CLEVELAND, Nov. 8, 2018 /PRNewswire/ — ViewRay, Inc. (Nasdaq: VRAY) (“the Company”) today announced financial results for the third quarter ended September 30, 2018.

(PRNewsfoto/ViewRay, Inc.)

Third Quarter 2018 Highlights:

  • Total revenue of $17.7 million, primarily from 3 revenue units.
  • Received new orders for MRIdian systems totaling $36.2 million. The backlog as of September 30, 2018 was $200.9 million.
  • The Company raised net proceeds of $161.9 million during the quarter from a common stock public offering.

“We have a tremendous opportunity to become the standard of care in radiation oncology. During the third quarter we made significant progress building our team and processes to capitalize, and much work lies ahead,” said Scott Drake, President and CEO.

Third Quarter 2018 Results:
Total revenue for the three months, primarily from 3 MRIdian revenue units, was $17.7 million compared to $12.2 million for the same period last year.

Total cost of revenue was $17.3 million compared to $10.2 million for the same period last year.

Total gross profit was $0.4 million compared to $2.0 million for the same period last year.

Total operating expenses were $24.5 million, compared to $13.6 million for the same period last year. Operating expenses in 2018 include $5.0 million in severance expense for certain terminated executives.

Net loss was $(32.9) million, or $(0.39) per share, compared to $(11.2) million, or $($0.19) per share, for the same period last year. The net loss in 2018 includes $5.0 million of severance expense for certain terminated executives and $6.7 million related to a change in fair value of warrant liabilities.

Cash and cash equivalents were $201.5 million as of September 30, 2018, compared to $66.1 million as of June 30, 2018, primarily due to the equity financing in August of 2018.

Nine Month Results Ending September 30, 2018:
Total revenue for the nine months, primarily from 10 MRIdian revenue units, was $60.3 million compared to $14.1 million for the same period last year.

Total cost of revenue was $54.3 million compared to $12.1 million for the same period last year.

Total gross profit was $6.0 million compared to $2.0 million for the same period last year.

Total operating expenses were $59.6 million compared to $37.4 million for the same period last year.

Net loss was $(62.4) million, or $(0.82) per share, compared to $(47.5) million, or $(0.85) per share, for the same period last year.

Financial Guidance:
Due to an installation delay at a customer site, the Company now anticipates 2018 total revenue to be approximately $80 million.

Conference Call and Webcast

ViewRay will hold a conference call on Thursday, November 8, 2018 at 4:30 p.m. ET / 1:30 p.m. PT to discuss the results. The dial-in numbers are (844) 277-1426 for domestic callers and (336) 525-7129 for international callers. The conference ID number is 6190699. 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 14 days following the call. In addition, a telephonic replay of the call will be available until November 15, 2018. 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 6190699.

About ViewRay

ViewRay®, Inc. (Nasdaq: VRAY), designs, manufactures and markets the MRIdian® radiation therapy system. MRIdian is built upon a proprietary high-definition MR imaging system designed from the ground up to address the unique challenges and clinical workflow for advanced radiation oncology. Unlike MR systems used in diagnostic radiology, MRIdian’s high-definition MR was purposely built to deliver high-precision radiation without unnecessary beam distortion, and consequently, help to mitigate skin toxicity and other safety concerns that may otherwise arise when high magnetic fields interact with radiation beams. ViewRay and MRIdian are registered trademarks of ViewRay, Inc.

Forward Looking Statements:

This press release contains forward-looking statements within the meaning of Section 27A of the Private Securities Litigation Reform Act. 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 2018 and ViewRay’s conference call to discuss its third quarter and year to date 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 commercialize MRIdian Linac System, demand for ViewRay’s products, the ability to convert backlog into revenue, and the timing of delivery of ViewRay’s products, the timing, results and other uncertainties associated with clinical trials, 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, 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, 2017 and its 2018 Quarterly Reports on Form 10-Q, as updated periodically with the company’s other filings with the SEC. 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.

 

VIEWRAY, INC.

Condensed Consolidated Statements of Operations and Comprehensive Loss

(In thousands, except share and per share data)

(Unaudited)

Three Months Ended September 30,

Nine Months Ended September 30,

2018

2017

2018

2017

Gross Orders

$

36,209

$

29,850

$

92,017

$

79,460

Backlog

$

200,868

$

194,769

$

200,868

$

194,769

Revenue:

Product

$

16,492

$

11,358

$

57,237

$

11,358

Service

1,056

721

2,706

2,408

Distribution Rights

118

118

356

356

Total revenue

17,666

12,197

60,299

14,122

Cost of revenue:

Product

15,199

9,728

49,564

10,322

Service

2,103

484

4,732

1,758

Total cost of revenue

17,302

10,212

54,296

12,080

Gross margin

364

1,985

6,003

2,042

Operating expenses:

Research and development

4,347

3,616

12,506

9,781

Selling and marketing

3,384

2,510

10,024

5,453

General and administrative

16,721

7,502

37,070

22,116

Total operating expenses

24,452

13,628

59,600

37,350

Loss from operations

(24,088)

(11,643)

(53,597)

(35,308)

Interest income

2

1

6

3

Interest expense

(1,974)

(1,843)

(5,758)

(5,372)

Other (expense) income, net

(6,792)

2,269

(307)

(6,853)

Loss before provision for income taxes

$

(32,852)

$

(11,216)

$

(59,656)

$

(47,530)

Provision for income taxes

Net loss and comprehensive loss

$

(32,852)

$

(11,216)

$

(59,656)

$

(47,530)

Amortization of beneficial conversion feature related to Series A
convertible preferred stock

$

$

$

(2,728)

$

Net loss attributable to common stockholders, basic and diluted

$

(32,852)

$

(11,216)

$

(62,384)

$

(47,530)

Net loss per share, basic and diluted

$

(0.39)

$

(0.19)

$

(0.82)

$

(0.85)

Weighted-average common shares used to compute net loss per

   share attributable to common stockholders, basic and diluted

84,920,996

59,061,149

76,185,346

56,064,562

 

 

VIEWRAY, INC.

Condensed Consolidated Balance Sheets

(In thousands, except share and per share data)

September 30,

2018

December 31,

2017(1)

(Unaudited)

ASSETS

Current assets:

Cash and cash equivalents

$

201,543

$

57,389

Accounts receivable

22,677

20,326

Inventory

40,547

19,375

Deposits on purchased inventory

5,565

7,043

Deferred cost of revenue

10,909

13,696

Prepaid expenses and other current assets

6,174

4,862

Total current assets

287,415

122,691

Property and equipment, net

13,452

11,564

Restricted cash

1,381

1,143

Intangible assets, net

78

Other assets

1,185

235

TOTAL ASSETS

$

303,433

$

135,711

LIABILITIES AND STOCKHOLDERS EQUITY

Current liabilities:

Accounts payable

$

6,964

$

11,014

Accrued liabilities

13,880

7,207

Customer deposits

12,243

17,820

Deferred revenue, current portion

11,315

20,151

Total current liabilities

44,402

56,192

Deferred revenue, net of current portion

5,206

3,238

Long-term debt

44,649

44,504

Warrant liabilities

21,962

22,420

Other long-term liabilities

9,854

7,370

TOTAL LIABILITIES

126,073

133,724

Commitments and contingencies

Stockholders’ equity:

Convertible Preferred stock, par value $0.01 per share; 10,000,000 
     
shares authorized at September 30, 2018 (unaudited) and December 31, 2017; no shares 
     
issued and outstanding at September 30, 2018 (unaudited) and December 31, 2017

Common stock, par value of $0.01 per share; 300,000,000 shares 
     
authorized at September 30, 2018 (unaudited) and December 31, 2017; 95,195,872 and 
     
67,653,974 shares issued and outstanding at September 30, 2018 (unaudited) and 
     
December 31, 2017

941

666

Additional paid-in capital

558,656

321,174

Accumulated deficit

(382,237)

(319,853)

TOTAL STOCKHOLDERS’ EQUITY

177,360

1,987

TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY

$

303,433

$

135,711

(1) The consolidated balance sheet as of December 31, 2017 was derived from audited financial statements as of that date. 

 

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SOURCE ViewRay, Inc.