CLEVELAND, April 30, 2020 /PRNewswire/ -- ViewRay, Inc.
(Nasdaq: VRAY) today announced financial results for the first
quarter ended March 31, 2020.
First Quarter 2020 Highlights:
- Total revenue of $14.3 million,
primarily from three revenue units including one system upgrade,
compared to $20.3 million, primarily
from four revenue units including one system upgrade, in the first
quarter of 2019.
- Received four new orders for MRIdian systems totaling
$22.6 million, compared to seven new
orders totaling $42.8 million in the
first quarter of 2019.
- Total backlog was $230.8 million
as of March 31, 2020, compared to
$237.5 million as of March 31, 2019.
- Cash and cash equivalents were $190.2
million as of March 31,
2020.
- The Company is withdrawing its 2020 guidance, provided on
March 12, 2020, as the full impact of
COVID-19 remains unknown.
- The Company announced Zach
Stassen as Chief Financial Officer.
"As we manage in this challenging environment, we are focused on
what we can control. Value creation lies in driving our clinical,
innovation and commercial pipeline while enhancing efforts to
conserve capital," said Scott Drake,
President and CEO. "On another important note, we are excited
to welcome Zach Stassen as our Chief
Financial Officer. Zach has an excellent track record as an
operator and CFO in the medical technology space. I'd like to thank
our Interim-CFO, Brian Knaley, for
his work to drive the business forward over the last several
quarters."
First Quarter 2020 Financial Results:
Total revenue for the three months ended March 31, 2020 was $14.3 million compared to
$20.3 million for the same period
last year.
Total cost of revenue for the three months ended March 31, 2020 was $16.4
million compared to $25.6
million for the same period last year. Total cost of revenue
in the first quarter of 2019 was impacted by approximately
$7.0 million of charges, primarily
driven by higher than anticipated installation costs related to
historical upgrade commitments.
Total gross profit (loss) for the three months ended
March 31, 2020 was $(2.1) million, compared to $(5.4) million for the same period last year.
Total operating expenses for the three months ended March 31, 2020 were $27.9
million, compared to $25.0
million for the same period last year.
Net loss for the three months ended March
31, 2020 was $27.5 million, or
$0.19 per share, compared to
$33.4 million, or $0.34 per share, for the same period last
year.
ViewRay had total cash and cash equivalents of $190.2 million at March
31, 2020.
Financial Guidance
Given the existing uncertainty related to COVID-19 globally, the
Company is withdrawing 2020 guidance, issued on March 12, 2020, as the full impact of coronavirus
remains unknown.
Conference Call and Webcast
ViewRay will hold a conference call to discuss results on
Thursday, April 30, 2020 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 8982097. 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 May 7, 2020. 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
8982097.
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 purposely
built to deliver high-precision radiation without unnecessary beam
distortion, and consequently, help to mitigate skin toxicity and
other safety concerns that may otherwise arise when high magnetic
fields interact with radiation beams.
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 2020 and ViewRay's conference calls to discuss its first
quarter 2020 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, the timing of delivery
of ViewRay's products, the timing, length and severity of the
recent COVID-19 (coronavirus) pandemic, including its impacts
across our businesses on demand, operations and our global supply
chains, the 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, 2019 and its Quarterly Reports on Form 10-Q, as updated
periodically with 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
|
|
(Unaudited)
|
|
(In thousands,
except share and per share data)
|
|
|
|
Three Months Ended
March 31,
|
|
|
|
2020
|
|
|
2019
|
|
|
Revenue:
|
|
|
|
|
|
|
|
|
|
Product
|
|
$
|
11,470
|
|
|
$
|
18,874
|
|
|
Service
|
|
|
2,661
|
|
|
|
1,291
|
|
|
Distribution
rights
|
|
|
119
|
|
|
|
119
|
|
|
Total
revenue
|
|
|
14,250
|
|
|
|
20,284
|
|
|
Cost of
revenue:
|
|
|
|
|
|
|
|
|
|
Product
|
|
|
13,129
|
|
|
|
22,033
|
|
|
Service
|
|
|
3,228
|
|
|
|
3,615
|
|
|
Total cost of
revenue
|
|
|
16,357
|
|
|
|
25,648
|
|
|
Gross
margin
|
|
|
(2,107)
|
|
|
|
(5,364)
|
|
|
Operating
expenses:
|
|
|
|
|
|
|
|
|
|
Research and
development
|
|
|
6,337
|
|
|
|
5,031
|
|
|
Selling and
marketing
|
|
|
5,823
|
|
|
|
4,885
|
|
|
General and
administrative
|
|
|
15,788
|
|
|
|
15,109
|
|
|
Total operating
expenses
|
|
|
27,948
|
|
|
|
25,025
|
|
|
Loss from
operations
|
|
|
(30,055)
|
|
|
|
(30,389)
|
|
|
Interest
income
|
|
|
695
|
|
|
|
220
|
|
|
Interest
expense
|
|
|
(1,038)
|
|
|
|
(759)
|
|
|
Other income
(expense), net
|
|
|
2,866
|
|
|
|
(2,433)
|
|
|
Loss before provision
for income taxes
|
|
$
|
(27,532)
|
|
|
$
|
(33,361)
|
|
|
Provision for income
taxes
|
|
|
—
|
|
|
|
—
|
|
|
Net loss and
comprehensive loss
|
|
$
|
(27,532)
|
|
|
$
|
(33,361)
|
|
|
Net loss per share,
basic and diluted
|
|
$
|
(0.19)
|
|
|
$
|
(0.34)
|
|
|
Weighted-average
common shares used to compute net loss per
share
attributable to common stockholders, basic and diluted
|
|
|
147,457,116
|
|
|
|
96,741,309
|
|
|
VIEWRAY,
INC.
|
|
Consolidated
Balance Sheets
|
|
(Unaudited)
|
|
(In thousands,
except share and per share data)
|
|
|
|
March 31, 2020
|
|
|
December 31,
2019
|
|
|
ASSETS
|
|
|
|
|
|
|
|
|
|
Current
assets:
|
|
|
|
|
|
|
|
|
|
Cash and cash
equivalents
|
|
$
|
190,208
|
|
|
$
|
226,783
|
|
|
Accounts
receivable
|
|
|
21,490
|
|
|
|
16,817
|
|
|
Inventory
|
|
|
55,031
|
|
|
|
55,031
|
|
|
Deposits on purchased
inventory
|
|
|
4,235
|
|
|
|
6,457
|
|
|
Deferred cost of
revenue
|
|
|
3,554
|
|
|
|
3,466
|
|
|
Prepaid expenses and
other current assets
|
|
|
5,849
|
|
|
|
3,310
|
|
|
Total current
assets
|
|
|
280,367
|
|
|
|
311,864
|
|
|
Property and
equipment, net
|
|
|
23,570
|
|
|
|
23,399
|
|
|
Restricted
cash
|
|
|
1,860
|
|
|
|
1,404
|
|
|
Intangible assets,
net
|
|
|
54
|
|
|
|
55
|
|
|
Right-of-use
assets
|
|
|
11,175
|
|
|
|
11,720
|
|
|
Other
assets
|
|
|
1,717
|
|
|
|
1,577
|
|
|
TOTAL
ASSETS
|
|
$
|
318,743
|
|
|
$
|
350,019
|
|
|
LIABILITIES AND
STOCKHOLDERS' EQUITY
|
|
|
|
|
|
|
|
|
|
Current
liabilities:
|
|
|
|
|
|
|
|
|
|
Accounts
payable
|
|
$
|
7,232
|
|
|
$
|
13,739
|
|
|
Accrued
liabilities
|
|
|
16,310
|
|
|
|
21,390
|
|
|
Customer
deposits
|
|
|
16,307
|
|
|
|
9,662
|
|
|
Operating lease
liability, current
|
|
|
2,332
|
|
|
|
2,264
|
|
|
Current portion of
long-term debt
|
|
|
6,222
|
|
|
|
1,556
|
|
|
Deferred revenue,
current
|
|
|
9,861
|
|
|
|
10,457
|
|
|
Total current
liabilities
|
|
|
58,264
|
|
|
|
59,068
|
|
|
Deferred revenue, net
of current portion
|
|
|
3,193
|
|
|
|
3,553
|
|
|
Long-term
debt
|
|
|
49,375
|
|
|
|
53,995
|
|
|
Warrant
liabilities
|
|
|
2,504
|
|
|
|
5,373
|
|
|
Operating lease
liability, noncurrent
|
|
|
9,865
|
|
|
|
10,479
|
|
|
Other long-term
liabilities
|
|
|
1,528
|
|
|
|
1,377
|
|
|
TOTAL
LIABILITIES
|
|
|
124,729
|
|
|
|
133,845
|
|
|
Commitments and
contingencies (Note 6)
|
|
|
|
|
|
|
|
|
|
Stockholders' equity:
|
|
|
|
|
|
|
|
|
|
Preferred stock, par
value of $0.01 per share; 10,000,000 shares authorized
at March
31, 2020 and December 31, 2019; no shares issued and
outstanding
at March 31, 2020 and
December 31, 2019
|
|
|
—
|
|
|
|
—
|
|
|
Common stock, par
value of $0.01 per share; 300,000,000 shares authorized
at
March 31, 2020
and December 31, 2019; 147,396,985 and 147,191,695 shares
issued and
outstanding at March 31, 2020 and December 31, 2019
|
|
|
1,464
|
|
|
|
1,462
|
|
|
Additional paid-in
capital
|
|
|
739,258
|
|
|
|
733,888
|
|
|
Accumulated
deficit
|
|
|
(546,708)
|
|
|
|
(519,176)
|
|
|
TOTAL
STOCKHOLDERS' EQUITY
|
|
|
194,014
|
|
|
|
216,174
|
|
|
TOTAL LIABILITIES AND
STOCKHOLDERS' EQUITY
|
|
$
|
318,743
|
|
|
$
|
350,019
|
|
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SOURCE ViewRay, Inc.