Invuity Announces Fourth Quarter and Full Year 2017 Financial Results
February 13 2018 - 4:01PM
Invuity, Inc. (NASDAQ:IVTY), a leading medical
technology company focused on minimal access surgery, today
announces financial results for the three months and year ended
December 31, 2017.
Q4 and full year 2017 Highlights
- Fourth quarter 2017 revenue grew 20% to $11.2 million compared
to revenue of $9.4 million in the fourth quarter of 2016.
- Full year 2017 revenue grew 22% to $39.6 million compared to
revenue of $32.5 million in 2016.
- Disposable revenue in the fourth quarter of 2017 grew 30% to
$9.5 million compared to $7.3 million in the fourth quarter of
2016.
- Disposable revenue in the full year 2017 grew 32% to $32.3
million compared to revenue of $24.5 million in
2016.
- PhotonBlade® revenue, which is a component of disposable
revenue, was $1.3 million in the fourth quarter.
“We saw a strong debut of PhotonBlade in its first full quarter
of launch, which combined with the growth of our other disposable
products, resulted in 30% growth in disposable revenue. In
addition, I am pleased to report that we made our first commercial
sales of the Adapt Waveguide™ in the quarter. The Adapt is a
flexible waveguide that can be used in conjunction with a variety
of specialized retractors, increasing the number of procedures
available to us and broadening our appeal in key surgical
specialties, particularly gynecology,” said President and Chief
Executive Officer Philip Sawyer. “We believe we are well positioned
for strong growth in 2018.”
Financial Results
Revenue was $11.2 million in the fourth quarter of 2017, up 20%
from revenue of $9.4 million in the fourth quarter of 2016 driven
by strong market acceptance of PhotonBlade and continued growth of
the company’s other disposable products. For the 2017 full year,
revenue was $39.6 million, an increase of 22% over revenue of $32.5
million in 2016.
Disposable revenue was $9.5 million in the fourth quarter of
2017, up 30% from revenue of $7.3 million in the fourth quarter of
2016. For the 2017 full year, revenue was $32.3 million, a 32%
increase over revenue of $24.5 million in 2016. Disposable revenue
comes from the sale of our single use devices; waveguides that are
attached to our retractors, illuminated aspirators – both Yankauer
and Frazier designs – and most recently the addition of
PhotonBlade. These revenues are driven by per procedure adoption
and represent the primary driver of our growth.
Gross margin for the fourth quarter was 66.7%. This is in line
with the expectations we set on our last conference call when we
discussed the impact that meaningful PhotonBlade sales and ongoing
limited sales of PhotonVue® would have on gross margin. Gross
margin was 74.3% for the same period in 2016. For the 2017 full
year, gross margin was 70.5% in 2017, compared to 72.8% in
2016.
Total operating expenses for the fourth quarter and full year
2017 were $14.1 million and $63.1 million, respectively compared to
$16.0 million and $62.3 million in the prior year periods.
The net loss for the fourth quarter of 2017 was $7.4 million, or
$0.43 loss per share, compared to a net loss of $9.6 million, or
$0.56 loss per share, for the fourth quarter of 2016. The net loss
for full-year 2017 was $39.9 million, or $2.34 loss per share,
compared to $40.6 million, or $2.73 loss per share, for 2016.
The Company's balance sheet as of December 31, 2017, included
total cash, cash equivalents and short-term investments of $21.0
million.
Business Outlook
For fiscal 2018 Invuity expects revenue to exceed $46 million.
The Company expects disposable revenue to grow in excess of 25% in
2018.
Conference Call
Invuity's management will discuss the Company's financial
results for the fourth quarter ended and full year ended
December 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, February
13, 2018. To join the live call, participants may dial 1-877-
556-8638 (U.S.) or 1-615-247-0174 (International), Conference ID:
4988156. 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 2018. 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; the adequacy of the Company’s existing
cash resources and funding requirements; 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
December 31, |
|
Year Ended
December 31, |
|
|
2017 |
|
|
2016 |
|
|
2017 |
|
|
2016 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenue |
|
$ |
11,228 |
|
|
$ |
9,356 |
|
|
$ |
39,619 |
|
|
$ |
32,461 |
|
|
Cost of goods sold |
|
|
3,739 |
|
|
|
2,409 |
|
|
|
11,741 |
|
|
|
8,824 |
|
|
Gross profit |
|
|
7,489 |
|
|
|
6,947 |
|
|
|
27,878 |
|
|
|
23,637 |
|
|
Operating
expenses: |
|
|
|
|
|
|
|
|
|
|
|
|
|
Research
and development |
|
|
1,853 |
|
|
|
2,496 |
|
|
|
9,018 |
|
|
|
9,908 |
|
|
Selling,
general and administrative |
|
|
12,272 |
|
|
|
13,524 |
|
|
|
54,119 |
|
|
|
52,409 |
|
|
Total
operating expenses |
|
|
14,125 |
|
|
|
16,020 |
|
|
|
63,137 |
|
|
|
62,317 |
|
|
Loss from
operations |
|
|
(6,636 |
) |
|
|
(9,073 |
) |
|
|
(35,259 |
) |
|
|
(38,680 |
) |
|
Interest expense |
|
|
(811 |
) |
|
|
(505 |
) |
|
|
(2,370 |
) |
|
|
(2,018 |
) |
|
Interest income |
|
|
61 |
|
|
|
42 |
|
|
|
222 |
|
|
|
133 |
|
|
Other income (expense),
net |
|
|
(21 |
) |
|
|
(14 |
) |
|
|
(208 |
) |
|
|
(44 |
) |
|
Loss on extinguishment
of debt |
|
|
— |
|
|
|
— |
|
|
|
(2,303 |
) |
|
|
— |
|
|
Net loss and
comprehensive loss |
|
$ |
(7,407 |
) |
|
$ |
(9,550 |
) |
|
$ |
(39,918 |
) |
|
$ |
(40,609 |
) |
|
Net loss per common
share, basic and diluted |
|
$ |
(0.43 |
) |
|
$ |
(0.56 |
) |
|
$ |
(2.34 |
) |
|
$ |
(2.73 |
) |
|
Weighted-average shares
used to compute net loss per common share, basic and diluted |
|
|
17,154,060 |
|
|
|
16,930,612 |
|
|
|
17,051,037 |
|
|
|
14,868,501 |
|
|
Condensed Balance Sheetsas of
December 31, 2017 and December 31, 2016 (In
thousands, except share and per share
amounts)(Unaudited) |
|
|
|
|
|
|
|
|
|
|
December 31, |
|
|
2017 |
|
|
2016 |
|
|
|
(In thousands, except per share data) |
|
Assets |
|
|
|
|
|
|
Current assets: |
|
|
|
|
|
|
Cash and
cash equivalents |
$ |
17,962 |
|
|
$ |
28,300 |
|
|
Short-term investments |
|
3,040 |
|
|
|
10,737 |
|
|
Restricted cash - current |
|
181 |
|
|
|
181 |
|
|
Accounts
receivable, net |
|
7,421 |
|
|
|
5,782 |
|
|
Inventory |
|
7,436 |
|
|
|
5,052 |
|
|
Prepaid
expenses and other current assets |
|
1,274 |
|
|
|
1,088 |
|
|
Total
current assets |
|
37,314 |
|
|
|
51,140 |
|
|
Restricted cash |
|
727 |
|
|
|
909 |
|
|
Property
and equipment, net |
|
7,169 |
|
|
|
8,286 |
|
|
Other
long-term assets |
|
285 |
|
|
|
— |
|
|
Total
assets |
$ |
45,495 |
|
|
$ |
60,335 |
|
|
Liabilities and
Stockholders’ Equity |
|
|
|
|
|
|
Current
liabilities: |
|
|
|
|
|
|
Accounts
payable |
$ |
3,598 |
|
|
$ |
2,192 |
|
|
Accrued
and other current liabilities |
|
5,179 |
|
|
|
6,351 |
|
|
Short-term debt |
|
5,859 |
|
|
|
1,362 |
|
|
Total
current liabilities |
|
14,636 |
|
|
|
9,905 |
|
|
Deferred rent |
|
2,569 |
|
|
|
2,721 |
|
|
Deferred Revenue -
LT |
|
36 |
|
|
|
— |
|
|
Long-term debt |
|
29,116 |
|
|
|
13,261 |
|
|
Total
liabilities |
|
46,357 |
|
|
|
25,887 |
|
|
Commitments and
contingencies |
|
|
|
|
|
|
Stockholders’
equity: |
|
|
|
|
|
|
Preferred
stock, $0.001 par value—10,000,000 shares authorized at
December 31, 2017 and December 31, 2016, no
shares issued and outstanding at December 31, 2017 and
December 31, 2016 |
|
— |
|
|
|
— |
|
|
Common
stock, $0.001 par value—100,000,000 shares authorized at
December 31, 2017 and December 31, 2016
17,179,258 and 16,950,940 shares issued and outstanding at
December 31, 2017 and December 31, 2016 |
|
17 |
|
|
|
17 |
|
|
Additional paid-in capital |
|
185,255 |
|
|
|
180,647 |
|
|
Accumulated deficit |
|
(186,134 |
) |
|
|
(146,216 |
) |
|
Total stockholders’
equity |
|
(862 |
) |
|
|
34,448 |
|
|
Total liabilities and
stockholders’ equity |
$ |
45,495 |
|
|
$ |
60,335 |
|
|
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