible assets
$ 1,011 $ -
Total non-current assets $ 8,603 $ 6,565
Total assets $ 58,462 $ 50,970
Current liabilities Trade payables
$ 3,487 $
2,219 Other current liabilities
$ 6,949 $ 6,052
Total current liabilities $ 10,436 $ 8,271
Non-current liabilities Employee benefits
$
367 $ 299
Total non-current liabilities $
367 $ 299
Total liabilities $
10,803 $ 8,570
Equity Share capital
$
116 $ 110 Share premium
$ 148,606 $ 136,107
Amounts allocated to share options
$
-
$ 77 Capital reserve for share-based payment transactions
$
9,189 $ 7,179 Foreign currency translation reserve
$
2,119 $ 2,119 Accumulated loss
$ (112,371
) $ (103,192 )
Total equity $ 47,659 $
42,400
Total liabilities and equity $
58,462 $ 50,970
Mazor Robotics Ltd.CONSOLIDATED
CASH FLOW STATEMENTS(U.S. Dollars in
thousands)(Unaudited)
Six months ended Three months ended June
30, June 30, 2016
2015 2016 2015
Cash flows from operating activities: Loss for the
period
$ (9,179 ) $ (7,258 )
$
(4,067 ) $ (2,056 )
Adjustments: Depreciation
$ 296 $ 250
$ 150 $ 126 Finance income,
net
$ (173 ) $ (138 )
$ (31
) $ (106 ) Share-based payment
$ 2,134 $ 1,278
$ 1,218 $ 520 Taxes on income
$ 209 $
90
$ 144 $ 61
$ 2,466 $ 1,480
$
1,481 $ 601 Change in inventory
$ (635
) $ 172
$ (610 ) $ 269 Change in trade
and other accounts receivable
$ 2,377 $ (586 )
$ 639 $ (1,201 ) Change in prepaid lease fees
$ (4 ) $ (3 )
$ 6 $ (5 ) Change
in trade and other accounts payable
$ 1,333 $ 1,573
$ 1,869 $ 1,883 Change in employee benefits
$
68 $ 18
$ (8 ) $ 23
$
3,139 $ 1,174
$ 1,896 $ 969 Interest
received
$ 137 $ 35
$ 73 $ 23 Income
tax paid
$ (39 ) $ (108 )
$ (2
) $ -
$ 98 $ (73 )
$ 71 $ 23
Net cash used in operating activities $
(3,476 ) $ (4,677 )
$ (619 ) $
(463 )
Cash flows from investing activities: Proceeds
from (investment in) short-term investments and deposits, net
$ (2,377 ) $ 5,013
$ (9,023
) $ 3,015 Investment in long-term investments
$
(1,125 ) $ -
$ (629 ) $ -
Purchase of property and equipment
$ (1,203 )
$ (188 )
$ (785 ) $ (145 ) Capitalization of
development costs
$ (597 ) $ -
$
(597 ) $ -
Net cash provided by (used in)
investing activities $ (5,302 ) $ 4,825
$ (11,034 ) $ 2,870
Cash flows from
financing activities: Proceeds from issuance of ADRs, net
$ 11,895 $ -
$ 11,895 $ - Proceeds from
exercise of share options by employees
$ 123 $ 307
$ 48 $ 124 Proceeds from exercise of warrants by
investors
$ 481 $ -
$ - $ -
Net cash
provided by financing activities $ 12,499
$ 307
$ 11,943 $ 124
Net
increase in cash and cash equivalents $ 3,721 $
455
$ 290 $ 2,531 Cash and cash equivalents at the
beginning of the period
$ 13,519 $ 22,255
$
17,008 $ 20,084 Effect of exchange rate differences on
balances of cash and cash equivalents
$ 37 $ (32 )
$ (21 ) $ 63 Cash and cash equivalents at the
end of the period
$ 17,277 $ 22,678
$
17,277 $ 22,678
Supplementary cash flows
information: Acquisition of fixed assets on credit
$
(32 ) $ -
$ (32 ) $ - Issuance
costs in credit
(199 ) - $
(199 ) -
Capitalization of development expenses on credit
$
(414 ) $ -
$ (414 ) $ -
Mazor Robotics
Ltd.RECONCILIATIONS OF GAAP TO NON-GAAP FINANCIAL
MEASURES(U.S. Dollars in thousands, except per share
data)(Unaudited)
Six month period Three month period ended
June 30, ended June 30, 2016
2015 2016 2015
GAAP gross profit $ 11,137 $ 9,621 $ 6,372 $ 6,208
Share-based payments $ 83 $ 52 $ 47 $ 16
Non-GAAP gross profit $ 11,220 $
9,673 $ 6,419 $ 6,224 GAAP gross
profit as percentage of revenues 75.7 % 78.1 %
76.9 % 79.6 %
Non-GAAP gross profit as percentage of
revenues 76.3 % 78.6 % 77.5
% 79.8 % GAAP operating expenses
$ 20,310 $ 16,909 $ 10,323 $ 8,384 Share-based payments: Research
and development $ 347 $ 196 $ 197 $ 72 Selling and marketing $
1,215 $ 552 $ 695 $ 163 General and administrative $ 489 $ 478 $
279 $ 269 Development costs capitalization $ (1,011 ) $ - $
(1,011 ) $ -
Non-GAAP operating expenses $
19,270 $ 15,683 $ 10,163
$ 7,880 GAAP operating loss $ (9,173 )
$ (7,288 ) $ (3,951 ) $ (2,176 )
Non-GAAP operating loss
$ (8,050 ) $ (6,010 )
$ (3,744 ) $ (1,656 )
GAAP net loss $ (9,179 ) $ (7,258 ) $ (4,067 ) $
(2,056 ) Share-based payments $ 2,134 $ 1,278 $ 1,218 $ 520
Development costs capitalization $ (1,011 ) $ - $ (1,011 ) $
-
Non-GAAP net loss $ (8,056 )
$ (5,980 ) $ (3,860 )
$ (1,536 ) GAAP basic and diluted
loss per share $ (0.21 ) $ (0.17 ) $ (0.09 ) $ (0.05 )
Non-GAAP basic and diluted loss per share $
(0.19 ) $ (0.14 ) $
(0.09 ) $ (0.04 )
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version on businesswire.com: http://www.businesswire.com/news/home/20160802005387/en/
U.S. Contacts: EVC GroupInvestorsMichael Polyviou,
212-850-6020mpolyviou@evcgroup.comDoug Sherk,
646-445-4800dsherk@evcgroup.comorMediaDavid Schemelia,
646-201-5431dave@evcgroup.com
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