- Total Revenue of $6.1 Million in the Third Quarter; Gross Margin of 80.6%
- Recurring Quarterly Revenue Increased 67% Year-over-Year Reflecting Increased System Installed Base and Utilization
- Conference Call Today at 8:30 AM ET (2:30 PM IST)
CAESAREA, Israel — (BUSINESS WIRE) — October 30, 2014 — Mazor Robotics Ltd. (TASE:MZOR; NASDAQGM:MZOR), a developer of innovative guidance systems and complementary products, announced today its financial results for the third quarter and nine months ended September 30, 2014.
“This is a solid start to the second half of 2014 as we sold five Renaissance systems in the U.S. market during the third quarter, increasing the global installed base to 77 systems and matching our best-ever quarterly performance in the U.S.,” commented Ori Hadomi, Chief Executive Officer. “Our performance in the third quarter was due to solid sales execution as we continued to penetrate existing and new markets, including northern California and the upper Midwest. This clearly demonstrates the increasing demand in the U.S. for the Renaissance system, our primary growth market. Internationally, we received China CFDA clearance and we are working with our distribution partner to penetrate this key market – one of our largest opportunities in Asia. As we approach the end of 2014, we believe the data supporting the clinical and economic benefits of the system along with the continued increase in customer utilization will drive greater adoption and expand Renaissance’s global installed base.”
THIRD QUARTER 2014 FINANCIAL RESULTS ON IFRS BASIS ("GAAP")
Revenue for the three months ended September 30, 2014 was $6.1 million compared to $3.1 million in the year-ago third quarter. U.S. generated revenue increased to $5.4 million compared to $2.3 million in the year-ago quarter, primarily due to higher system sales as the Company sold five Renaissance systems in the 2014 third quarter. International (non-U.S.) revenue was $0.7 million compared to $0.8 million reported in the third quarter of 2013. Revenue from system kit sales, services and other increased to $2.5 million in the third quarter of 2014, representing a 67% increase compared to $1.5 million in the third quarter of 2013.
Gross margin expanded to 80.6% compared to 73.2% in the year-ago third quarter, primarily due to greater system sales in the 2014 third quarter.
Total operating expenses were $8.4 million, compared to $5.8 million in the third quarter of 2013, reflecting the Company’s increased investments in sales, marketing and research and development. Operating loss was $3.5 million, similar to the year-ago period. Net loss for the third quarter of 2014 was $3.9 million, or $0.09 per share, compared to a net loss of $3.5 million, or $0.10 per share, in the third quarter of 2013.
Cash used in operating activities was $4.0 million, compared to $2.0 million in the third quarter of 2013. As of September 30, 2014, cash, cash equivalents, marketable securities and long-term investments totaled $54.2 million.
THIRD QUARTER 2014 FINANCIAL RESULTS ON NON-GAAP BASIS
The tables below include a reconciliation of the Company’s GAAP results to non-GAAP results. The reconciliation primarily relates to non-cash expense in the amount of $0.7 million with respect to share-based compensation in the third quarter of 2014. On a non-GAAP basis, the net loss in the third quarter of 2014 was $3.2 million, or $0.08 per share, compared to $3.1 million, or $0.09 per share in the third quarter of 2013.
NINE MONTHS ENDED SEPTEMBER 30, 2014 FINANCIAL RESULTS IFRS BASIS (“GAAP”)
For the nine months ended September 30, 2014, revenue totaled $15.5 million compared to $14.3 million for the nine months ended September 30, 2013. Recurring revenue totaled $6.6 million compared to $4.5 million in the nine months ended September 30, 2013. The growth in recurring revenue is attributed to the increased utilization of the Company’s Renaissance system, both in the U.S. and globally. Gross margin for the nine months ended September 30, 2014 was 79.6% compared with 78.6% in the nine months ended September 30, 2013. Net loss for the nine months ended September 30, 2014 was $11.6 million compared to $18.5 million in the first nine months of 2013, reflecting a decrease in financing expenses.
NINE MONTHS ENDED SEPTEMBER 30, 2014 FINANCIAL RESULTS ON NON-GAAP BASIS
On a non-GAAP basis, the net loss for the first nine months of 2014 was $10.1 million, or $0.24 per share compared to a net loss of $4.1 million, or $0.13 per share in the first nine months of 2013.
CONFERENCE CALL INFORMATION
The company will host a conference call to discuss these results on
Thursday, October 30, 2014, at 8:30 AM ET (2:30 PM IST). Investors
within the United States interested in participating are invited to call
877-269-7756. Participants in Israel can use the toll free dial-in
number 809 406 247. All other international participants can use the
dial-in number 201-689-7817.