ViewRay Reports Third Quarter 2015 Financial Results

Company Sees Growing Momentum in Orders and Installations

09 Nov, 2015, 08:30 ET from ViewRay, Inc.

CLEVELAND, Nov. 9, 2015 /PRNewswire/ -- ViewRay, Inc. (OTCQB: VRAY) announced today financial results for the third quarter and nine months ended September 30, 2015.

In the third quarter of 2015, ViewRay achieved new product orders of $11.6 million for MRIdian, the world's first and only MRI-guided radiation therapy system that images and treats cancer patients simultaneously, and total revenue of $5.3 million. During the first nine months of 2015, the Company generated $28.8 million in new product orders for the MRIdian system, up 88% from the prior year period, bringing total system backlog to $78.0 million, representing 14 signed contracts, at the end of the third quarter. The Company installed its first international system during the third quarter at Seoul National University Hospital http://www.viewray.com/press-releases/viewray-announces-first-international-mridian-installation-at-seoul-national-university-hospital.

"We made excellent progress during the quarter, with positive momentum in new orders, and demonstrated our capability to work on multiple installations across three continents," said Chris A. Raanes, President and Chief Executive Officer of ViewRay. "In October at the Annual Meeting of ASTRO, the American Society for Radiation Oncology, leading clinicians reported on encouraging clinical results using real-time visualization and adaptive therapy enabled by MRIdian."

MRIdian was the subject of 19 clinical presentations and posters presented as part of ASTRO's Scientific Sessions. Topics included the advantages of on-table adaptive treatment and outcomes in the treatment of bladder, abdomen and head and neck cancers. Three presentations highlighted the value of MRIdian in delivering accelerated partial breast irradiation (APBI), including tighter margins for treatment delivery with good to excellent cosmesis. Live recordings of the in-booth presentations and a full list of MRIdian-focused Scientific Session presentations are available at http://www.viewray.com/astro_2015.htm.

Also during the third quarter, the company completed an alternative public offering, raising a total of $29.4 million. "The completion of an alternative public offering is part of our overall growth strategy and allowed us to bolster our cash resources to further innovation and commercialization of the MRIdian system," said David Chandler, Chief Financial Officer of ViewRay.

Financial Results
New product orders in the third quarter 2015 were $11.6 million, a 13% increase compared to $10.3 million in the third quarter 2014. New product orders in the nine months ended September 30, 2015 were $28.8 million, an 88% increase compared to $15.3 million in the same period last year. As of September 30, 2015, total order backlog was $78.0 million, representing 14 signed sales contracts. This compares to total order backlog of $32.4 million at September 30, 2014 and $71.9 million at June 30, 2015.

Total revenue in the third quarter 2015 was $5.3 million, a 105% increase compared to $2.6 million in the third quarter 2014. The Company recognized product revenue on one MRIdian system during the third quarter 2015 and 2014, with the increase in revenue due to higher pricing for the system in the third quarter 2015. Total revenue in the nine months ended September 30, 2015 was $5.8 million, compared to $5.9 million in the same period last year. The Company recognized product revenue on one higher priced MRIdian system during the nine months ended September 30, 2015, compared to two MRIdian systems during the same period of 2014.

Total gross profit in the third quarter 2015 was $(0.8) million, compared to $(0.3) million in the third quarter 2014. Total gross profit in the nine months ended September 30, 2015 was $(1.9) million, compared to $(2.3) million in the same period last year.

Total operating expenses in the third quarter 2015 were $8.3 million, compared to $6.8 million in the third quarter 2014. Total operating expenses in the nine months ended September 30, 2015 were $26.5 million, compared to $20.4 million in the same period last year.

Net loss in the third quarter 2015 was $(10.3) million, or $(0.35) per share, compared to $(7.6) million, or $(8.41) per share in the third quarter 2014. Net loss in the nine months ended September 30, 2015 was $(30.9) million, or $(2.96) per share, compared to $(24.2) million, or $(27.25) per share in the same period last year.

About ViewRay

ViewRay, Inc. of Cleveland, Ohio, is a medical device company that develops advanced radiation therapy technology for the treatment of cancer. The MRIdian system provides continuous soft-tissue imaging during treatment, using MRI-guided radiation therapy, so that clinicians are able to see where the actual radiation dose is being delivered and adapt to changes in the patient's anatomy.

ViewRay and MRIdian are registered trademarks of ViewRay, Inc.

ViewRay acknowledges the contribution of the State of Ohio, Department of Development and Third Frontier Commission, which provided funding in support of the MRI Technology Enabling Expansion of MRI into Radiotherapy Guidance Project.

Forward Looking Statements:

This press release contains forward-looking statements. Statements in this press release that are not purely historical are forward-looking statements. Such forward-looking statements include, among other things, references to the momentum in new orders and installations and ViewRay's overall growth strategy. Actual results could differ from those projected in any forward-looking statements due to numerous factors. Such factors include, among others, 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, the ability to commercialize MRIdian, competition in the industry in which ViewRay operates and overall market conditions. 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. Investors should consult all of the information set forth herein and should also refer to the risk factor disclosure set forth in the reports and other documents ViewRay files with the SEC available at www.sec.gov.

Contact:

Investor Relations:
David Chandler
Chief Financial Officer
1-844-MRIdian (674-3426)

Media Enquiries:
Michael Saracen
Senior Director, Marketing
ViewRay, Inc.
Phone: +1 440.703.3210, ext. 200
Email: media@viewray.com

 

VIEWRAY, INC.

Condensed Consolidated Statements of Operations

(In thousands, except share and per share data)

(Unaudited)




Three Months Ended
September 30,



Nine Months Ended
September 30,




2015



2014



2015



2014


New Orders


$

11,596



$

10,280



$

28,796



$

15,280


Backlog


$

77,960



$

32,380



$

77,960



$

32,380



















Revenue:

















Product


$

5,020



$

2,435



$

5,119



$

5,702


Service



56




159




419




229


Grant



240







240





Total revenue



5,316




2,594




5,778




5,931


Cost of revenue:

















Product



5,766




2,753




6,311




7,858


Service



325




158




1,390




413


Total cost of revenue



6,091




2,911




7,701




8,271


Gross margin



(775)




(317)




(1,923)




(2,340)


Operating expenses:

















Research and development



2,902




2,291




7,408




7,451


Selling and marketing



1,124




993




3,315




3,572


General and administrative



4,282




3,483




15,779




9,395


Total operating expenses



8,308




6,767




26,502




20,418


Loss from operations



(9,083)




(7,084)




(28,425)




(22,758)


Interest income






1




1




1


Interest expense



(1,053)




(525)




(2,376)




(1,505)


Other income (expense), net



(124)




39




(89)




82


Loss before provision for income taxes


$

(10,260)



$

(7,569)



$

(30,889)



$

(24,180)


Provision for income taxes













Net loss


$

(10,260)



$

(7,569)



$

(30,889)



$

(24,180)


Deemed capital contribution on repurchase of Series A

   preferred stock


$



$



$



$

9


Net loss attributable to common stockholders


$

(10,260)



$

(7,569)



$

(30,889)



$

(24,171)


Net loss per share attributable to common stockholders, basic and diluted


$

(0.35)



$

(8.41)



$

(2.96)



$

(27.25)


Weighted-average common shares used to compute net loss per share attributable to common stockholders, basic and diluted



29,157,069




900,062




10,433,051




887,189


 


 

VIEWRAY, INC.

Condensed Consolidated Balance Sheets

(In thousands, except share and per share data)










September 30,

2015



December 31,

2014 (1)




(Unaudited)






ASSETS









Current assets:









Cash and cash equivalents


$

32,064



$

11,129


Accounts receivable



1




904


Inventory



9,649




8,238


Deposits on purchased inventory



5,021




2,798


Deferred cost of revenue



4,303




4,712


Prepaid expenses and other current assets



1,290




626


Total current assets



52,328




28,407


Property and equipment, net



5,296




2,931


Restricted cash



553




1,053


Intangible assets, net



139




264


Deferred offering costs






1,419


Other assets



61




31


TOTAL ASSETS


$

58,377



$

34,105


LIABILITIES, CONVERTIBLE PREFERRED STOCK AND STOCKHOLDERS'

   EQUITY (DEFICIT)









Current liabilities:









Notes payable


$



$

240


Accounts payable



1,625




6,134


Accrued liabilities



5,014




4,436


Customer deposits



11,412




6,100


Deferred revenue, current portion



5,249




7,361


Long-term debt, current portion






5,493


Total current liabilities



23,300




29,764


Long-term debt, net of current portion



27,543




9,149


Convertible preferred stock warrant liability






138


Deferred revenue, net of current portion



374





Other long-term liabilities



650




567


TOTAL LIABILITIES



51,867




39,618


Convertible preferred stock






145,110


Stockholders' deficit:









Common stock



372




9


Additional paid-in capital



189,073




1,414


Accumulated deficit



(182,935)




(152,046)


TOTAL STOCKHOLDERS' EQUITY (DEFICIT)



6,510




(150,623)


TOTAL LIABILITIES, CONVERTIBLE PREFERRED STOCK AND

   STOCKHOLDERS' EQUITY (DEFICIT)


$

58,377



$

34,105


(1) The condensed consolidated balance sheet as of December 31, 2014 was derived from audited financial statements as of that date.









 

SOURCE ViewRay, Inc.



RELATED LINKS

http://www.viewray.com