Invuity Reports 2017 Second Quarter, Six-Month Financial Results
July 25 2017 - 4:01PM
Achieves revenue growth of 19% over prior year
quarter Updates 2017 revenue guidance
Invuity, Inc. (NASDAQ:IVTY), a leading medical technology company
focused on minimal access surgery, today reported financial results
for the three months and six months ended June 30, 2017.
Q2 2017 Highlights
- Revenue grew 19% to $9.8 million compared to revenue of $8.2
million in the 2016 second quarter.
- Approximately 825 hospitals purchased Invuity devices in the
second quarter of 2017, up from 620 hospitals in the second quarter
of 2016.
- Approximately 300,000 procedures have been performed using
Invuity devices.
"We continued to experience positive underlying
trends in our overall business during the second quarter as we
added new accounts to our installed base and drove increased
disposable usage. The PhotonBlade received an enthusiastic market
reception during its trial commercialization phase, which supports
our conviction regarding its future,” said President and CEO Philip
Sawyer. “During the quarter, we initiated a voluntary
withdrawal of PhotonBlade to enhance the design of the product
prior to full commercial launch, which we anticipate will occur by
the end of the third quarter. This withdrawal from the market has
delayed our commercialization plans and as a result we are
adjusting our guidance. We remain confident that we have a solid
platform to drive long-term shareholder value.”
Financial Results
Revenue was $9.8 million in the second quarter of
2017, up 19% from revenue of $8.2 million in the second quarter of
2016 driven by an increase in active accounts.
Gross margin for the second quarter was 69.1%,
which was negatively impacted by approximately 3.5% due to the
voluntary recall of the PhotonBlade. Gross margin was 74.6% for the
same period in 2016.
Total operating expenses for the second quarter
were $16.6 million, compared to $15.8 million in the prior year
period.
The net loss for the second quarter of 2017 was
$10.4 million, or $0.61 loss per share, compared to a net loss of
$10.1 million, or $0.76 loss per share, for the second quarter of
2016.
The Company's balance sheet as of June 30, 2017
included total cash, cash equivalents and short-term investments of
$26.3 million.
Business Outlook
Invuity is adjusting its revenue guidance for
2017 to $40 million to $42 million from its previous revenue
guidance of $42 million to $44 million.
Conference Call
Invuity's management will discuss the Company's
financial results for the second quarter ended June 30, 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,
July 25, 2017. To join the live call, participants may dial
1-877-556-8638 (U.S.) or 1-615-247-0174 (International), Conference
ID: 51160313. 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 complete successfully the redesign and relaunch of
PhotonBlade; 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 Consolidated Statements of
Operations |
(In thousands, except share and per share
amounts) |
(Unaudited) |
|
|
|
Three Months Ended
June 30, |
|
Six Months Ended
June 30, |
|
|
|
2017 |
|
|
2016 |
|
|
2017 |
|
|
2016 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenue |
|
$ |
9,768 |
|
|
$ |
8,223 |
|
|
$ |
18,791 |
|
|
$ |
14,627 |
|
|
Cost of goods sold |
|
|
3,015 |
|
|
|
2,091 |
|
|
|
5,114 |
|
|
|
4,196 |
|
|
Gross profit |
|
|
6,753 |
|
|
|
6,132 |
|
|
|
13,677 |
|
|
|
10,431 |
|
|
Operating
expenses: |
|
|
|
|
|
|
|
|
|
|
|
|
|
Research
and development |
|
|
2,410 |
|
|
|
2,340 |
|
|
|
4,839 |
|
|
|
4,941 |
|
|
Selling,
general and administrative |
|
|
14,204 |
|
|
|
13,429 |
|
|
|
29,057 |
|
|
|
26,750 |
|
|
Total
operating expenses |
|
|
16,614 |
|
|
|
15,769 |
|
|
|
33,896 |
|
|
|
31,691 |
|
|
Loss from
operations |
|
|
(9,861 |
) |
|
|
(9,637 |
) |
|
|
(20,219 |
) |
|
|
(21,260 |
) |
|
Interest expense |
|
|
(527 |
) |
|
|
(505 |
) |
|
|
(1,014 |
) |
|
|
(1,009 |
) |
|
Interest income |
|
|
53 |
|
|
|
— |
|
|
|
110 |
|
|
|
— |
|
|
Other income (expense),
net |
|
|
(52 |
) |
|
|
13 |
|
|
|
(178 |
) |
|
|
30 |
|
|
Loss on extinguishment
of debt |
|
|
— |
|
|
|
— |
|
|
|
(2,303 |
) |
|
|
— |
|
|
Net loss and
comprehensive loss |
|
$ |
(10,387 |
) |
|
$ |
(10,129 |
) |
|
$ |
(23,604 |
) |
|
$ |
(22,239 |
) |
|
Net loss per common
share, basic and diluted |
|
$ |
(0.61 |
) |
|
$ |
(0.76 |
) |
|
$ |
(1.39 |
) |
|
$ |
(1.66 |
) |
|
Weighted-average shares
used to compute net loss per common share, basic and diluted |
|
|
16,986,074 |
|
|
|
13,404,007 |
|
|
|
16,972,280 |
|
|
|
13,399,775 |
|
|
Condensed Balance Sheets |
as of June 30, 2017 and December 31,
2016 |
(In thousands, except share and per share
amounts) |
(Unaudited) |
|
|
|
June 30, |
|
December 31, |
|
|
2017 |
|
|
2016 |
|
Assets |
|
|
|
|
|
|
Current assets: |
|
|
|
|
|
|
Cash and
cash equivalents |
|
$ |
16,795 |
|
|
$ |
28,300 |
|
Short-term investments |
|
|
9,475 |
|
|
|
10,737 |
|
Restricted cash - current |
|
|
181 |
|
|
|
181 |
|
Accounts
receivable, net |
|
|
5,602 |
|
|
|
5,782 |
|
Inventory |
|
|
5,560 |
|
|
|
5,052 |
|
Prepaid
expenses and other current assets |
|
|
702 |
|
|
|
1,088 |
|
Total
current assets |
|
|
38,315 |
|
|
|
51,140 |
|
Restricted cash |
|
|
909 |
|
|
|
909 |
|
Property
and equipment, net |
|
|
7,821 |
|
|
|
8,286 |
|
Other
long-term assets |
|
|
250 |
|
|
|
— |
|
Total
assets |
|
$ |
47,295 |
|
|
$ |
60,335 |
|
Liabilities and
Stockholders’ Equity |
|
|
|
|
|
|
Current
liabilities: |
|
|
|
|
|
|
Accounts
payable |
|
$ |
2,891 |
|
|
$ |
2,192 |
|
Accrued
and other current liabilities |
|
|
6,056 |
|
|
|
6,351 |
|
Short-term debt |
|
|
3,518 |
|
|
|
1,362 |
|
Total
current liabilities |
|
|
12,465 |
|
|
|
9,905 |
|
Deferred rent |
|
|
2,650 |
|
|
|
2,721 |
|
Long-term debt |
|
|
19,364 |
|
|
|
13,261 |
|
Total
liabilities |
|
|
34,479 |
|
|
|
25,887 |
|
Commitments and
contingencies (Note 8) |
|
|
|
|
|
|
Stockholders’
equity: |
|
|
|
|
|
|
Preferred
stock, $0.001 par value—10,000,000 shares authorized at
June 30, 2017 and December 31, 2016, no shares
issued and outstanding at June 30, 2017 and
December 31, 2016 |
|
|
— |
|
|
|
— |
|
Common
stock, $0.001 par value—100,000,000 shares authorized at
June 30, 2017 and December 31, 2016 17,041,158
and 16,950,940 shares issued and outstanding at
June 30, 2017 and December 31, 2016 |
|
|
17 |
|
|
|
17 |
|
Additional paid-in capital |
|
|
182,619 |
|
|
|
180,647 |
|
Accumulated deficit |
|
|
(169,820 |
) |
|
|
(146,216 |
) |
Total stockholders’
equity |
|
|
12,816 |
|
|
|
34,448 |
|
Total liabilities and
stockholders’ equity |
|
$ |
47,295 |
|
|
$ |
60,335 |
|
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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