- Total Revenue of $5.7 Million in the Fourth Quarter; $21.2 Million for the Full Year -
- Recurring Quarterly Revenue Increased 32% Year-over-Year Reflecting Growth in Utilization and System Installed Base -
- Company Ends 2014 with 83 Renaissance Systems Installed Globally Compared to 63 at the End of 2013 -
- Conference Call Today at 8:30 AM ET (3:30 PM IST) -
CAESAREA, Israel — (BUSINESS WIRE) — February 18, 2015 — Mazor Robotics Ltd. (TASE:MZOR; NASDAQGM:MZOR), a developer of innovative guidance systems and complementary products, announced today its financial results for the fourth quarter and full year ended December 31, 2014.
“The continued expansion of the Renaissance system installed base – 83 globally compared to 63 a year ago – reflects the strength of the clinical data and customer satisfaction from the system performance. I believe these factors, along with the increase in customer utilization, will drive greater adoption and expand the presence of Renaissance over time,” commented Ori Hadomi, Mazor's Chief Executive Officer. “We achieved several strategic objectives in 2014 which position us well for 2015. We launched and commercially sold Renaissance systems with the brain module and entered major U.S. metropolitan markets. Internationally, we received China FDA (CFDA) approval, secured orders for the first two commercial systems in China and expanded our presence throughout Asia.”
“As we enter 2015, there are five main priorities that we will focus on to assure our long term success. These areas of focus include: Grow our market footprint, increase utilization, raise the awareness of the Renaissance’s benefits, deliver product enhancements and promote scientific data supporting our value proposition. We are seeing positive trends in all of these areas, supporting my confidence that Mazor will experience growth in 2015 and beyond, with the Renaissance becoming integrated into the standard of care.”
FOURTH QUARTER 2014 FINANCIAL RESULTS ON IFRS BASIS ("GAAP")
Revenue for the three months ended December 31, 2014 was $5.7 million compared to $5.7 million in the year-ago fourth quarter. U.S. generated revenue decreased to $3.4 million compared to $4.2 million in the year-ago quarter, as the Company sold two Renaissance systems in the U.S. market during the fourth quarter of 2014, compared to four systems sold in the 2013 fourth quarter. International revenue increased to $2.3 million from $1.5 million reported in the fourth quarter of 2013, as the Company sold four Renaissance systems in the International market, compared to three systems sold in the 2013 fourth quarter. Revenue from system kit sales, services and other, increased to $2.5 million in the fourth quarter of 2014, representing a 32% increase compared to $1.9 million in the fourth quarter of 2013, due to increased utilization of the Renaissance system.
The 2014 fourth quarter gross margin of 78.4% was nearly equal to the year-ago fourth quarter gross margin of 78.5%.
Total operating expenses were $8.0 million compared to $6.6 million in the fourth quarter of 2013, primarily reflecting the Company’s increased investments in sales and marketing activities. Operating loss was $3.5 million compared to an operating loss of $2.1 million in the year-ago fourth quarter. Net loss for the fourth quarter of 2014 was $3.7 million, or $0.09 per share, compared to a net loss of $2.0 million, or $0.05 per share, in the fourth quarter of 2013.
Cash used in operating activities was $1.9 million compared to $1.3 million used in the fourth quarter of 2013. As of December 31, 2014, cash, cash equivalents and investments totaled $52.2 million.
FOURTH 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 payments in the fourth quarter of 2014. On a non-GAAP basis, the net loss in the fourth quarter of 2014 was $2.9 million, or $0.07 per share, compared to $1.6 million, or $0.04 per share, in the fourth quarter of 2013.
FULL YEAR ENDED DECEMBER 31, 2014 FINANCIAL RESULTS ON IFRS BASIS (“GAAP”)
For the full year ended December 31, 2014, revenue totaled $21.2 million
compared to $20.0 million for the full year ended December 31, 2013.
Recurring revenue from system kit sales, services and other increased to
$9.2 million compared to $6.5 million in the year ended December 31,
2013. The growth in recurring revenue is attributed to the increased
utilization and installed base of the Company’s Renaissance system, both
in the U.S. and globally. Gross margin for the year ended December 31,
2014 was 79.3% compared with 78.6% in year ended December 31, 2013. Net
loss for the year ended December 31, 2014 was $15.3 million, or $0.37
per share, compared to $20.5 million, or $0.57 per share, in the
year-ago period, reflecting a decrease in financing expenses, offset by
an increase in operating expenses, mainly attributed to the continued
investment in sales and marketing activities.