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TearLab Corporation Reports Third Quarter 2018 Financial Results

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ESCONDIDO, Calif., Nov. 07, 2018 (GLOBE NEWSWIRE) -- TearLab Corporation (OTCQB:TEAR) ("TearLab" or the "Company") today reported its consolidated financial results for the third quarter ended September 30, 2018. All dollar amounts are expressed in U.S. currency and results are reported in accordance with United States generally accepted accounting principles except where noted otherwise.

Second Quarter and Recent Highlights

  • Third quarter revenue of $6.2 million
  • Income from operations of $1.0 million, compared to operating loss of $2.7 million in third quarter 2017
  • Expanded the U.S. active device base to 4,822 TearLab Osmolarity Systems
  • Cash position of $8.2 million as of September 30, 2018

For the three months ended September 30, 2018, TearLab's net revenues were $6.2 million, compared with $6.5 million for the same period in 2017. A net total of 139 TearLab Osmolarity® Systems were added in the third quarter of 2018, of which 37 were under the Company's Flex program and 29 were purchased outside of the United States.

The following table sets out the estimated annualized revenue per U.S. device and account analysis for the third quarter ended September 30, 2018:

            Annualized   Annualized
    Active   Active   Revenue   Revenue
Program   Devices   Accounts   Per Device   Per Account
Purchased     1,092   926   $   2,320   $   2,736
Masters     1,726   210   $   2,926   $   24,051
Flex     2,004   694   $   7,076   $   20,433
Total   4,822     1,830        
                 

The Company's reported net loss for the third quarter was approximately ($0.2) million, or ($0.02) basic loss per share.  This compares to a reported net loss of approximately ($3.8) million, or ($0.67) basic loss per share in the third quarter of 2017. 

"We were pleased to report our second consecutive quarter of operational profitability and another quarter of significantly improved net loss, which we believe speaks to the stability of our current business.  Importantly, we generated approximately $1.9 million in cash from operations during the third quarter, increasing our cash position to $8.2 million as of September 30, and providing operational flexibility as we continue working to secure FDA clearance of our next-generation TearLab Discovery™ System," said Seph Jensen, TearLab's Chief Executive Officer.

About TearLab Corporation 
TearLab Corporation (www.tearlab.com) develops and markets lab-on-a-chip technologies that enable eye care practitioners to improve standard of care by objectively and quantitatively testing for disease markers in tears at the point-of-care. The TearLab Osmolarity Test, for diagnosing Dry Eye Disease, is the first assay developed for the award-winning TearLab Osmolarity System. TearLab Corporation's common shares trade on the OTCQB Market under the symbol 'TEAR'.

Forward-Looking Statements 
This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Forward-looking statements include, among others, the ability to achieve FDA clearance and the potential success in developing and commercializing the TearLab Discovery™ System and the TearLab Osmolarity System, the success in Brazil of commercializing the TearLab Osmolarity System, the future success of our new commercial model including the ability to lower costs, maintain our current customers and revenue levels and provide the needed resources to complete the development and generate meaningful clinical data of the TearLab Discovery™ System, the ability for the capital we raised to allow us to meet our business objectives and comply with our debt covenants and the ability to raise any future capital that may be needed to achieve our goals and objectives. These forward-looking statements involve known and unknown risks, uncertainties, and other factors that may cause actual results to be materially different from any future results expressed or implied by the forward-looking statements.  Forward-looking statements are based on management's current, preliminary expectations and are subject to various risks and uncertainties. Many factors, risks and uncertainties may cause our actual results to differ materially from forward-looking statements, including the factors, risks, and uncertainties detailed in our filings with the Securities and Exchange Commission, including but not limited to our Annual Report on Form 10-K for the year ended December 31, 2017, filed with the SEC on March 5, 2018, and our Quarterly Report on Form 10-Q for the quarter ended March 31, 2018, which was filed with SEC on May 11, 2018, our Quarterly Report on Form 10Q for the quarter ended June 30, 2018, which was filed with the SEC on August 10, 2018 and our Quarterly Report on Form 10Q for the quarter ended September 30, 2018  which we expect to file with the SEC on or about November 8, 2018.  We do not undertake to update any forward-looking statements except as required by law.

CONTACT: Investor Contact: 
The Ruth Group 
Lee Roth 
Tel: 646-536-7012 
lroth@theruthgroup.com

TearLab Corp.
Condensed Consolidated Statements of Operations
(Expressed in U.S. Dollars (000's) except for number of shares and net loss per share)
(Unaudited)

    Three months
    September 30,
    2018     2017  
Revenue        
Product sales   $    5,424     $ 5,733  
Reader equipment rentals       728       790  
Total revenue     6,152       6,523  
Cost of goods sold        
Cost of goods sold  (excluding amortization of intangible assets)     2,161       3,028  
Cost of goods sold - reader equipment depreciation     222       415  
Gross profit     3,769       3,080  
Operating expenses        
Sales and marketing        759       2,659  
Clinical, regulatory and research & development        728       898  
General and administrative        1,284       2,260  
Total operating expenses       2,771       5,817  
Gain (loss) from operations        998       (2,737 )
Other income (expense)       (1,193 )     (1,084 )
Net loss and comprehensive loss   $   (195 )   $ (3,821 )
Weighted average shares outstanding  - basic and dilutive        11,005,789       5,742,234  
Net loss per share  – basic and dilutive   $   (0.02 )   $ (0.67 )
 

TearLab Corp.
Condensed Consolidated Statements of Operations 
(Expressed in U.S. Dollars (000's) except for number of shares and net loss per share)
(Unaudited)

    Nine months
    September 30,
    2018     2017  
Revenue        
Product sales   $   16,878     $ 17,949  
Reader equipment rentals       2,133       2,289  
Total revenue     19,011       20,238  
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