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ViewRay Reports Third Quarter 2019 Results

CLEVELAND, Nov. 12, 2019 /PRNewswire/ -- ViewRay, Inc. (Nasdaq: VRAY) today announced financial results for the third quarter ended September 30, 2019.

(PRNewsfoto/ViewRay, Inc.)

Third Quarter 2019 Summary:

  • Total revenue was $20.9 million in the quarter, primarily from three revenue units, compared to $17.7 million, primarily from three revenue units, for the same period last year.
  • Received eight new orders for MRIdian systems, including three upgrades, totaling approximately $35 million in the third quarter of 2019, compared to orders totaling approximately $36 million for the same period last year.
  • Total backlog grew to $230.7 million as of September 30, 2019, compared to $200.9 million as of September 30, 2018.
  • Cash and cash equivalents were $90.8 million as of September 30, 2019.
  • The Company reaffirmed its full year 2019 guidance of revenue in the range of $80 million to $95 million, and cash use in the range of $80 million to $90 million.

"I am pleased with our Q3 results and the progress we are making across the organization," said Scott Drake, President and CEO. "Our differentiation in the market is rooted in unparalleled innovation and clinical data."

Three Month Results Ending September 30, 2019:

Total revenue for the three months ended September 30, 2019, was $20.9 million, compared to $17.7 million for the same period last year. 

Total cost of revenue was $20.3 million, compared to $17.3 million for the same period last year.

Total gross profit was $0.6 million, compared to $0.4 million for the same period last year. 

Total operating expenses were $32.3 million, compared to $24.5 million for the same period last year.

Net loss was $20.8 million, or $0.21 per share, compared to $32.9 million, or $0.39 per share, for the same period last year. 

ViewRay had total cash and cash equivalents of $90.8 million at September 30, 2019.

Nine Month Results Ending September 30, 2019:

Total revenue for the nine months, primarily from 11 MRIdian revenue units, was $71.3 million compared to $60.3 million for the same period last year.

Total cost of revenue was $72.9 million compared to $54.3 million for the same period last year.

Total gross profit was $(1.5) million compared to $6.0 million for the same period last year.

Total operating expenses were $86.9 million compared to $59.6 million for the same period last year.

Net loss was $(85.0) million, or $(0.87) per share, compared to $(59.7) million, or $(0.82) per share, for the same period last year.

Financial Guidance:

The Company reiterated its 2019 guidance of revenue in the range of $80 million to $95 million, and total cash usage to be in the range of $80 million to $90 million.

Conference Call and Webcast

ViewRay will hold a conference call to discuss results on Tuesday, November 12, 2019 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 8250536. 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 November 19, 2019. 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 8250536.

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 2019 and ViewRay's conference call to discuss its third quarter 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, 2018 and its Quarterly Reports on Form 10-Q for the fiscal quarters ended March 31, 2019, June 30, 2019 and September 30, 2019, as updated periodically by 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

(In thousands, except share and per share data)

 
   

Three Months Ended
September
 30,

   

Nine Months Ended
September
 30,

 
   

2019

   

2018

   

2019

   

2018

 

Revenue:

                               

Product

 

$

18,696

   

$

16,492

   

$

65,475

   

$

57,237

 

Service

   

2,048

     

1,056

     

5,482

     

2,706

 

Distribution rights

   

118

     

118

     

356

     

356

 

Total revenue

   

20,862

     

17,666

     

71,313

     

60,299

 

Cost of revenue:

                               

Product

   

18,521

     

15,199

     

63,368

     

49,564

 

Service

   

1,767

     

2,103

     

9,489

     

4,732

 

Total cost of revenue

   

20,288

     

17,302

     

72,857

     

54,296

 

Gross margin

   

574

     

364

     

(1,544)

     

6,003

 

Operating expenses:

                               

Research and development

   

5,641

     

4,347

     

17,135

     

12,506

 

Selling and marketing

   

7,297

     

3,384

     

19,845

     

10,024

 

General and administrative

   

19,381

     

16,721

     

49,888

     

37,070

 

Total operating expenses

   

32,319

     

24,452

     

86,868

     

59,600

 

Loss from operations

   

(31,745)

     

(24,088)

     

(88,412)

     

(53,597)

 

Interest income

   

484

     

2

     

1,391

     

6

 

Interest expense

   

(1,069)

     

(1,974)

     

(2,902)

     

(5,758)

 

Other income (expense), net

   

11,499

     

(6,792)

     

4,933

     

(307)

 

Loss before provision for income taxes

 

$

(20,831)

   

$

(32,852)

   

$

(84,990)

   

$

(59,656)

 

Provision for income taxes

   

     

     

     

 

Net loss and comprehensive loss

 

$

(20,831)

   

$

(32,852)

   

$

(84,990)

   

$

(59,656)

 

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

 

$

   

$

   

$

   

$

(2,728)

 

Net loss attributable to common stockholders, basic and diluted

 

$

(20,831)

   

$

(32,852)

   

$

(84,990)

   

$

(62,384)

 

Net loss per share, basic and diluted

 

$

(0.21)

   

$

(0.39)

   

$

(0.87)

   

$

(0.82)

 

Weighted-average common shares used to compute net loss per

   share attributable to common stockholders, basic and diluted

   

99,039,789

     

84,920,996

     

97,763,964

     

76,185,346

 
 

 

VIEWRAY, INC.

Consolidated Balance Sheets

(In thousands, except share and per share data)

 
 
   

September 30,

2019

   

December 31,

2018

 

ASSETS

               

Current assets:

               

Cash and cash equivalents

 

$

90,756

   

$

167,432

 

Accounts receivable

   

33,301

     

36,867

 

Inventory

   

59,622

     

49,462

 

Deposits on purchased inventory

   

4,883

     

8,142

 

Deferred cost of revenue

   

3,056

     

9,736

 

Prepaid expenses and other current assets

   

4,672

     

6,045

 

Total current assets

   

196,290

     

277,684

 

Property and equipment, net

   

23,437

     

13,958

 

Restricted cash

   

1,442

     

1,933

 

Intangible assets, net

   

57

     

 

Right-of-use assets

   

12,254

     

 

Other assets

   

2,255

     

1,395

 

TOTAL ASSETS

 

$

235,735

   

$

294,970

 

LIABILITIES AND STOCKHOLDERS' EQUITY

               

Current liabilities:

               

Accounts payable

 

$

11,648

   

$

10,207

 

Accrued liabilities

   

18,835

     

9,983

 

Customer deposits

   

10,746

     

19,968

 

Operating lease liability, current

   

2,139

     

 

Deferred revenue, current

   

9,644

     

13,731

 

Total current liabilities

   

53,012

     

53,889

 

Deferred revenue, net of current portion

   

4,516

     

5,744

 

Long-term debt

   

55,489

     

55,364

 

Warrant liabilities

   

3,194

     

11,844

 

Operating lease liability, noncurrent

   

11,067

     

 

Other long-term liabilities

   

562

     

820

 

TOTAL LIABILITIES

   

127,840

     

127,661

 

Commitments and contingencies (Note 6)

               

Stockholders' equity:

               

Convertible preferred stock, par value of $0.01 per share; 10,000,000 shares authorized
  
at September 30, 2019 and December 31, 2018; no shares issued and outstanding
   at September 30, 2019 and December 31, 2018

   

     

 

Common stock, par value of $0.01 per share; 300,000,000 shares authorized at
  
September 30, 2019 and December 31, 2018; 99,405,805 and 96,332,023 shares
  
issued and outstanding at September 30, 2019 and December 31, 2018

   

984

     

952

 

Additional paid-in capital

   

590,878

     

565,334

 

Accumulated deficit

   

(483,967)

     

(398,977)

 

TOTAL STOCKHOLDERS' EQUITY

   

107,895

     

167,309

 

TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY

 

$

235,735

   

$

294,970

 

 

 

Cision View original content to download multimedia:http://www.prnewswire.com/news-releases/viewray-reports-third-quarter-2019-results-300956687.html

SOURCE ViewRay, Inc.

Investor Relations: Michaella Gallina, Sr. Director, 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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