- Total Revenue of $4.9 Million; Gross Margin of 79% -
- Recurring Revenue Increases 67% Year-over-Year Reflecting Increased Renaissance System Install Base and Higher Utilization -
- Ends the First Quarter of 2014 with Clinical Installed Base of 37 Renaissance Systems in U.S., 68 Systems Globally -
- Conference Call Today at 8:30 AM EST -
CAESAREA, Israel — (BUSINESS WIRE) — May 7, 2014 — Mazor Robotics Ltd. (TASE:MZOR; NASDAQGM:MZOR), a developer of innovative guidance systems and complementary products, announced today its financial results for the first quarter ended March 31, 2014.
“Our efforts in the 2014 first quarter yielded a number of positive results. We penetrated two teaching centers which enhanced the awareness of the Renaissance system within the broader academic community. With a total of four systems in hospitals in the state, we believe that Georgia is emerging as a new cluster and will one day complement our success in Florida, Texas and southern California,” commented Ori Hadomi, Mazor's Chief Executive Officer. “To build momentum and achieve similar success throughout the year, we will continue to invest our resources to maintain our competitive advantage and build greater awareness among surgeons and hospital administrators. With 34 sites in the United States using Renaissance, we have only penetrated less than 2% of the market so with the increasing level of interest and the focused efforts of our experienced sales and marketing team, I expect to be able to convert these opportunities into sales and clinical success throughout the year.”
FIRST QUARTER 2014 FINANCIAL RESULTS ON IFRS BASIS ("GAAP")
Revenue for the three months ended March 31, 2014 was $4.9 million, flat with the year-ago first quarter. U.S.-generated revenue was $3.6 million compared to $4.1 million in the year-ago quarter, primarily due to lower system sales. International non-U.S. revenue grew to $1.3 million compared to $0.8 million reported in the first quarter of 2013, reflecting two system sales in the first quarter of 2014 compared to one system sale in the 2013 first quarter. Revenue from system kit sales, services and other increased to $2.0 million in the first quarter of 2014, representing a 67% increase compared to $1.2 million in the first quarter of 2013.
Gross margin for three months ended March 31, 2014 was 79%, compared to 81% in the year-ago quarter.
Total operating expenses in the first quarter of 2014 were $7.5 million, compared to $4.6 million in the first quarter of 2013, reflecting the Company’s increased investments in sales, marketing, research and development resources. Operating loss for the first quarter of 2014 was $3.6 million, compared to an operating loss of $0.7 million in the first quarter of 2013. Net loss for the first quarter of 2014 was $3.6 million, or $0.09 per share, compared to a net loss of $10.6 million, or $0.36 per share in the first quarter of 2013.
Cash used in operating activities in the first quarter of 2014 was $5.3 million, compared to $1.6 million in the first quarter of 2013. As of March 31, 2014, cash, cash equivalents and marketable securities totaled $61 million.
FIRST 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 $0.4 million with respect to share-based compensation and intangible asset amortization in the first quarter of 2014. On a non-GAAP-basis, the net loss in the first quarter of 2014 was $3.2 million, or $0.08 per share, compared to $0.4 million, or $0.01 per share in the first quarter of 2013.
CONFERENCE CALL INFORMATION
The Company will host a conference call to discuss these results on Wednesday, May 7, 2014, at 8:30 AM ET (3:30 PM IST). Investors within the United States interested in participating are invited to call 888-549-7750 and reference the Conference ID: 4681223. Participants in Israel can use the toll free dial-in number 1-809-21-4368 and reference the same Conference ID number. All other international participants can use the dial-in number 1-480-629-9770, using the same Conference ID.
A replay of the event will be available for two weeks following the conclusion of the call. To access the replay, callers in the United States can call 1-800-406-7325 and reference the Replay Access Code: 4681223. All international callers can dial 1-30-590-3030, using the same Replay Access Code. To access the webcast, please visit www.mazorrobotics.com, click ‘Investors.’
Use of Non-GAAP Measures
In addition to disclosing financial results calculated in accordance
with generally accepted accounting principles in conformity with
International Financial Reporting Standards (GAAP), this press release
contains non-GAAP financial measures for gross profit, operating
expenses, operating loss, financing income, net income and basic and
diluted earnings per share that exclude the effects of non-cash expense
of amortization of intangible assets, stock-based compensation and
revaluation of the fair value of the derivative instruments. Management
believes that these non-GAAP financial measures provide meaningful
supplemental information regarding the Company’s performance that
enhances management's and investors' ability to evaluate the Company's
net income and earnings per share and to compare them to historical net
income and earnings per share.