NeuroMetrix Reports Q2 2018 Financial Results
July 19 2018 - 7:00AM
NeuroMetrix, Inc. (Nasdaq:NURO), today reported financial and
business highlights for the quarter ended June 30, 2018.
The Company develops and markets novel therapies, based on
neurostimulation and digital medicine, for chronic health
conditions. The Company has two primary products. Quell® is
an over-the-counter wearable neurostimulation device for treating
chronic pain. DPNCheck® is a point-of-care test that provides
accurate and cost-effective screening, diagnosis and monitoring of
diabetic peripheral neuropathy (DPN).
GSK Update
In Q1 2018 the Company and GlaxoSmithKline (NYSE:GSK) entered a
$26.5 million strategic collaboration to develop and market Quell
technology with defined milestones. The parties also committed to
co-fund development of Quell technology starting in 2019.
The first collaboration milestone was achieved during Q2 2018
and triggered a $3.8 million payment. The Company expects total
funding from the collaboration during 2018 to be $12.7 million.
Approximately $8.8 million has been received year to date.
“We are working closely with GSK on Quell product development,”
said Shai N. Gozani, M.D., Ph.D., President and Chief Executive
Officer of NeuroMetrix. “These efforts are essential to both the
GSK launch in markets outside the U.S and to our U.S. release of
the next generation Quell later this year. We are confident that
the new product features will resonate with people suffering from
chronic pain and will deliver expanded margins for the
business.”
Q2 2018 Highlights:
- Total revenue of $3.8 million decreased 13% from $4.3 million
in Q2 2017
- Quell revenue of $2.1 million was down 32% from $3.0 million Q2
2017. The drop was anticipated and correlates with a 37% deferral
in ad spending to support the next generation Quell launch later in
the year.
- DPNCheck revenue of $1.3 million was up 58% from Q2 2017. This
was a new quarterly high and reflected strength in both domestic
and international markets.
- Gross margin of 48.0% was up 9.2 percentage points from 38.8%
in Q2 2017
- Operating expenses of $5.0 million were unchanged from Q2
2017
- Net collaboration income of $3.7 million was recorded
- Net income of $0.6 million compared with a net loss of $3.2
million in Q2 2017
- Cash at June 30, 2018 totaled $7.1 million
Company to Host Live Conference Call and
Webcast
NeuroMetrix management will host a conference call today, July
19, 2018 at 8:00 a.m., Eastern Time. To access the call in the
United States, dial 844-787-0799 and use the confirmation code
7894528. Internationally, the conference call may be accessed by
dialing (661) 378-9630 and using the same confirmation code. The
call will also be webcast and will be accessible from the Company's
website at http://www.NeuroMetrix.com under the "Investor
Relations" tab. A replay of the conference call will be available
starting two hours after the call by dialing 855-859-2056,
domestically and 800-585-8367, internationally. The confirmation
code to access the replay is 7894528. The replay will be available
for one week after the conference call.
About NeuroMetrix
NeuroMetrix is a commercial stage, innovation driven
healthcare company combining neurostimulation and digital medicine
to address chronic health conditions including chronic pain, sleep
disorders, and diabetes. The Company has two primary products.
Quell is an over-the-counter wearable therapeutic device for
chronic pain. DPNCheck is a rapid point-of-care test for
diabetic neuropathy which is the most common long-term complication
of Type 2 diabetes. For more information, please
visit www.NeuroMetrix.com.
Safe Harbor Statement
The statements contained in this press release include
forward-looking statements within the meaning of Section 27A of the
Securities Act of 1933, as amended, and Section 21E of the
Securities Exchange Act of 1934, as amended, including, without
limitation, statements regarding the company’s or management’s
expectations regarding the business, as well as events that could
have a meaningful impact on the company’s revenues and cash
resources. While the company believes the forward-looking
statements contained in this press release are accurate, there are
a number of factors that could cause actual events or results to
differ materially from those indicated by such forward-looking
statements, including, without limitation, estimates of future
performance, and the ability to successfully develop, receive
regulatory clearance, commercialize and achieve market acceptance
for any products. There can be no assurance that future
developments will be those that the company has anticipated. Such
forward-looking statements involve known and unknown risks,
uncertainties and other factors including those risks,
uncertainties and factors referred to in the company’s most recent
Annual Report on Form 10-K, Quarterly Reports on Form 10-Q, as well
as other documents that may be filed from time to time with the
Securities and Exchange Commission or otherwise made public. The
company is providing the information in this press release only as
of the date hereof, and expressly disclaims any intent or
obligation to update the information included in this press release
or revise any forward-looking statements.
Source: NeuroMetrix, Inc.
Thomas T. HigginsSVP and Chief Financial
Officer781-314-2761neurometrix.ir@neurometrix.com
NeuroMetrix,
Inc.Statements of
Operations(Unaudited)
|
Quarters Ended June 30, |
|
Six Months Ended June 30, |
|
2018 |
|
2017 |
|
2018 |
|
2017 |
|
|
|
|
|
|
|
|
Revenues |
$ |
3,751,568 |
|
|
$ |
4,310,059 |
|
|
$ |
8,694,558 |
|
|
$ |
8,616,181 |
|
|
|
|
|
|
|
|
|
Cost of revenues |
1,950,304 |
|
|
2,639,402 |
|
|
4,905,564 |
|
|
5,337,004 |
|
|
|
|
|
|
|
|
|
Gross
profit |
1,801,264 |
|
|
1,670,657 |
|
|
3,788,994 |
|
|
3,279,177 |
|
|
|
|
|
|
|
|
|
Operating
expenses: |
|
|
|
|
|
|
|
Research
and development |
1,616,863 |
|
|
877,584 |
|
|
2,896,427 |
|
|
1,780,868 |
|
Sales and
marketing |
2,200,852 |
|
|
2,919,281 |
|
|
4,705,593 |
|
|
5,516,993 |
|
General
and administrative |
1,170,634 |
|
|
1,245,347 |
|
|
2,974,777 |
|
|
2,667,129 |
|
|
|
|
|
|
|
|
|
Total
operating expenses |
4,988,349 |
|
|
5,042,212 |
|
|
10,576,797 |
|
|
9,964,990 |
|
|
|
|
|
|
|
|
|
Loss from
operations |
(3,187,085 |
) |
|
(3,371,555 |
) |
|
(6,787,803 |
) |
|
(6,685,813 |
) |
|
|
|
|
|
|
|
|
Other income: |
|
|
|
|
|
|
|
Collaboration income |
3,749,999 |
|
|
— |
|
|
8,505,704 |
|
|
— |
|
Other
income |
11,014 |
|
|
133,759 |
|
|
22,279 |
|
|
215,617 |
|
|
|
|
|
|
|
|
|
Total
other income |
3,761,013 |
|
|
133,759 |
|
|
8,527,983 |
|
|
215,617 |
|
|
|
|
|
|
|
|
|
Net income (loss) |
$ |
573,928 |
|
|
$ |
(3,237,796 |
) |
|
$ |
1,740,180 |
|
|
$ |
(6,470,196 |
) |
|
NeuroMetrix, Inc.Condensed Balance
Sheets(Unaudited)
|
|
June 30, 2018 |
|
|
December 31, 2017 |
|
|
|
|
|
|
|
|
Cash and cash
equivalents |
|
$ |
7,108,915 |
|
|
$ |
4,043,681 |
|
Other current
assets |
|
|
4,230,509 |
|
|
|
5,059,693 |
|
Noncurrent assets |
|
|
468,796 |
|
|
|
495,850 |
|
Total
assets |
|
$ |
11,808,220 |
|
|
$ |
9,599,224 |
|
|
|
|
|
|
|
|
|
|
Current
liabilities |
|
$ |
4,086,613 |
|
|
$ |
4,581,835 |
|
Stockholders’
equity |
|
|
7,721,607 |
|
|
|
5,017,389 |
|
Total
liabilities and stockholders’ equity |
|
$ |
11,808,220 |
|
|
$ |
9,599,224 |
|
|
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