CLEVELAND, Aug. 3, 2018 /PRNewswire/ --ViewRay, Inc. (Nasdaq: VRAY) today announced financial results for the second quarter ended June 30, 2018.
Second Quarter 2018 Highlights:
Total revenue of $16.4 million, primarily from 3 revenue units, up from $0.7 million in 2Q 2017.
Received new orders for MRIdian Systems totaling $34.6 million.
Total backlog grew year-over-year to approximately $200 million as of June 30, 2018, up from approximately $182 million as of June 30, 2017.
Installed MRIdian Linac System at first community hospital in the United States.
510(k) filed for MRIdian's SmartVISION™, the latest advances to further improve tumor and soft tissue visualization.
MRIdian System featured in 55 abstracts at the 2018 Annual Meeting of the American Association of Physicists in Medicine (AAPM).
Scott Drake, President and Chief Executive Officer stated, "I am excited to join the ViewRay team. With compelling early clinical data and our breakthrough MRIdian technology, we have a tremendous opportunity in front of us. We need to build infrastructure and organizational scale to progress from initial installations to seamless operations as we strive to better serve customers and treat cancer patients around the world."
Total revenue for the second quarter ended June 30, 2018 was $16.4 million, compared to $0.7 million for the same period last year. Revenue for the second quarter ended June 30, 2018 included 3 new MRIdian system installs or delivery, all recognized as product revenue.
Total cost of revenue was $16.4 million for the second quarter ended June 30, 2018, compared to $0.8 million for the same period last year. Total cost of revenue for the second quarter included a $2.7 million non-recurring inventory valuation adjustment related to obsolete Cobalt system inventory. Total gross profit for the second quarter ended June 30, 2018 was $0.1 million compared to ($0.1) million for the same period last year.
Total operating expenses for the second quarter ended June 30, 2018 were $18.3 million, compared to $12.6 million for the same period last year.
Net loss for the second quarter ended June 30, 2018 was $(22.0) million, or $(0.30) per share, compared to $(8.4) million, or $($0.15) per share, for the same period last year.
ViewRay had total cash and cash equivalents of $66.1 million at June 30, 2018, compared to $78.9 million as of March 31, 2018.
The Company is reiterating its financial guidance for the full year 2018. The Company anticipates 2018 total revenue to be in the range of $80 million to $90 million.
Conference Call and Webcast
ViewRay will hold a conference call on Friday, August 3, 2018 at 8:30 a.m. ET / 5:30 a.m. PT to discuss the results. The dial-in numbers are (844) 277-1426 for domestic callers and (336) 525-7129 for international callers. The conference ID number is 3649078. 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 August 10, 2018. 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 3649078.
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. 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 2018 and ViewRay's conference call to discuss its fourth quarter and full year 2018 financial 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, 2017. 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.
Condensed Consolidated Statements of Operations and Comprehensive Loss (In thousands, except share and per share data) (Unaudited)
Three Months Ended,
Six Months Ended,
Cost of revenue:
Total cost of revenue
Research and development
Selling and marketing
General and administrative
Total operating expenses
Loss from operations
Other (expense) income, net
Loss before provision for income taxes
Provision for income taxes
Net loss and comprehensive loss
Amortization of beneficial conversion feature related to Series A convertible preferred stock
Net loss attributable to common stockholders, basic and diluted
Net loss per share, basic and diluted
Weighted-average common shares used to compute net loss per
share attributable to common stockholders, basic and diluted
Condensed Consolidated Balance Sheets (In thousands, except share and per share data)
Cash and cash equivalents
Deposits on purchased inventory
Deferred cost of revenue
Prepaid expenses and other current assets
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Property and equipment, net
Intangible assets, net
LIABILITIES AND STOCKHOLDERS' EQUITY
Deferred revenue, current portion
Total current liabilities
Deferred revenue, net of current portion
Other long-term liabilities
Commitments and contingencies
Convertible Preferred stock, par value $0.01 per share; 10,000,000 shares authorized at June 30, 2018 (unaudited) and December 31, 2017; no shares issued and outstanding at June 30, 2018 (unaudited) and December 31, 2017
Common stock, par value of $0.01 per share; 300,000,000 shares authorized at June 30, 2018 (unaudited) and December 31, 2017; 75,188,832 and 67,653,974 shares issued and outstanding at June 30, 2018 (unaudited) and December 31, 2017
Additional paid-in capital
TOTAL STOCKHOLDERS' EQUITY
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY
(1) The consolidated balance sheet as of December 31, 2017 was derived from audited financial statements as of that date.