CLEVELAND, July 30, 2020 /PRNewswire/ -- ViewRay, Inc.
(Nasdaq: VRAY) today announced financial results for the second
quarter ended June 30, 2020.
Second Quarter 2020 Highlights:
- Total revenue of $14.2 million,
primarily from two revenue units, compared to $30.2 million, primarily from five revenue units,
in the second quarter of 2019.
- Received four new orders for MRIdian systems totaling
$24.6 million, compared to three new
orders totaling $18.1 million in the
second quarter of 2019.
- Total backlog was $232.2 million
as of June 30, 2020, compared to
$219.3 million as of June 30, 2019.
- Cash and cash equivalents were $179.5
million as of June 30,
2020.
- Announced workforce reductions of approximately 20% as well as
a program designed to temporarily retain select senior leaders,
including Shar Matin, while also
providing an option for them to continue with the Company if
certain business and financial targets are achieved.
"We received four orders for MRIdian and used $10.7 million of cash in the second quarter. We
are pleased with these results, the level of customer engagement in
light of the challenging environment, and the significant progress
to elongate our cash runway," said Scott
Drake, President and CEO. "In alignment with our plan, we
recently reduced our workforce by approximately 20%. We believe
these are difficult but necessary decisions while our customers
recover financially. We expect that the market and our business
will recover and advance to its next phase of growth; however, it
is difficult to predict the timeline. Importantly, we are
prioritizing and budgeting increased investment in our clinical and
innovation pipeline. We are excited about the advancements that lie
ahead."
Three Months Ended June 30,
2020 Financial Results:
Total revenue for the three months ended June 30, 2020 was $14.2 million compared to
$30.2 million for the same period
last year.
Total cost of revenue for the three months ended June 30, 2020 was $15.3
million compared to $26.9
million for the same period last year.
Total gross profit (loss) for the three months ended
June 30, 2020 was $(1.0) million, compared to $3.2 million for the same period last year.
Total operating expenses for the three months ended June 30, 2020 were $24.5
million, compared to $29.5
million for the same period last year.
Net loss for the three months ended June
30, 2020 was $26.2 million, or
$0.18 per share, compared to
$30.8 million, or $0.32 per share, for the same period last
year.
ViewRay had total cash and cash equivalents of $179.5 million at June 30,
2020.
Six Months Ended June 30, 2020
Financial Results:
Total revenue for the six months ended June 30, 2020 was $28.5 million compared to
$50.5 million for the same period
last year.
Total cost of revenue for the six months ended June 30, 2020 was $31.6
million compared to $52.6
million for the same period last year.
Total gross profit (loss) for the six months ended
June 30, 2020 was $(3.1) million, compared to $(2.1) million for the same period last year.
Total operating expenses for the six months ended June 30, 2020 were $52.5
million, compared to $54.5
million for the same period last year.
Net loss for the six months ended June
30, 2020 was $53.7 million, or
$0.36 per share, compared to
$64.2 million, or $0.66 per share, for the same period last
year.
Conference Call and Webcast
ViewRay will hold a conference call to discuss results on
Thursday, July 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 4968496. A live webcast of the
conference call will be available on the investor relations page of
ViewRay's corporate website at www.investors.viewray.com.
After the live webcast, a replay will remain available online on
the investor relations page of ViewRay's corporate website,
www.investors.viewray.com, for 14 days following the call. In
addition, a telephonic replay of the call will be available until
August 6, 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
4968496.
About ViewRay®
ViewRay, Inc. (Nasdaq: VRAY), designs, manufactures, and markets
the MRIdian® MR-Guided 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 preliminary second quarter
results and anticipated future operating and financial performance,
and ViewRay's conference call to discuss its second 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
June 30,
|
|
Six Months Ended
June 30,
|
|
2020
|
|
2019
|
|
2020
|
|
2019
|
|
Revenue:
|
|
|
|
|
|
|
|
|
|
|
|
|
Product
|
$
|
10,615
|
|
$
|
27,905
|
|
$
|
22,085
|
|
$
|
46,779
|
|
Service
|
|
3,490
|
|
|
2,143
|
|
|
6,151
|
|
|
3,434
|
|
Distribution
rights
|
|
119
|
|
|
119
|
|
|
238
|
|
|
238
|
|
Total
revenue
|
|
14,224
|
|
|
30,167
|
|
|
28,474
|
|
|
50,451
|
|
Cost of
revenue:
|
|
|
|
|
|
|
|
|
|
|
|
|
Product
|
|
12,714
|
|
|
22,814
|
|
|
25,843
|
|
|
44,847
|
|
Service
|
|
2,552
|
|
|
4,107
|
|
|
5,780
|
|
|
7,722
|
|
Total cost of
revenue
|
|
15,266
|
|
|
26,921
|
|
|
31,623
|
|
|
52,569
|
|
Gross
margin
|
|
(1,042)
|
|
|
3,246
|
|
|
(3,149)
|
|
|
(2,118)
|
|
Operating
expenses:
|
|
|
|
|
|
|
|
|
|
|
|
|
Research and
development
|
|
6,211
|
|
|
6,463
|
|
|
12,548
|
|
|
11,494
|
|
Selling and
marketing
|
|
3,093
|
|
|
7,663
|
|
|
8,916
|
|
|
12,548
|
|
General and
administrative
|
|
15,227
|
|
|
15,398
|
|
|
31,015
|
|
|
30,507
|
|
Total operating
expenses
|
|
24,531
|
|
|
29,524
|
|
|
52,479
|
|
|
54,549
|
|
Loss from
operations
|
|
(25,573)
|
|
|
(26,278)
|
|
|
(55,628)
|
|
|
(56,667)
|
|
Interest
income
|
|
87
|
|
|
687
|
|
|
782
|
|
|
907
|
|
Interest
expense
|
|
(1,071)
|
|
|
(1,074)
|
|
|
(2,109)
|
|
|
(1,833)
|
|
Other income
(expense), net
|
|
405
|
|
|
(4,133)
|
|
|
3,271
|
|
|
(6,566)
|
|
Loss before provision
for income taxes
|
$
|
(26,152)
|
|
$
|
(30,798)
|
|
$
|
(53,684)
|
|
$
|
(64,159)
|
|
Provision for income
taxes
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
Net loss and
comprehensive loss
|
$
|
(26,152)
|
|
$
|
(30,798)
|
|
$
|
(53,684)
|
|
$
|
(64,159)
|
|
Net loss per share,
basic and diluted
|
$
|
(0.18)
|
|
$
|
(0.32)
|
|
$
|
(0.36)
|
|
$
|
(0.66)
|
|
Weighted-average
common shares used to compute net loss per
share
attributable to common stockholders, basic and diluted
|
|
147,563,278
|
|
|
97,572,389
|
|
|
147,506,244
|
|
|
97,129,389
|
|
VIEWRAY,
INC.
Consolidated
Balance Sheets
(Unaudited)
(In thousands,
except share and per share data)
|
|
|
June 30, 2020
|
|
December 31,
2019
|
|
ASSETS
|
|
|
|
|
|
|
Current
assets:
|
|
|
|
|
|
|
Cash and cash
equivalents
|
$
|
179,514
|
|
$
|
226,783
|
|
Accounts
receivable
|
|
22,089
|
|
|
16,817
|
|
Inventory
|
|
48,197
|
|
|
55,031
|
|
Deposits on purchased
inventory
|
|
4,643
|
|
|
6,457
|
|
Deferred cost of
revenue
|
|
6,273
|
|
|
3,466
|
|
Prepaid expenses and
other current assets
|
|
5,568
|
|
|
3,310
|
|
Total current
assets
|
|
266,284
|
|
|
311,864
|
|
Property and
equipment, net
|
|
22,718
|
|
|
23,399
|
|
Restricted
cash
|
|
1,860
|
|
|
1,404
|
|
Intangible assets,
net
|
|
53
|
|
|
55
|
|
Right-of-use
assets
|
|
10,621
|
|
|
11,720
|
|
Other
assets
|
|
1,642
|
|
|
1,577
|
|
TOTAL
ASSETS
|
$
|
303,178
|
|
$
|
350,019
|
|
LIABILITIES AND
STOCKHOLDERS' EQUITY
|
|
|
|
|
|
|
Current
liabilities:
|
|
|
|
|
|
|
Accounts
payable
|
$
|
4,852
|
|
$
|
13,739
|
|
Accrued
liabilities
|
|
17,361
|
|
|
21,390
|
|
Customer
deposits
|
|
16,047
|
|
|
9,662
|
|
Operating lease
liability, current
|
|
2,347
|
|
|
2,264
|
|
Current portion of
long-term debt
|
|
10,889
|
|
|
1,556
|
|
Deferred revenue,
current
|
|
16,788
|
|
|
10,457
|
|
Total current
liabilities
|
|
68,284
|
|
|
59,068
|
|
Deferred revenue, net
of current portion
|
|
3,069
|
|
|
3,553
|
|
Long-term
debt
|
|
44,756
|
|
|
53,995
|
|
Warrant
liabilities
|
|
2,072
|
|
|
5,373
|
|
Operating lease
liability, noncurrent
|
|
9,293
|
|
|
10,479
|
|
Other long-term
liabilities
|
|
1,680
|
|
|
1,377
|
|
TOTAL
LIABILITIES
|
|
129,154
|
|
|
133,845
|
|
Commitments and
contingencies (Note 6)
|
|
|
|
|
|
|
Stockholders' equity:
|
|
|
|
|
|
|
Preferred stock, par
value of $0.01 per share; 10,000,000 shares
authorized
at June
30, 2020 and December 31, 2019; no shares issued and
outstanding
at
June 30, 2020 and December 31, 2019
|
|
—
|
|
|
—
|
|
Common stock, par
value of $0.01 per share; 300,000,000 shares authorized
at
June 30, 2020
and December 31, 2019; 147,616,373 and 147,191,695
shares
issued and
outstanding at June 30, 2020 and December 31, 2019
|
|
1,466
|
|
|
1,462
|
|
Additional paid-in
capital
|
|
745,418
|
|
|
733,888
|
|
Accumulated
deficit
|
|
(572,860)
|
|
|
(519,176)
|
|
TOTAL
STOCKHOLDERS' EQUITY
|
|
174,024
|
|
|
216,174
|
|
TOTAL LIABILITIES AND
STOCKHOLDERS' EQUITY
|
$
|
303,178
|
|
$
|
350,019
|
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SOURCE ViewRay, Inc.