Intersect ENT, Inc. XENT, a company dedicated to transforming care for patients with ear, nose and throat conditions, today reported financial results for the third quarter ended September 30, 2019.
Total revenue was $24.1 million for the third quarter of 2019 compared to $24.7 million for the same period of 2018. This decrease resulted from lower unit sales of the PROPEL® family of products, partially offset by the growth in adoption of SINUVA®, which contributed $1.1 million, or 5% of third quarter 2019 revenue.
Gross profit for the third quarter was $19.2 million and gross margin was 80%, compared to gross profit of $19.5 million and gross margin of 79% for the same period of 2018.
Operating expenses for the third quarter of 2019 were $32.6 million, compared to $27.6 million in the same period of 2018, an increase of 18%. R&D expenses increased to $6.1 million from $4.9 million, primarily due to expenses related to the company's investigational ASCEND drug-coated sinus balloon and an increase in personnel-related expenses. SG&A expenses increased to $26.4 million from $22.8 million, primarily due to the expansion of SINUVA commercial and market access activities, including headcount, marketing and consulting expenses, and the incremental stock-based compensation associated with the leadership change.
The balance of cash, cash equivalents and short-term investments was $89.2 million, compared to $93.5 million at the start of the quarter.
Outlook
Intersect ENT is maintaining its outlook for revenue for the full year 2019 to be approximately flat compared with 2018 revenue of $108.5 million. The company's full year 2019 outlook for gross margin remains in the range of 80% to 81% and for operating expenses in the range of $135 to $137 million.
Webcast and Conference Call Information
Intersect ENT will host a conference call at 8:00 a.m. ET (5:00 a.m. PT) to discuss the company's third quarter 2019 results and business outlook. To access the conference call via the internet, go to the "Investor Relations" page of the company's website at www.intersectENT.com. To access the live conference call via phone, dial 1-844-850-0548 and ask to join the Intersect ENT call. International callers may access the live call by dialing 1-412-317-5205. Participants may expedite telephone access by pre-registering for the call using the following link: http://dpregister.com/10135992.
A replay of the conference call may be accessed that same day after 10:00 a.m. ET at www.intersectENT.com or via phone at 1-877-344-7529 or 1-412-317-0088 for international callers. The reference number to enter the replay of the call is 10135992. The dial-in replay will be available for a week after the call and via the internet for approximately one month.
About Intersect ENT®
Intersect ENT is dedicated to transforming ear, nose and throat care by providing innovative, clinically meaningful therapies to physicians and patients. The company's steroid releasing implants are designed to provide mechanical spacing and deliver targeted therapy to the site of disease. In addition, Intersect ENT is continuing to expand its portfolio of products based on the company's unique localized steroid releasing technology and is committed to broadening patient access to less invasive and more cost-effective care.
For additional information on the company or the products including risks and benefits please visit www.IntersectENT.com. For more information about SINUVA, please visit www.SINUVA.com.
Intersect ENT®, PROPEL® and SINUVA® are registered trademarks of Intersect ENT, Inc.
Forward-Looking Statements
The statements in this press release regarding Intersect ENT's continued growth and financial outlook are "forward-looking" statements. These forward-looking statements are based on Intersect ENT's current expectations and inherently involve significant risks and uncertainties. These statements and risks include the opportunity for our products and their ability to become the standard of care, our growth potential, our ability to drive stronger operational and financial performance, the ability to procure and maintain adequate coverage and reimbursement for our products and/or the procedures in which they are used, and our outlook about 2019 full year revenue, gross margin and operating expenses. Actual results and the timing of events could differ materially from those anticipated in such forward-looking statements as a result of these risks and uncertainties, which are described in our filings on Form 10-K, Form 10-Q and our other filings with the Securities and Exchange Commission (SEC) available at the SEC's Internet site (www.sec.gov). We do not undertake any obligation to update forward-looking statements and expressly disclaims any obligation or undertaking to release publicly any updates or revisions to any forward-looking statements contained herein.
| Intersect ENT, Inc. | ||||||||||||||||
| Condensed Consolidated Statements of Operations | ||||||||||||||||
| (in thousands, except percentages and per share data) | ||||||||||||||||
| (unaudited) | ||||||||||||||||
| Three Months Ended | Nine Months Ended | |||||||||||||||
| September 30, | September 30, | |||||||||||||||
2019 |
2018 |
2019 |
2018 |
|||||||||||||
| Revenue | $ |
24,056 |
|
$ |
24,666 |
|
$ |
77,388 |
|
$ |
75,689 |
|
||||
| Cost of sales |
|
4,876 |
|
|
5,202 |
|
|
14,567 |
|
|
16,242 |
|
||||
| Gross profit |
|
19,180 |
|
|
19,464 |
|
|
62,821 |
|
|
59,447 |
|
||||
| Gross margin |
|
80 |
% |
|
79 |
% |
|
81 |
% |
|
79 |
% |
||||
| Operating expenses: | ||||||||||||||||
| Selling, general and administrative |
|
26,429 |
|
|
22,760 |
|
|
81,247 |
|
|
65,281 |
|
||||
| Research and development |
|
6,145 |
|
|
4,872 |
|
|
18,452 |
|
|
13,519 |
|
||||
| Total operating expenses |
|
32,574 |
|
|
27,632 |
|
|
99,699 |
|
|
78,800 |
|
||||
| Loss from operations |
|
(13,394 |
) |
|
(8,168 |
) |
|
(36,878 |
) |
|
(19,353 |
) |
||||
| Interest income and other, net |
|
546 |
|
|
572 |
|
|
1,841 |
|
|
1,461 |
|
||||
| Net loss | $ |
(12,848 |
) |
$ |
(7,596 |
) |
$ |
(35,037 |
) |
$ |
(17,892 |
) |
||||
| Net loss per share, basic and diluted | $ |
(0.41 |
) |
$ |
(0.25 |
) |
$ |
(1.12 |
) |
$ |
(0.59 |
) |
||||
Weighted average common shares used to compute net loss per share, basic and diluted |
31,483 |
30,475 |
31,256 |
30,208 |
||||||||||||
| Intersect ENT, Inc. | ||||||
| Condensed Consolidated Balance Sheets | ||||||
| (in thousands) | ||||||
| (unaudited) | ||||||
September 30, |
December 31, |
|||||
2019 |
2018 |
|||||
| Assets | ||||||
| Current assets: | ||||||
| Cash, cash equivalents and short-term investments | $ |
89,227 |
$ |
100,773 |
||
| Accounts receivable, net |
|
13,243 |
|
19,616 |
||
| Inventory |
|
16,921 |
|
11,586 |
||
| Prepaid expenses and other current assets |
|
3,809 |
|
2,695 |
||
| Total current assets |
|
123,200 |
|
134,670 |
||
| Property and equipment, net |
|
6,072 |
|
5,878 |
||
| Other non-current assets |
|
1,010 |
|
413 |
||
| Total assets | $ |
130,282 |
$ |
140,961 |
||
| Liabilities and Stockholders' Equity | ||||||
| Current liabilities: | ||||||
| Accounts payable | $ |
4,788 |
$ |
6,202 |
||
| Accrued compensation |
|
12,655 |
|
12,281 |
||
| Other current liabilities |
|
1,912 |
|
1,250 |
||
| Total current liabilities |
|
19,355 |
|
19,733 |
||
| Other non-current liabilities |
|
44 |
|
234 |
||
| Total liabilities |
|
19,399 |
|
19,967 |
||
| Total stockholders' equity |
|
110,883 |
|
120,994 |
||
| Total liabilities and stockholders' equity | $ |
130,282 |
$ |
140,961 |
||
XENT-F
View source version on businesswire.com: https://www.businesswire.com/news/home/20191101005177/en/
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