Invuity Reports 2016 Fourth Quarter, Annual Financial Results
February 14 2017 - 4:01PM
Invuity, Inc. (NASDAQ:IVTY), a leading medical technology company
focused on minimal access surgery, today reported financial results
for the three months and year ended December 31, 2016.
Q4 2016 Highlights
- Revenue grew 50% to $9.4 million compared to revenue of $6.2
million in the 2015 fourth quarter.
- Gross margin expansion continued to 74.3% compared to 65.9% in
the 2015 fourth quarter.
- Approximately 745 hospitals purchased Invuity devices in the
fourth quarter of 2016, up from 530 hospitals in the fourth quarter
of 2015.
- Approximately 240,000 procedures have been performed using
Invuity devices.
“We finished 2016 on a strong note, delivering 50%
year-over-year growth in the fourth quarter,” said President and
CEO Philip Sawyer. “In 2017, we will continue to drive toward our
goal of leadership in minimal access surgery through consistent
execution of our commercial strategies coupled with the
introduction of innovative, disruptive products.”
Financial Results
Revenue was $9.4 million in the fourth quarter of 2016, up 50%
from revenue of $6.2 million in the fourth quarter of 2015 driven
by an increase in active accounts and an increase in revenue per
account. For the 2016 full year, revenue was $32.5 million, an
increase of 54% over revenue of $21.0 million in 2015.
Gross margin for the fourth quarter and full-year 2016 was 74.3%
and 72.8%, respectively, compared to 65.9% and 63.2% for the same
periods in 2015. Gross margin expansion has been helped by the
introduction of our non-conductive polymer based retractors, and by
overhead efficiencies created as a result of increased sales
volumes.
Total operating expenses for the fourth quarter and full-year
2016 were $16.0 million and $62.3 million, respectively, compared
to $13.7 million and $48.5 million in the prior year periods. The
increase in operating expenses is due to continued investment in
our commercial platform, new product development costs and related
increases in corporate infrastructure.
The net loss for the fourth quarter of 2016 was $9.6 million, or
$0.56 loss per share, compared to a net loss of $10.1 million, or
$0.76 loss per share, for the fourth quarter of 2015. The net loss
for full-year 2016 was $40.6 million, or $2.73 loss per share,
compared to $37.6 million, or $4.94 loss per share, for 2015.
The Company's balance sheet as of December 31, 2016, included
total cash, cash equivalents and short term investments of $39.0
million.
Business Outlook
Invuity is reiterating its revenue guidance for 2017 in the
range of $42 million to $44 million.
Conference Call
Invuity's management will discuss the Company's financial
results for the fourth quarter ended December 31, 2016, and provide
a general business update during a conference call beginning at
2:00 p.m. Pacific Time / 5:00 p.m. Eastern Time today, February 14,
2017. To join the live call, participants may dial 1-877-556-8638
(U.S.) or 1-615-247-0174 (International), Conference ID:
59656880. 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 leading medical technology company focused on
developing and marketing advanced surgical devices to improve the
ability of physicians to perform minimal access surgery through
smaller and hidden incisions. The company's patented Intelligent
Photonics™ technology delivers enhanced visualization which
facilitates surgical precision, efficiency and safety. In addition,
the company utilizes comprehensive strategic marketing programs to
create stronger institutional partnerships. Clinical applications
include women’s health, encompassing breast cancer and breast
reconstruction surgery, gynecology and thyroid surgery.
Additional applications include procedures for electrophysiology,
spine, orthopedic, cardiothoracic, and general surgery. 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 projections for 2017, future product introductions,
future sales and marketing initiatives, and market opportunities.
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
December 31, |
|
Year Ended
December 31, |
|
|
2016 |
|
2015 |
|
2016 |
|
2015 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenue |
|
$ |
9,356 |
|
|
$ |
6,246 |
|
|
$ |
32,461 |
|
|
$ |
21,031 |
|
Cost of goods sold |
|
|
2,409 |
|
|
|
2,127 |
|
|
|
8,824 |
|
|
|
7,733 |
|
Gross profit |
|
|
6,947 |
|
|
|
4,119 |
|
|
|
23,637 |
|
|
|
13,298 |
|
Operating
expenses: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Research
and development |
|
|
2,496 |
|
|
|
2,069 |
|
|
|
9,908 |
|
|
|
7,869 |
|
Selling,
general and administrative |
|
|
13,524 |
|
|
|
11,617 |
|
|
|
52,409 |
|
|
|
40,636 |
|
Total
operating expenses |
|
|
16,020 |
|
|
|
13,686 |
|
|
|
62,317 |
|
|
|
48,505 |
|
Loss from
operations |
|
|
(9,073 |
) |
|
|
(9,567 |
) |
|
|
(38,680 |
) |
|
|
(35,207 |
) |
Interest expense |
|
|
(505 |
) |
|
|
(505 |
) |
|
|
(2,018 |
) |
|
|
(1,881 |
) |
Interest and other
income (expense), net |
|
|
28 |
|
|
|
17 |
|
|
|
89 |
|
|
|
(482 |
) |
Net loss |
|
$ |
(9,550 |
) |
|
$ |
(10,055 |
) |
|
$ |
(40,609 |
) |
|
$ |
(37,570 |
) |
Net loss per common
share, basic and diluted |
|
$ |
(0.56 |
) |
|
$ |
(0.76 |
) |
|
$ |
(2.73 |
) |
|
$ |
(4.94 |
) |
Weighted-average shares
used to compute net loss per common share, basic and diluted |
|
|
16,930,612 |
|
|
|
13,307,031 |
|
|
|
14,868,501 |
|
|
|
7,606,172 |
|
Condensed Balance Sheets |
as of December 31, 2016 and December 31,
2015 |
(In thousands, except share and per share
amounts) |
(Unaudited) |
|
|
|
|
|
|
|
|
|
December 31, |
|
|
2016 |
|
2015 |
Assets |
|
|
|
|
|
|
Current assets: |
|
|
|
|
|
|
Cash and
cash equivalents |
|
$ |
28,300 |
|
|
$ |
46,296 |
|
Short-Term Investments |
|
|
10,737 |
|
|
|
— |
|
Restricted cash - Current |
|
|
181 |
|
|
|
— |
|
Accounts
receivable, net |
|
|
5,782 |
|
|
|
3,619 |
|
Inventory |
|
|
5,052 |
|
|
|
5,182 |
|
Prepaid
expenses and other current assets |
|
|
1,088 |
|
|
|
923 |
|
Total
current assets |
|
|
51,140 |
|
|
|
56,020 |
|
Restricted cash |
|
|
909 |
|
|
|
1,090 |
|
Property
and equipment, net |
|
|
8,286 |
|
|
|
9,195 |
|
Other
non-current assets |
|
|
— |
|
|
|
— |
|
Total
assets |
|
$ |
60,335 |
|
|
$ |
66,305 |
|
Liabilities,
Stock and Stockholders’ Equity |
|
|
|
|
|
|
Current
liabilities: |
|
|
|
|
|
|
Accounts
payable |
|
$ |
2,192 |
|
|
$ |
2,458 |
|
Accrued
and other current liabilities |
|
|
6,351 |
|
|
|
4,214 |
|
Short-term debt—related party |
|
|
1,362 |
|
|
|
— |
|
Total
current liabilities |
|
|
9,905 |
|
|
|
6,672 |
|
Deferred rent |
|
|
2,721 |
|
|
|
2,810 |
|
Long-term debt—related
party |
|
|
13,261 |
|
|
|
14,480 |
|
Total
liabilities |
|
|
25,887 |
|
|
|
23,962 |
|
Commitments and
contingencies |
|
|
|
|
|
|
Stockholders’
equity: |
|
|
|
|
|
|
Preferred
stock, $0.001 par value—10,000,000 shares authorized at
December 31, 2016 and December 31, 2015,
respectively; no shares issued and outstanding at
December 31, 2016 and December 31, 2015 |
|
|
— |
|
|
|
— |
|
Common
stock, $0.001 par value—200,000,000 shares authorized at
December 31, 2016 and December 31, 2015
respectively; 16,950,940 and 13,392,358 shares issued and
outstanding at December 31, 2016 and
December 31, 2015, respectively |
|
|
17 |
|
|
|
13 |
|
Additional paid-in capital |
|
|
180,647 |
|
|
|
147,937 |
|
Accumulated deficit |
|
|
(146,216 |
) |
|
|
(105,607 |
) |
Total stockholders’
equity |
|
|
34,448 |
|
|
|
42,343 |
|
Total liabilities and
stockholders’ equity |
|
$ |
60,335 |
|
|
$ |
66,305 |
|
CONTACT:
Company Contact:
Jim Mackaness
Chief Financial Officer
Invuity, Inc.
415-655-2129
Investors:
Mark Klausner
Westwicke Partners
443-213-0501
irdept@invuity.com
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