ViewRay® Newsroom

ViewRay Reports Fourth Quarter and Full Year 2016 Financial Results

FDA 510(k) Clearance of MRIdian Linac in February Follows Strong 2016
Company Provides 2017 Financial Guidance

March 16, 2017

CLEVELAND, OH March 16, 2017 — ViewRay, Inc. (Nasdaq: VRAY) today announced financial results for the fourth quarter and full year ended December 31, 2016.

Fourth Quarter 2016 Highlights:

Total revenue of $16.1 million, up from $4.6 million in Q4 2015

Received 4 new orders for MRIdian Systems, totaling $24.3 million, up from 2 orders totaling $11.3 million in Q4 2015

Total backlog grew to $133.2 million, representing 23 signed sales contracts, as of December 31, 2016, up from $84.4 million, representing 15 signed sales contracts, as of December 31, 2015

Full Year 2016 Highlights:

Total revenue of $22.2 million, up from $10.4 million in 2015

Received 13 new orders for MRIdian Systems, totaling $77.0 million, up from 7 new orders totaling $40.1 million 2015

Financing Update:

Completed $26.1 million private placement in January 2017

Raised $21.9 million from the sale of 3.884 million shares of common stock through “at the market offerings” in February and March 2017

“2016 was a transformative year for ViewRay, highlighted by the development of our MRIdian Linac System and expansion of our backlog and installed base,” said Chris A. Raanes, president and chief executive officer of ViewRay. “Moving forward, we expect the recent FDA clearance of our MRIdian Linac System and the growing body of clinical evidence on the benefits of the MRIdian System to be significant catalysts for new orders and installations. On the operational side, we expect installations of our MRIdian Linac Systems to significantly improve our gross margins.”

Financial Results

Total revenue for the fiscal fourth quarter ended December 31, 2016 was $16.1 million, compared to $4.6 million for the same period last year. Total revenue for the full year 2016 was $22.2 million, compared to $10.4 million for the full year 2015.

Cost of product revenue was $17.0 million for the fiscal quarter ended December 31, 2016, compared to $6.4 million for the same period last year. Cost of product revenue was $23.9 million for the full year 2016, compared to $12.7 million for the full year 2015.

Total gross profit (loss) for the fiscal quarter ended December 31, 2016 was $(1.2) million, compared to $(2.2) million for the same period last year. Total gross profit (loss) for the full year 2016 was $(3.6) million, compared to $(4.2) million for the full year 2015.

Total operating expenses for the fiscal quarter ended December 31, 2016 were $9.3 million, compared to $10.8 million for the same period last year. Total operating expenses for the full year 2016 were $40.5 million, compared to $37.3 million for the same period last year.

Net loss for the fiscal quarter ended December 31, 2016 was $(11.0) million, or $(0.25) per share, compared to $(14.1) million, or $(0.37) per share, for the same period last year. Net loss for the full year 2016 was $(50.6) million, or $(1.26) per share, compared to $(45.0) million, or $(2.58) per share, for the full year 2015.

ViewRay had total cash and cash equivalents of $14.2 million at December 31, 2016.

Financial Guidance

For the full year 2017, ViewRay anticipates total revenue to be in the range of $45 million to $50 million, primarily from 7 to 8 MRIdian Linac Systems.

“With FDA clearance in hand, we have started ramping up procurement for the new generation systems and have begun installing the first MRIdian Linac systems,” said Ajay Bansal, Chief Financial Officer of ViewRay. “We expect to recognize revenue for these systems in the second half of 2017 upon system completion and acceptance.” 

Conference Call and Webcast

ViewRay will hold a conference call on Thursday, March 16, 2017 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 68851407. 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 90 days following the call. In addition, a telephonic replay of the call will be available until March 23, 2017. 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 68851407.

About ViewRay

ViewRay®, Inc. (Nasdaq: VRAY) designs, manufactures and markets the MRIdian® radiation therapy system. MRIdian integrates MRI technology, radiation delivery and proprietary software to locate, target and track the position and shape of soft-tissue tumors during radiation. ViewRay believes this combination of enhanced visualization and accuracy will significantly improve outcomes for patients.

ViewRay and MRIdian are registered trademarks of ViewRay, Inc.

Forward Looking Statements:

This press release contains forward-looking statements. 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 and installations, the improvement of ViewRay’s gross margins, the benefits of the MRIdian System’s MRI-guided radiation therapy, ViewRay’s financial guidance for the full year 2017 and ViewRay’s conference call to discuss its fourth quarter and full year 2016 financial 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 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, the ability to commercialize MRIdian Linac System, competition in the industry in which ViewRay operates and overall market conditions. 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. Investors should consult all of the information set forth herein and should also refer to the risk factor disclosure set forth in the reports and other documents ViewRay files with the SEC available atwww.sec.gov.

Contact:

Investor Relations:
Ajay Bansal
Chief Financial Officer
1-844-MRIdian (674-3426) 

Media Enquiries:
Michael Saracen
Senior Director, Marketing
Phone: +1 408-242-2994
Email: media@viewray.com

 

VIEWRAY, INC.

Condensed Consolidated Statements of Operations

(In thousands, except share and per share data)

 

    Three Months Ended December 31,     Year Ended December 31,  
    2016     2015     2016     2015  
Gross Orders   $ 24,270     $ 11,300     $ 77,050     $ 40,096  
Backlog   $ 133,160     $ 84,360     $ 133,160     $ 84,360  
                                 
Revenue:                                
Product   $ 15,315     $ 4,501     $ 20,555     $ 9,620  
Service     691       111       1,504       530  
Distribution Rights     119             178        
Grant                       240  
Total revenue     16,125       4,612       22,237       10,390  
Cost of revenue:                                
Product     17,028       6,362       23,897       12,673  
Service     264       481       1,969       1,871  
Total cost of revenue     17,292       6,843       25,866       14,544  
Gross margin     (1,167 )     (2,231 )     (3,629 )     (4,154 )
Operating expenses:                                
Research and development     2,425       3,041       11,442       10,449  
Selling and marketing     1,350       1,824       5,601       5,139  
General and administrative     5,566       5,906       23,503       21,685  
Total operating expenses     9,341       10,771       40,546       37,273  
Loss from operations     (10,508 )     (13,002 )     (44,175 )     (41,427 )
Interest income           1       2       2  
Interest expense     (1,785 )     (1,076 )     (5,951 )     (3,452 )
Other income (expense), net     1,286       (28 )     (512 )     (117 )
Loss before provision for income taxes   $ (11,007 )   $ (14,105 )   $ (50,636 )   $ (44,994 )
Provision for income taxes           1             1  
Net loss   $ (11,007 )   $ (14,106 )   $ (50,636 )   $ (44,995 )
Net loss per share, basic and diluted   $ (0.25 )   $ (0.37 )   $ (1.26 )   $ (2.58 )
Weighted-average common shares used to compute net loss per share attributable to common stockholders, basic and diluted     43,502,692       38,202,343       40,068,307       17,432,434  
VIEWRAY, INC.

Condensed Consolidated Balance Sheets

(In thousands)

    December 31,  
    2016     2015  
ASSETS                
Current assets:                
Cash and cash equivalents   $ 14,198     $ 20,667  
Accounts receivable     4,200       830  
Inventory     8,082       8,073  
Deposits on purchased inventory     2,522       3,936  
Deferred cost of revenue     3,909       8,782  
Prepaid expenses and other current assets     3,023       1,329  
Total current assets     35,934       43,617  
Property and equipment, net     11,560       7,306  
Restricted cash     1,143       943  
Intangible assets, net     97       200  
Other assets     30       91  
TOTAL ASSETS   $ 48,764     $ 52,157  
LIABILITIES AND STOCKHOLDERS  DEFICIT                
Current liabilities:                
Accounts payable   $ 4,980     $ 4,358  
Accrued liabilities     6,334       5,413  
Customer deposits     19,400       12,763  
Deferred revenue, current portion     6,515       5,616  
Total current liabilities     37,229       28,150  
Long-term debt, net     44,290       29,016  
Warrant liability     2,723        
Deferred revenue, net of current portion     3,918       345  
Other long-term liabilities     4,257       1,603  
TOTAL LIABILITIES     92,417       59,114  
Commitments and contingencies                
Stockholders’ deficit:                
Convertible preferred stock, par value $0.01 per share; 10,000,000 shares authorized at December 31, 2016 and 2015; no shares issued and outstanding at December 31, 2016 and 2015            
Common stock, par value of $0.01 per share; 300,000,000 shares authorized at December 31, 2016 and 2015; 43,581,184 and 38,204,960 shares issued and outstanding at December 31, 2016 and 2015     426       372  
Additional paid-in capital     203,598       189,712  
Accumulated deficit     (247,677 )     (197,041 )
TOTAL STOCKHOLDERS’ DEFICIT     (43,653 )     (6,957 )
TOTAL LIABILITIES AND STOCKHOLDERS’ DEFICIT   $ 48,764     $ 52,157  

 

 


 

 

 


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