CLEVELAND, Nov. 12, 2019 /PRNewswire/ -- ViewRay, Inc.
(Nasdaq: VRAY) today announced financial results for the third
quarter ended September 30, 2019.
Third Quarter 2019 Summary:
- Total revenue was $20.9 million
in the quarter, primarily from three revenue units, compared to
$17.7 million, primarily from three
revenue units, for the same period last year.
- Received eight new orders for MRIdian systems, including three
upgrades, totaling approximately $35
million in the third quarter of 2019, compared to orders
totaling approximately $36 million
for the same period last year.
- Total backlog grew to $230.7
million as of September 30,
2019, compared to $200.9
million as of September 30,
2018.
- Cash and cash equivalents were $90.8
million as of September 30,
2019.
- The Company reaffirmed its full year 2019 guidance of revenue
in the range of $80 million to
$95 million, and cash use in the
range of $80 million to $90 million.
"I am pleased with our Q3 results and the progress we are making
across the organization," said Scott
Drake, President and CEO. "Our differentiation in the market
is rooted in unparalleled innovation and clinical data."
Three Month Results Ending September
30, 2019:
Total revenue for the three months ended September 30,
2019, was $20.9 million, compared to $17.7 million for the same period last
year.
Total cost of revenue was $20.3 million, compared to $17.3 million for the same period last
year.
Total gross profit was $0.6
million, compared to $0.4
million for the same period last year.
Total operating expenses were $32.3
million, compared to $24.5
million for the same period last year.
Net loss was $20.8 million, or
$0.21 per share, compared to
$32.9 million, or $0.39 per share, for the same period last
year.
ViewRay had total cash and cash equivalents of $90.8 million at September 30, 2019.
Nine Month Results Ending September
30, 2019:
Total revenue for the nine months, primarily from 11 MRIdian
revenue units, was $71.3 million
compared to $60.3 million for the
same period last year.
Total cost of revenue was $72.9
million compared to $54.3
million for the same period last year.
Total gross profit was $(1.5)
million compared to $6.0
million for the same period last year.
Total operating expenses were $86.9
million compared to $59.6
million for the same period last year.
Net loss was $(85.0) million, or
$(0.87) per share, compared to
$(59.7) million, or $(0.82) per share, for the same period last
year.
Financial Guidance:
The Company reiterated its 2019 guidance of revenue in the range
of $80 million to $95 million, and total cash usage to be in the
range of $80 million to $90 million.
Conference Call and Webcast
ViewRay will hold a conference call to discuss results on
Tuesday, November 12, 2019 at
4:30 p.m. ET / 1:30 p.m. PT. The dial-in numbers are (844)
277-1426 for domestic callers and (336) 525-7129 for international
callers. The conference ID number is 8250536. A live webcast of the
conference call will be available on the investor relations page of
ViewRay's corporate website at www.viewray.com.
After the live webcast, a replay of the webcast will remain
available online on the investor relations page of ViewRay's
corporate website, www.viewray.com, for 14 days following the call.
In addition, a telephonic replay of the call will be available
until November 19, 2019. The replay
dial-in numbers are (855) 859-2056 for domestic callers and (404)
537-3406 for international callers. Please use the conference ID
number 8250536.
About ViewRay
ViewRay, Inc. (Nasdaq: VRAY), designs, manufactures and markets
the MRIdian® radiation therapy system. MRIdian is built upon a
proprietary high-definition MR imaging system designed from the
ground up to address the unique challenges and clinical workflow
for advanced radiation oncology. Unlike MR systems used in
diagnostic radiology, MRIdian's high-definition MR was purpose
built to address specific challenges, including beam distortion,
skin toxicity, and other concerns that potentially may arise when
high magnetic fields interact with radiation beams. ViewRay and
MRIdian are registered trademarks of ViewRay, Inc.
Forward-Looking Statements
This press release contains forward-looking statements within
the meaning of Section 27A of the Private Securities Litigation
Reform Act. Statements in this press release that are not purely
historical are forward-looking statements. Such forward-looking
statements include, among other things, the rate of new orders,
upgrades and installations, ViewRay's financial guidance for the
full year 2019 and ViewRay's conference call to discuss its third
quarter and year to date results. Actual results could differ from
those projected in any forward-looking statements due to numerous
factors. Such factors include, among others, the ability to
commercialize MRIdian Linac System, demand for ViewRay's products,
the ability to convert backlog into revenue, and the timing of
delivery of ViewRay's products, the timing, results and other
uncertainties associated with clinical trials, the ability to raise
the additional funding needed to continue to pursue ViewRay's
business and product development plans, the inherent uncertainties
associated with developing new products or technologies,
competition in the industry in which ViewRay operates and overall
market conditions. For a further description of the risks and
uncertainties that could cause actual results to differ from those
expressed in these forward-looking statements, as well as risks
relating to ViewRay's business in general, see ViewRay's current
and future reports filed with the Securities and Exchange
Commission, including its Annual Report on Form 10-K for the fiscal
year ended December 31, 2018 and its
Quarterly Reports on Form 10-Q for the fiscal quarters ended
March 31, 2019, June 30, 2019 and September 30, 2019, as updated periodically by
the company's other filings with the SEC. These forward-looking
statements are made as of the date of this press release, and
ViewRay assumes no obligation to update the forward-looking
statements, or to update the reasons why actual results could
differ from those projected in the forward-looking statements,
except as required by law.
VIEWRAY,
INC.
|
|
Consolidated
Statements of Operations and Comprehensive Loss
|
(In thousands,
except share and per share data)
|
|
|
|
Three Months
Ended
September 30,
|
|
|
Nine Months
Ended
September 30,
|
|
|
|
2019
|
|
|
2018
|
|
|
2019
|
|
|
2018
|
|
Revenue:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Product
|
|
$
|
18,696
|
|
|
$
|
16,492
|
|
|
$
|
65,475
|
|
|
$
|
57,237
|
|
Service
|
|
|
2,048
|
|
|
|
1,056
|
|
|
|
5,482
|
|
|
|
2,706
|
|
Distribution
rights
|
|
|
118
|
|
|
|
118
|
|
|
|
356
|
|
|
|
356
|
|
Total
revenue
|
|
|
20,862
|
|
|
|
17,666
|
|
|
|
71,313
|
|
|
|
60,299
|
|
Cost of
revenue:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Product
|
|
|
18,521
|
|
|
|
15,199
|
|
|
|
63,368
|
|
|
|
49,564
|
|
Service
|
|
|
1,767
|
|
|
|
2,103
|
|
|
|
9,489
|
|
|
|
4,732
|
|
Total cost of
revenue
|
|
|
20,288
|
|
|
|
17,302
|
|
|
|
72,857
|
|
|
|
54,296
|
|
Gross
margin
|
|
|
574
|
|
|
|
364
|
|
|
|
(1,544)
|
|
|
|
6,003
|
|
Operating
expenses:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Research and
development
|
|
|
5,641
|
|
|
|
4,347
|
|
|
|
17,135
|
|
|
|
12,506
|
|
Selling and
marketing
|
|
|
7,297
|
|
|
|
3,384
|
|
|
|
19,845
|
|
|
|
10,024
|
|
General and
administrative
|
|
|
19,381
|
|
|
|
16,721
|
|
|
|
49,888
|
|
|
|
37,070
|
|
Total operating
expenses
|
|
|
32,319
|
|
|
|
24,452
|
|
|
|
86,868
|
|
|
|
59,600
|
|
Loss from
operations
|
|
|
(31,745)
|
|
|
|
(24,088)
|
|
|
|
(88,412)
|
|
|
|
(53,597)
|
|
Interest
income
|
|
|
484
|
|
|
|
2
|
|
|
|
1,391
|
|
|
|
6
|
|
Interest
expense
|
|
|
(1,069)
|
|
|
|
(1,974)
|
|
|
|
(2,902)
|
|
|
|
(5,758)
|
|
Other income
(expense), net
|
|
|
11,499
|
|
|
|
(6,792)
|
|
|
|
4,933
|
|
|
|
(307)
|
|
Loss before provision
for income taxes
|
|
$
|
(20,831)
|
|
|
$
|
(32,852)
|
|
|
$
|
(84,990)
|
|
|
$
|
(59,656)
|
|
Provision for income
taxes
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
Net loss and
comprehensive loss
|
|
$
|
(20,831)
|
|
|
$
|
(32,852)
|
|
|
$
|
(84,990)
|
|
|
$
|
(59,656)
|
|
Amortization of
beneficial conversion feature related to Series A
convertible preferred stock
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
(2,728)
|
|
Net loss attributable
to common stockholders, basic and diluted
|
|
$
|
(20,831)
|
|
|
$
|
(32,852)
|
|
|
$
|
(84,990)
|
|
|
$
|
(62,384)
|
|
Net loss per share,
basic and diluted
|
|
$
|
(0.21)
|
|
|
$
|
(0.39)
|
|
|
$
|
(0.87)
|
|
|
$
|
(0.82)
|
|
Weighted-average
common shares used to compute net loss per
share
attributable to common stockholders, basic and diluted
|
|
|
99,039,789
|
|
|
|
84,920,996
|
|
|
|
97,763,964
|
|
|
|
76,185,346
|
|
VIEWRAY,
INC.
|
Consolidated
Balance Sheets
|
(In thousands,
except share and per share data)
|
|
|
|
|
September
30,
2019
|
|
|
December
31,
2018
|
|
ASSETS
|
|
|
|
|
|
|
|
|
Current
assets:
|
|
|
|
|
|
|
|
|
Cash and cash
equivalents
|
|
$
|
90,756
|
|
|
$
|
167,432
|
|
Accounts
receivable
|
|
|
33,301
|
|
|
|
36,867
|
|
Inventory
|
|
|
59,622
|
|
|
|
49,462
|
|
Deposits on purchased
inventory
|
|
|
4,883
|
|
|
|
8,142
|
|
Deferred cost of
revenue
|
|
|
3,056
|
|
|
|
9,736
|
|
Prepaid expenses and
other current assets
|
|
|
4,672
|
|
|
|
6,045
|
|
Total current
assets
|
|
|
196,290
|
|
|
|
277,684
|
|
Property and
equipment, net
|
|
|
23,437
|
|
|
|
13,958
|
|
Restricted
cash
|
|
|
1,442
|
|
|
|
1,933
|
|
Intangible assets,
net
|
|
|
57
|
|
|
|
—
|
|
Right-of-use
assets
|
|
|
12,254
|
|
|
|
—
|
|
Other
assets
|
|
|
2,255
|
|
|
|
1,395
|
|
TOTAL
ASSETS
|
|
$
|
235,735
|
|
|
$
|
294,970
|
|
LIABILITIES AND
STOCKHOLDERS' EQUITY
|
|
|
|
|
|
|
|
|
Current
liabilities:
|
|
|
|
|
|
|
|
|
Accounts
payable
|
|
$
|
11,648
|
|
|
$
|
10,207
|
|
Accrued
liabilities
|
|
|
18,835
|
|
|
|
9,983
|
|
Customer
deposits
|
|
|
10,746
|
|
|
|
19,968
|
|
Operating lease
liability, current
|
|
|
2,139
|
|
|
|
—
|
|
Deferred revenue,
current
|
|
|
9,644
|
|
|
|
13,731
|
|
Total current
liabilities
|
|
|
53,012
|
|
|
|
53,889
|
|
Deferred revenue, net
of current portion
|
|
|
4,516
|
|
|
|
5,744
|
|
Long-term
debt
|
|
|
55,489
|
|
|
|
55,364
|
|
Warrant
liabilities
|
|
|
3,194
|
|
|
|
11,844
|
|
Operating lease
liability, noncurrent
|
|
|
11,067
|
|
|
|
—
|
|
Other long-term
liabilities
|
|
|
562
|
|
|
|
820
|
|
TOTAL
LIABILITIES
|
|
|
127,840
|
|
|
|
127,661
|
|
Commitments and
contingencies (Note 6)
|
|
|
|
|
|
|
|
|
Stockholders' equity:
|
|
|
|
|
|
|
|
|
Convertible preferred
stock, par value of $0.01 per share; 10,000,000 shares
authorized
at September 30, 2019
and December 31, 2018; no shares issued and
outstanding at
September 30, 2019 and December 31, 2018
|
|
|
—
|
|
|
|
—
|
|
Common stock, par
value of $0.01 per share; 300,000,000 shares authorized at
September 30, 2019
and December 31, 2018; 99,405,805 and 96,332,023 shares
issued and
outstanding at September 30, 2019 and December 31, 2018
|
|
|
984
|
|
|
|
952
|
|
Additional paid-in
capital
|
|
|
590,878
|
|
|
|
565,334
|
|
Accumulated
deficit
|
|
|
(483,967)
|
|
|
|
(398,977)
|
|
TOTAL
STOCKHOLDERS' EQUITY
|
|
|
107,895
|
|
|
|
167,309
|
|
TOTAL LIABILITIES AND
STOCKHOLDERS' EQUITY
|
|
$
|
235,735
|
|
|
$
|
294,970
|
|
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SOURCE ViewRay, Inc.