Invuity Reports 2017 First Quarter Results
April 26 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 ended March 31, 2017.
Q1 2017 Highlights
- Revenue grew 41% to $9.0 million compared to revenue of $6.4
million in the 2016 first quarter.
- Gross margin of 76.7% improved significantly from gross margin
of 67.1% in the 2016 first quarter.
- Approximately 770 hospitals purchased Invuity devices in the
first quarter of 2017, up from 555 hospitals in the first quarter
of 2016.
- Approximately 269,000 procedures have been performed using
Invuity devices.
- Completed a debt agreement that increases borrowing capacity to
up to $50 million and provides additional financial
flexibility.
"We are off to a solid start to 2017. In the first quarter we
achieved strong 41% revenue growth, continued to execute on our
commercial strategies and enhanced our financial position with a
new debt agreement,” said President and CEO Philip Sawyer.
“The PhotonBlade launch is proceeding according to plan and we have
received very positive feedback from surgeons who believe that this
product has the potential to be highly disruptive in the
market.”
Financial Results
Revenue was $9.0 million in the first quarter of 2017, up 41%
from revenue of $6.4 million in the first quarter of 2016 driven by
an increase in active accounts.
Gross margin for the first quarter was 76.7%, compared to 67.1%
for the same period in 2016. The introduction of our non-conductive
polymer based retractors and overhead efficiencies created as a
result of increased sales volumes contributed to gross margin
expansion.
Total operating expenses for the first quarter were $17.3
million, respectively, compared to $15.9 million in the prior year
period.
The net loss for the first quarter of 2017 was $13.2 million, or
$0.78 loss per share, compared to a net loss of $12.1 million, or
$0.90 loss per share, for the first quarter of 2016. This includes
a charge of $2.3 million related to the prepayment of the Company’s
old term loan, which was prepaid in full in connection with the
recently completed debt financing.
The Company's balance sheet as of March 31, 2017, included total
cash, cash equivalents and short term investments of $34.5
million.
The new debt facility consists of a $30 million term loan
divided in two tranches. The first tranche of $20 million was
funded upon closing and the additional $10 million may be drawn
down prior to December 31, 2018 provided that the Company achieves
a certain revenue milestone. The new agreement also consists of a
$10 million revolving credit facility that may be increased to $20
million at a later date at the Company’s request and with approval
from the lender.
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 first quarter ended March 31, 2017, 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, April 26, 2017.
To join the live call, participants may dial 1-877- 556-8638 (U.S.)
or 1-615-247-0174 (International), Conference ID: 5223865. 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, expectations for the launch of
PhotonBlade, 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.
CONTACT:
Company Contact:Jim MackanessChief Financial OfficerInvuity,
Inc.415-655-2129
Investors:Mark KlausnerWestwicke
Partners443-213-0501irdept@invuity.com
|
|
|
INVUITY, INC. |
|
|
Condensed Consolidated Statements of
Operations |
|
|
(In thousands, except share and per share
amounts) |
|
|
(Unaudited) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
March 31, |
|
|
|
|
2017 |
|
|
2016 |
|
|
|
|
|
|
|
|
|
|
|
|
Revenue |
|
$ |
9,023 |
|
|
$ |
6,404 |
|
|
|
Cost of goods sold |
|
|
2,099 |
|
|
|
2,106 |
|
|
|
Gross profit |
|
|
6,924 |
|
|
|
4,298 |
|
|
|
Operating
expenses: |
|
|
|
|
|
|
|
|
Research
and development |
|
|
2,428 |
|
|
|
2,601 |
|
|
|
Selling,
general and administrative |
|
|
14,853 |
|
|
|
13,320 |
|
|
|
Total
operating expenses |
|
|
17,281 |
|
|
|
15,921 |
|
|
|
Loss from
operations |
|
|
(10,357 |
) |
|
|
(11,623 |
) |
|
|
Interest expense |
|
|
(487 |
) |
|
|
(505 |
) |
|
|
Interest income |
|
|
57 |
|
|
|
36 |
|
|
|
Other expense, net |
|
|
(127 |
) |
|
|
(18 |
) |
|
|
Loss on extinguishment
of debt |
|
|
(2,303 |
) |
|
|
— |
|
|
|
Net loss and
comprehensive loss |
|
$ |
(13,217 |
) |
|
$ |
(12,110 |
) |
|
|
Net loss per common
share, basic and diluted |
|
$ |
(0.78 |
) |
|
$ |
(0.90 |
) |
|
|
Weighted-average shares
used to compute net loss per common share, basic and diluted |
|
|
16,958,332 |
|
|
|
13,392,976 |
|
|
|
|
|
Condensed Balance Sheets |
as of March 31, 2017 and December 31,
2016 |
(In thousands, except share and per share
amounts) |
(Unaudited) |
|
|
|
|
|
|
|
|
|
March 31, |
|
December 31, |
|
|
2017 |
|
|
2016 |
|
|
|
|
|
|
Assets |
|
|
|
|
|
|
Current assets: |
|
|
|
|
|
|
Cash and
cash equivalents |
|
$ |
24,958 |
|
|
$ |
28,300 |
|
Short-term investments |
|
|
9,519 |
|
|
|
10,737 |
|
Restricted cash - current |
|
|
181 |
|
|
|
181 |
|
Accounts
receivable, net |
|
|
6,076 |
|
|
|
5,782 |
|
Inventory |
|
|
5,913 |
|
|
|
5,052 |
|
Prepaid
expenses and other current assets |
|
|
835 |
|
|
|
1,088 |
|
Total
current assets |
|
|
47,482 |
|
|
|
51,140 |
|
Restricted cash |
|
|
909 |
|
|
|
909 |
|
Property
and equipment, net |
|
|
8,086 |
|
|
|
8,286 |
|
Total
assets |
|
$ |
56,477 |
|
|
$ |
60,335 |
|
Liabilities and
Stockholders’ Equity |
|
|
|
|
|
|
Current
liabilities: |
|
|
|
|
|
|
Accounts
payable |
|
$ |
3,259 |
|
|
$ |
2,192 |
|
Accrued
and other current liabilities |
|
|
5,984 |
|
|
|
6,351 |
|
Short-term debt |
|
|
3,000 |
|
|
|
1,362 |
|
Total
current liabilities |
|
|
12,243 |
|
|
|
9,905 |
|
Deferred rent |
|
|
2,685 |
|
|
|
2,721 |
|
Long-term debt |
|
|
19,301 |
|
|
|
13,261 |
|
Total
liabilities |
|
|
34,229 |
|
|
|
25,887 |
|
Commitments and
contingencies |
|
|
|
|
|
|
Stockholders’
equity: |
|
|
|
|
|
|
Preferred
stock, $0.001 par value—10,000,000 shares authorized at
March 31, 2017 and December 31, 2016, no shares
issued and outstanding at March 31, 2017 and
December 31, 2016 |
|
|
— |
|
|
|
— |
|
Common
stock, $0.001 par value—100,000,000 shares authorized at
March 31, 2017 and December 31, 2016
respectively; 16,971,664 and 16,950,940 shares issued and
outstanding at March 31, 2017 and
December 31, 2016, respectively |
|
|
17 |
|
|
|
17 |
|
Additional paid-in capital |
|
|
181,664 |
|
|
|
180,647 |
|
Accumulated deficit |
|
|
(159,433 |
) |
|
|
(146,216 |
) |
Total stockholders’
equity |
|
|
22,248 |
|
|
|
34,448 |
|
Total liabilities and
stockholders’ equity |
|
$ |
56,477 |
|
|
$ |
60,335 |
|
INVUITY, INC. (NASDAQ:IVTY)
Historical Stock Chart
From Jun 2024 to Jul 2024
INVUITY, INC. (NASDAQ:IVTY)
Historical Stock Chart
From Jul 2023 to Jul 2024