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ViewRay Reports Second Quarter 2020 Results

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

 

Cision View original content to download multimedia:http://www.prnewswire.com/news-releases/viewray-reports-second-quarter-2020-results-301103395.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), investors@viewray.com; Media: Karen Hackstaff, Vice President, Strategy and Brand, ViewRay, Inc., +1 408-242-2994, media@viewray.com

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