On Track to Achieve 2017 Financial GuidanceAugust 7, 2017
CLEVELAND, OH August 7, 2017 — ViewRay, Inc. (Nasdaq: VRAY) today announced financial results for the second quarter and six months ended June 30, 2017.
Second Quarter 2017 Highlights:
- Received record quarterly new orders for MRIdian Linac Systems, totaling $37.3 million, compared to orders totaling $17.1 million in Q2 2016
- Total backlog grew to $182.1 million, as of June 30, 2017, up from $100.7 million as of June 30, 2016.
- In May, compelling early data for pancreatic cancer treatment with MRIdian System was presented at ESTRO 36; presentations also highlighted the speed and benefit of On-Table Adaptive Therapy with MRIdian in routine clinical use (http://www.viewray.com/estro_2017.htm)
- Raised $17.6 million from the sale of 2.6 million shares of common stock through “at the market” offerings
- In July, announced the first patient treatments on the MRIdian Linac at Henry Ford Hospital in Michigan
- In July, at the 2017 Annual Meeting of the American Association of Physicists in Medicine (AAPM), 30 presentations highlighted MRIdian’s capabilities including on-table adaptive planning for escalating dose while sparing healthy tissue and the first clinical experience with MRIdian Linac.
“In the second quarter, we saw increased momentum following the FDA clearance of the MRIdian Linac, highlighted by $37.3 million in new orders”, said Chris A. Raanes, president and chief executive officer of ViewRay. "Our commercial momentum is supported by a growing body of compelling clinical data demonstrating the benefits of MRI visualization and on-table adaptive radiation therapy. We ended the second quarter with $53.9 million of cash which positions us well to execute our business strategy. We remain on track with our guidance for 7 to 8 systems in the second half of 2017, including the recently installed MRIdian Linac system at Henry Ford Hospital in Michigan.”
Total revenue for the second quarter ended June 30, 2017 was $0.7 million, compared to $0.3 million for the same period last year. Total revenue for the six months ended June 30, 2017 was $1.9 million, compared to $5.8 million for the same period last year. Consistent with previous guidance, ViewRay did not recognize revenue from any new MRIdian installations or shipments in the first half of 2017.
Cost of product revenue was $0.3 million for the second quarter ended June 30, 2017, compared to $0.1 million for the same period last year. Total gross profit (loss) for the second quarter ended June 30, 2017 was $(0.1) million, compared to $(0.6) million for the same period last year. Cost of product revenue was $0.6 million for the six months ended June 30, 2017, compared to $6.1 million for the same period last year. Total gross profit (loss) for the six months ended June 30, 2017 was $0.1 million, compared to $(1.6) million for the same period last year.
Total operating expenses for the second quarter ended June 30, 2017 were $12.6 million, compared to $10.2 million for the same period last year. Total operating expenses for the six months ended June 30, 2017 were $23.7 million, compared to $21.2 million for the same period last year.
Net loss for the second quarter ended June 30, 2017 was $(8.4) million, or $(0.15) per share, compared to $(12.1) million, or $(0.32) per share, for the same period last year. Net loss for the six months ended June 30, 2017 was $(36.3) million, or $(0.67) per share, compared to $(25.5) million, or $(0.67) per share, for the same period last year. The net loss in the second quarter and six months ended June 30, 2017 included $6.2 million of other income and $9.1 million of other expense, respectively, primarily from changes in the fair value of warrant liabilities.
ViewRay had total cash and cash equivalents of $53.9 million at June 30, 2017. During the second quarter ended June 30, 2017, the Company raised $17.6 million in aggregate gross proceeds from the sale of common stock through “at the market offerings.”
The Company is reiterating its financial guidance for the full year 2017. The Company anticipates 2017 total revenue to be in the range of $45 million to $50 million, primarily from the sale of 7 to 8 MRIdian Linac Systems.
Conference Call and Webcast
ViewRay will hold a conference call on Monday, August 7, 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 58602724. 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 August 14, 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 58602724.
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, upgrades and installations, ViewRay’s financial guidance for the full year 2017 and ViewRay’s conference call to discuss its second quarter 2017 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. 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, 2016 and its Quarterly Report on Form 10-Q for the quarter ended June 30, 2017. 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.
|Chief Financial Officer|
|Senior Director, Marketing|
|Phone: +1 408-242-2994|
Condensed Consolidated Statements of Operations
(In thousands, except share and per share data)
|Three Months Ended June 30,||Six Months Ended June 30,|
|Cost of revenue:|
|Total cost of revenue||826||863||1,868||7,391|
|Research and development||3,251||2,964||6,165||6,363|
|Selling and marketing||1,871||1,402||2,943||2,681|
|General and administrative||7,463||5,788||14,614||12,108|
|Total operating expenses||12,585||10,154||23,722||21,152|
|Loss from operations||(12,713||)||(10,718||)||(23,665||)||(22,788||)|
|Other income (expense), net||6,151||(20||)||(9,122||)||(237||)|
|Loss before provision for income taxes||$||(8,353||)||$||(12,115||)||$||(36,314||)||$||(25,483||)|
|Provision for income taxes||—||—||—|
|Net loss per share, basic and diluted||$||(0.15||)||$||(0.32||)||$||(0.67||)||$||(0.67||)|
|Weighted-average common shares used to compute net loss per share attributable to common stockholders, basic and diluted||57,230,403||38,234,703||54,540,854||38,223,071|
Condensed Consolidated Balance Sheets
(In thousands, except share and per share data)
|June 30, 2017||December 31, 2016(1)|
|Cash and cash equivalents||$||53,927||$||14,198|
|Deposits on purchased inventory||5,516||2,522|
|Deferred cost of revenue||11,163||3,909|
|Prepaid expenses and other current assets||5,117||3,023|
|Total current assets||92,901||35,934|
|Property and equipment, net||11,388||11,560|
|Intangible assets, net||87||97|
|LIABILITIES AND STOCKHOLDERS’ DEFICIT|
|Deferred revenue, current portion||13,787||6,515|
|Total current liabilities||53,659||37,229|
|Deferred revenue, net of current portion||3,582||3,918|
|Other long-term liabilities||5,757||4,257|
|Commitments and contingencies|
|Preferred stock, par value $0.01 per share; 10,000,000 shares authorized at June 30, 2017 (unaudited) and December 31, 2016; no shares issued and outstanding at June 30, 2017 (unaudited) and December 31, 2016||—||—|
|Common stock, par value of $0.01 per share; 300,000,000 shares authorized at June 30, 2017 (unaudited) and December 31, 2017; 58,915,205
and 43,581,184 shares issued and outstanding at June 30, 2017 (unaudited) and
December 31, 2016
|Additional paid-in capital||266,425||203,598|
|TOTAL STOCKHOLDERS’ DEFICIT||(16,987||)||(43,653||)|
|TOTAL LIABILITIES AND STOCKHOLDERS’ DEFICIT||$||105,551||$||48,764|
(1) The condensed consolidated balance sheet as of December 31, 2016 was derived from audited financial statements as of that date.