- Received 25 System Orders During the Third Quarter -
- Recurring Revenue of $4.3 Million Increases 30% Due to Continued Surgeon Adoption and Utilization -
- Orders for Six Systems to date in the Fourth Quarter as Momentum Continues to Build for the Mazor X System -
- Conference Call Today at 8:30 AM EST (3:30 PM IST) -
CAESAREA, Israel — (BUSINESS WIRE) — November 8, 2016 — Mazor Robotics Ltd. (TASE: MZOR; NASDAQGM: MZOR), a pioneer and a leader in the field of surgical guidance systems, reported results for the third quarter ended September 30, 2016. As previously announced, Mazor received orders for a record 25 systems in the third quarter, including 15 orders from Medtronic and three additional pre-launch orders for the Mazor X system. Apart from these Mazor X orders, the Company also received purchase orders for seven Renaissance systems, with four in the U.S. and three internationally through its distribution partners in Germany, Australia and Thailand.
THIRD QUARTER HIGHLIGHTS
- Unveiled Mazor X, a transformative surgical assurance platform to enhance predictability of spine surgeries for the benefit of patients and those who treat them.
- Received three pre-launch orders for the Mazor X system from U.S. customers.
- Completed the second equity investment tranche totaling $20 million from Medtronic.
RECENT OPERATING AND FINANCIAL ACHIEVEMENTS
- Commercially launched the Mazor X system on October 26th at the North American Spine Society (NASS) annual meeting.
- A major regional institution in the northeast placed an order for three Mazor X systems.
“This was a strong quarter for Mazor as we received purchase orders for 25 surgical guidance systems, a new record and nearly equivalent to the number of systems ordered in all of 2015,” commented Ori Hadomi, Chief Executive Officer. “Our continued momentum in the second half of 2016 is being driven mainly by two of our significant achievements – the strategic agreement signed in May with Medtronic and the unveiling of the Mazor X system in July. In addition, to date, we have received orders for six systems in the fourth quarter, including five Mazor X orders. This momentum combined with the strong interest we are experiencing for our products, clearly position us to maintain market leadership in surgical guidance spine surgeries."
THIRD QUARTER 2016 FINANCIAL RESULTS ON IFRS BASIS ("GAAP")
Revenue for the three months ended September 30, 2016 increased 52% to $7.6 million compared to $5.0 million in the 2015 third quarter. U.S. generated revenue was $5.7 million compared to $4.3 million in the 2015 third quarter due to recognition of 6 systems sold during the quarter, including three Mazor X systems sold to Medtronic, the Company’s strategic partner, compared to 3 systems sold in the 2015 third quarter. During the third quarter the Company received orders for and delivered four Renaissance systems in the U.S. However, due to the Company’s policy enabling new customers of the Renaissance system to exchange for the Mazor X, revenue was recognized for only two of these Renaissance systems. Revenue from the remaining systems is deferred until the Mazor X orders are supplied or the exchange option expires. The Company also received orders for 18 Mazor X systems, which include the 15 Mazor X systems ordered by Medtronic. Of these, four Mazor X were delivered in the third quarter. As previously disclosed, the three pre-launch Mazor X orders received in the third quarter are expected to be delivered to customers by the end of the 2017 first quarter, at which time the revenue will be recognized.
International revenue was $1.9 million compared to $0.7 million in the third quarter of 2015. The Company received orders for three Renaissance systems from its international distributors in Germany, Australia and Thailand. The Company also recognized revenue from a system delivered to its distribution partner in China, part of a multi system order received in the second quarter of 2016. In total, four systems were recognized in the international market during third quarter of 2016, compared to no system sales in the 2015 third quarter.
Recurring revenue from system kit sales, service and others increased to $4.3 million in the third quarter of 2016, representing a 30% increase compared to $3.3 million in the third quarter of 2015. The increase in recurring revenues is mainly from the increase in the installed base.
The Company’s gross margin for the three months ended September 30, 2016
was 65.7% compared to 75.9% in the third quarter of 2015, primarily
reflecting the discounted pricing for the Mazor X systems delivered to
Medtronic and the recent Renaissance price adjustment to support the
Mazor X launch.