Invuity Reports 2015 Third Quarter, Nine-Month Financial Results
November 10 2015 - 4:00PM
Invuity, Inc. (NASDAQ:IVTY), an advanced medical technology
company, today reported financial results for the third quarter and
nine-months ended September 30, 2015.
Q3 2015 Highlights
- Revenue grew 50% to $5.6 million compared to revenue of $3.7
million in the 2014 third quarter.
- Revenue for the first nine months of 2015 increased 70% to
$14.8 million from $8.7 million in the prior year period.
- Approximately 465 hospitals purchased Invuity devices in the
third quarter of 2015, up from 280 hospitals in the third quarter
of 2014.
- Since inception, approximately 125,000 procedures have been
performed using Invuity devices, up from 66,000 procedures
performed through the third quarter of 2014.
"We were very pleased with our execution during the third
quarter including our Q3 financial results. We are expanding our
commercial platform, increasing the body of clinical and economic
data that supports our product offering, and rapidly introducing
new products to our product portfolio," said President and CEO
Philip Sawyer. "Furthermore, the recent introduction of our Hidden
ScarTM program for Breast Cancer Surgery represents the first of
several innovative offerings targeting the overall customer chain
in today's medical marketplace. We are delighted by the early
success. All of these initiatives will provide us with a strong
foundation for future growth."
Financial Results
Revenue was $5.6 million in the third quarter of 2015, compared
to $3.7 million in the third quarter of 2014. For the first nine
months of 2015, revenue was $14.8 million, an increase of 70% from
revenue of $8.7 million in the first nine months of 2014.
Gross margin for the 2015 third quarter was 63.6%, and was 62.1%
for the first nine months.
Total operating expenses for the 2015 third quarter and first
nine months were $12.2 million and $34.8 million, respectively,
compared to $7.4 million and $19.9 million in the prior year
periods.
The net loss for the third quarter of 2015 was $9.1 million, or
$0.69 loss per share, compared to a net loss of $5.3 million, or
$8.11 loss per share, for the third quarter of 2014. The net loss
for the first nine months of 2015 was $27.5 million, or $4.84 loss
per share, compared to $15.5 million, or $23.86 loss per share, for
the first nine months of 2014.
The Company's balance sheet as of September 30, 2015, showed
total cash and cash equivalents of $54 million.
Business Highlights
- The company launched the EibergTM, a new illuminated retractor
system targeted at hip replacement surgery and hip and pelvic
trauma markets, adding to the company's portfolio of orthopedic
products while supporting the growing trend in orthopedic surgery
toward less invasive procedures.
- In response to hospital initiatives focused on ensuring safety
during minimally invasive surgeries, the company launched the
EikonTM LT, engineered from a proprietary non-conductive polymer,
expanding its original platform with design enhancements that
eliminate the risks of potential patient burns and operating room
fires due to arcing from electrosurgical devices and fiber optic
devices. In addition, the LT Series was launched with a tissue grip
option designed specifically for plastic surgeons.
- A retrospective chart analysis of breast cancer surgeries
demonstrated clear clinical and economic benefits using Invuity
products. The company's products improved surgical efficiency and
safety and reduced complications for patients, as well as
contributing to better economic outcomes for the hospital.
- The company launched its Hidden Scar for Breast Cancer Surgery
program designed to certify surgeons and establish Centers of
Excellence at major cancer centers and hospitals across the country
to meet the growing demand for less invasive alternatives to breast
cancer surgery that deliver optimal clinical and aesthetic outcomes
for patients.
Conference Call
Invuity's management will discuss the Company's financial
results for the third quarter and nine months ended September 30,
2015, and provide a general business update during a conference
call beginning at 5:00 p.m. Eastern Time today, November 10, 2015.
To join the live call, participants may dial 1-855-539-0900 (U.S.)
or 1-412-455-6044 (International). To listen to the live call via
Invuity's website, go to www.invuity.com, in the Events &
Presentations section. A webcast replay of the call will be
available following the conclusion of the call for a period of 90
days in the Events & Presentations section of the website.
About Invuity®
Invuity, Inc. is a medical technology company focused on
developing and marketing advanced photonics devices to improve the
ability of surgeons to illuminate and visualize the surgical cavity
during open minimally invasive and minimal access surgery. The
company's patented Intelligent Photonics™ technology enables
enhanced surgical precision, efficiency and safety by providing
superior visualization. Clinical applications include breast and
thyroid oncology, plastic reconstructive, spine, orthopedic,
cardiothoracic and general surgery among others. Invuity is
headquartered in San Francisco, CA. For more information, visit
www.invuity.com.
Forward-Looking Statements
This announcement contains forward-looking statements that
involve risks and uncertainties, including statements regarding
financial results, future clinical and economic data regarding the
benefits of our product, future product introductions, future
marketing initiatives, market opportunities and potential results
from future new initiatives. Actual results could differ materially
from those projected in the forward-looking statements as a result
of certain risk factors, including, but not limited to:
fluctuations in demand or failure to gain market acceptance for the
Company's devices; the Company's ability to demonstrate to and gain
approval from hospitals to use the Company's devices; the highly
competitive business environment for surgical medical devices; the
Company's ability to sell its devices at prices that support its
current business strategies; difficulty forecasting future
financial performance; protection of the Company's intellectual
property; and compliance with necessary regulatory clearances or
approvals. The Company undertakes no obligation to update the
forward-looking information in this release. More information about
potential factors that could affect the Company's business and
financial results is included in its filings with the Securities
and Exchange Commission, including, without limitation, under the
captions: "Management's Discussion and Analysis of Financial
Condition and Results of Operations," and "Risk Factors," which are
on file with the Securities and Exchange Commission.
INVUITY,
INC. |
Condensed Statements of
Operations |
(In thousands, except
share and per share amounts) |
(Unaudited) |
|
|
|
Three Months
Ended |
Nine Months
Ended |
|
September
30, |
September
30, |
|
|
|
|
|
|
2015 |
2014 |
2015 |
2014 |
|
|
|
|
|
Revenue |
$5,595 |
$3,724 |
$14,784 |
$8,694 |
Cost of goods sold |
2,035 |
1,294 |
5,605 |
3,231 |
Gross profit |
3,560 |
2,430 |
9,179 |
5,463 |
Operating expenses: |
|
|
|
|
Selling, general and administrative |
10,180 |
6,063 |
29,020 |
16,066 |
Research and development |
2,042 |
1,287 |
5,799 |
3,800 |
Total operating expenses |
12,222 |
7,350 |
34,819 |
19,866 |
Loss from operations |
(8,662) |
(4,920) |
(25,640) |
(14,403) |
Interest expense |
(504) |
(348) |
(1,377) |
(1,070) |
Interest and other income (expense), net |
28 |
(22) |
(499) |
15 |
Net loss |
$ (9,138) |
$ (5,290) |
$ (27,516) |
$ (15,458) |
Net loss per common share, basic and
diluted |
$ (0.69) |
$ (8.11) |
$ (4.84) |
$ (23.86) |
Weighted-average shares used to compute net
loss per common share, basic and diluted |
13,293,707 |
651,959 |
5,684,755 |
647,791 |
|
|
|
|
|
Balance
Sheet |
as of September 30,
2015 (unaudited) |
(In thousands,
except share and per share amounts) |
|
|
September 30, |
December 31, |
|
2015 |
2014 |
|
|
|
Assets |
|
|
Current assets: |
|
|
Cash and cash equivalents |
$54,035 |
$6,048 |
Accounts receivable, net |
3,284 |
2,798 |
Inventory |
4,882 |
4,271 |
Prepaid expenses and other current
assets |
1,372 |
2,486 |
Total current assets |
63,573 |
15,603 |
Restricted cash |
1,090 |
1,125 |
Property and equipment, net |
9,014 |
8,541 |
Other non-current assets |
-- |
55 |
Total assets |
$73,677 |
$25,324 |
Liabilities, Convertible Preferred
Stock and Stockholders' Equity (Deficit) |
|
|
Current liabilities: |
|
|
Accounts payable |
1,108 |
$1,075 |
Accrued and other current
liabilities |
3,338 |
4,162 |
Total current liabilities |
4,446 |
5,237 |
Deferred rent |
2,826 |
2,676 |
Convertible preferred stock warrant
liability |
-- |
136 |
Long-term debt—related party |
14,444 |
9,347 |
Total liabilities |
21,716 |
17,396 |
Commitments and contingencies |
|
|
Convertible preferred stock, $0.001 par
value—0 and 6,207,320 shares authorized at September 30, 2015 and
December 31, 2014, respectively; 0 and 6,056,403 shares issued and
outstanding at September 30, 2015 and December 31, 2014,
respectively |
-- |
73,755 |
Stockholders' equity (deficit): |
|
|
Preferred stock, $0.001 par value—10,000,000
and no shares authorized at September 30, 2015 and December 31,
2014, respectively; no shares issued and outstanding at September
30, 2015 and December 31, 2014 |
-- |
-- |
Common stock, $0.001 par value—100,000,000
and 9,189,189 shares authorized at September 30, 2015 and December
31, 2014, respectively; 13,305,713 and 711,249 shares issued and
outstanding at September 30, 2015 and December 31, 2014,
respectively |
13 |
1 |
Additional paid-in capital |
147,501 |
2,209 |
Accumulated deficit |
(95,553) |
(68,037) |
Total stockholders' equity (deficit) |
51,961 |
(65,827) |
Total liabilities, convertible preferred
stock and stockholders' equity (deficit) |
$73,677 |
$25,324 |
|
|
|
CONTACT: Company Contact:
Jim Mackaness
Chief Financial Officer
Invuity, Inc.
415-655-2129
Investors:
Matt Clawson
Pure Communications
949-370-8500
irdept@invuity.com
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