ViewRay Reports Fourth Quarter and Full Year 2019 Results

CLEVELAND, March 12, 2020 /PRNewswire/ -- ViewRay, Inc. 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.

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. 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.

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