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ViewRay Reports Fourth Quarter and Full Year 2019 Results

CLEVELAND, March 12, 2020 /PRNewswire/ -- ViewRay, Inc. (Nasdaq: VRAY) today announced financial results for the fourth quarter and full year ended December 31, 2019. A supplemental presentation for today's conference call is included on the Company's website at http://investors.viewray.com/events/event-details/q4-2019-viewray-inc-earnings-conference-call.

(PRNewsfoto/ViewRay, Inc.)

Full Year 2019 Highlights:

  • Total revenue of $87.8 million compared to 2018 revenue of $81.0 million, which is primarily from 15 revenue units including two system upgrades in each respective year.
  • Received 22 new orders for MRIdian systems, including three upgrades, totaling $118.5 million, compared to 23 new orders totaling $140.7 million in 2018.
  • Total backlog increased to $227.3 million as of December 31, 2019, compared to $212.3 million as of December 31, 2018.
  • Cash and cash equivalents were $226.8 million as of December 31, 2019. The Company received aggregate net proceeds of $138.4 million, after deducting underwriting discounts and commissions and offering expenses payable by the Company, from its December 2019 offering.

Fourth Quarter 2019 Summary:

  • Total revenue was $16.5 million in the quarter, primarily from three revenue units including one system upgrade, compared to $20.7 million, primarily from four revenue units including one system upgrade, for the same period last year.
  • Received four new orders for MRIdian systems totaling approximately $21.2 million in the fourth quarter of 2019, compared to eight new orders for MRIdian systems totaling approximately $48.7 million for the same period last year.

"In 2019 we built significant organizational expertise, made progress on our innovation and clinical pipelines, and fortified our balance sheet," said Scott Drake, President and CEO. "As we look at 2020, our commercial and operational activities are being impacted by the coronavirus and may be further impacted depending upon how the situation unfolds. As we look beyond the coronavirus uncertainty, we are confident in the capabilities we have built and how MRIdian is positioned to improve the paradigm of care."

Financial Results

Total revenue for the three months ended December 31, 2019 was $16.5 million compared to $20.7 million for the same period last year. Total revenue for the full year 2019 was $87.8 million compared to $81.0 million for the full year 2018.

Total cost of revenue for the three months ended December 31, 2019 was $20.4 million compared to $20.1 million for the same period last year. Total cost of revenue was $93.3 million for the full year 2019 compared to $74.4 million for the full year 2018.

Total gross (loss) profit for the three months ended December 31, 2019 was $(3.9) million, compared to $0.6 million for the same period last year. Total gross (loss) profit for the full year 2019 was $(5.5) million compared to $6.6 million for the full year 2018.

Total operating expenses for the three months ended December 31, 2019 were $28.4 million, compared to $22.1 million for the same period last year. Total operating expenses for the full year 2019 were $115.3 million for the full year 2019 compared to $81.7 million for the full year 2018.

Net loss for the three months ended December 31, 2019 was $35.2 million, or $0.31 per share, compared to $16.7 million, or $0.17 per share, for the same period last year. Net loss for the full year 2019 was $120.2 million, or $1.18 per share, compared to $79.1 million, or $0.98 per share, for the full year 2018.

ViewRay had total cash and cash equivalents of $226.8 million at December 31, 2019. From its December 2019 offering, the Company received aggregate net proceeds of $138.4 million, after deducting underwriting discounts and commissions and offering expenses payable by the Company.

Financial Guidance

For the full year 2020, ViewRay anticipates total revenue to be in the range of $58 - $95 million, and total cash usage to be in the range of $60 - $80 million. Most notably, commercial and operational activities are being impacted and may be further impacted by the coronavirus. ViewRay has nine planned installations in 2020 in regions that have travel restrictions currently in place.

Conference Call and Webcast

ViewRay will hold a conference call to discuss results on Thursday, March 12, 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 6095383. 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 March 19, 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 6095383.

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 2020 and ViewRay's conference calls to discuss its fourth quarter 2019 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, 2019 and its 2019 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 December 31,

   

Year Ended December 31,

 
   

2019

   

2018

   

2019

   

2018

 

Gross Orders

 

$

21,210

   

$

48,700

   

$

118,488

   

$

140,717

 

Backlog

 

$

227,312

   

$

212,311

   

$

227,312

   

$

212,311

 
                                 

Revenue:

                               

Product

 

$

14,029

   

$

19,389

   

$

79,504

   

$

76,626

 

Service

   

2,321

     

1,155

     

7,803

     

3,861

 

Distribution rights

   

119

     

119

     

475

     

475

 

Total revenue

   

16,469

     

20,663

     

87,782

     

80,962

 

Cost of revenue:

                               

Product

   

17,078

     

16,958

     

80,446

     

66,522

 

Service

   

3,325

     

3,105

     

12,814

     

7,837

 

Total cost of revenue

   

20,403

     

20,063

     

93,260

     

74,359

 

Gross margin

   

(3,934)

     

600

     

(5,478)

     

6,603

 

Operating expenses:

                               

Research and development

   

6,659

     

4,014

     

23,794

     

16,520

 

Selling and marketing

   

5,961

     

5,038

     

25,806

     

15,062

 

General and administrative

   

15,829

     

13,043

     

65,717

     

50,113

 

Total operating expenses

   

28,449

     

22,095

     

115,317

     

81,695

 

Loss from operations

   

(32,383)

     

(21,495)

     

(120,795)

     

(75,092)

 

Interest income

   

330

     

2

     

1,721

     

8

 

Interest expense

   

(1,425)

     

(1,943)

     

(4,327)

     

(7,701)

 

Other income (expense), net

   

(1,731)

     

6,696

     

3,202

     

6,389

 

Loss before provision for income taxes

 

$

(35,209)

   

$

(16,740)

   

$

(120,199)

   

$

(76,396)

 

Provision for income taxes

   

     

     

     

 

Net loss and comprehensive loss

 

$

(35,209)

   

$

(16,740)

   

$

(120,199)

   

$

(76,396)

 

Amortization of beneficial conversion feature related to Series A
convertible preferred stock

   

     

     

     

(2,728)

 

Net loss attributable to common stockholders, basic and diluted

 

$

(35,209)

   

$

(16,740)

   

$

(120,199)

   

$

(79,124)

 

Net loss per share, basic and diluted

 

$

(0.31)

   

$

(0.17)

   

$

(1.18)

   

$

(0.98)

 

Weighted-average common shares used to compute net loss per

   share attributable to common stockholders, basic and diluted

   

114,585,685

     

95,822,255

     

102,001,954

     

81,123,140

 

 

 

 

VIEWRAY, INC.

Consolidated Balance Sheets

(Unaudited)

(In thousands, except share and per share data)

 
   

December 31,

 
   

2019

   

2018

 

ASSETS

               

Current assets:

               

Cash and cash equivalents

 

$

226,783

   

$

167,432

 

Accounts receivable

   

16,817

     

36,867

 

Inventory

   

55,031

     

49,462

 

Deposits on purchased inventory

   

6,457

     

8,142

 

Deferred cost of revenue

   

3,466

     

9,736

 

Prepaid expenses and other current assets

   

3,310

     

6,045

 

Total current assets

   

311,864

     

277,684

 

Property and equipment, net

   

23,399

     

13,958

 

Restricted cash

   

1,404

     

1,933

 

Intangible assets, net

   

55

     

 

Right-of-use assets

   

11,720

     

 

Other assets

   

1,577

     

1,395

 

TOTAL ASSETS

 

$

350,019

   

$

294,970

 

LIABILITIES AND STOCKHOLDERS' EQUITY

               

Current liabilities:

               

Accounts payable

 

$

13,739

   

$

10,207

 

Accrued liabilities

   

21,390

     

9,983

 

Customer deposits

   

9,662

     

19,968

 

Operating lease liability, current

   

2,264

     

 

Current portion of long-term debt

   

1,556

     

 

Deferred revenue, current portion

   

10,457

     

13,731

 

Total current liabilities

   

59,068

     

53,889

 

Deferred revenue, net of current portion

   

3,553

     

5,744

 

Long-term debt

   

53,995

     

55,364

 

Warrant liability

   

5,373

     

11,844

 

Operating lease liability, noncurrent

   

10,479

     

 

Other long-term liabilities

   

1,377

     

820

 

TOTAL LIABILITIES

   

133,845

     

127,661

 

Commitments and contingencies (Note 6)

               

Stockholders' equity:

               

Convertible preferred stock, par value $0.01 per share; 10,000,000
   shares authorized at December 31, 2019 and 2018; no shares issued
   and outstanding at December 31, 2019 and 2018

   

     

 

Common stock, par value of $0.01 per share; 300,000,000 shares
   authorized at December 31, 2019 and 2018; 147,191,695 and 96,332,023
   shares issued and outstanding at December 31, 2019 and 2018

   

1,462

     

952

 

Additional paid-in capital

   

733,888

     

565,334

 

Accumulated deficit

   

(519,176)

     

(398,977)

 

TOTAL STOCKHOLDERS' EQUITY

   

216,174

     

167,309

 

TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY

 

$

350,019

   

$

294,970

 

 

 

 

Cision View original content to download multimedia:http://www.prnewswire.com/news-releases/viewray-reports-fourth-quarter-and-full-year-2019-results-301022510.html

SOURCE ViewRay, Inc.

Investor Relations: Michaella Gallina, Vice President, Chief of Staff, Head of Investor Relations and Communications, ViewRay, Inc., 1-844-MRIdian (674-3426), Email: investors@viewray.com; Media Enquiries: Karen Hackstaff, Vice President, Strategy and Brand, ViewRay, Inc., Phone: +1 408-242-2994, Email: media@viewray.com

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