CLEVELAND, July 30, 2020 /PRNewswire/ — ViewRay, Inc. (Nasdaq: VRAY) today announced financial results for the second quarter ended June 30, 2020.

Second Quarter 2020 Highlights:

  • Total revenue of $14.2 million, primarily from two revenue units, compared to $30.2 million, primarily from five revenue units, in the second quarter of 2019.
  • Received four new orders for MRIdian systems totaling $24.6 million, compared to three new orders totaling $18.1 million in the second quarter of 2019.
  • Total backlog was $232.2 million as of June 30, 2020, compared to $219.3 million as of June 30, 2019.
  • Cash and cash equivalents were $179.5 million as of June 30, 2020.
  • Announced workforce reductions of approximately 20% as well as a program designed to temporarily retain select senior leaders, including Shar Matin, while also providing an option for them to continue with the Company if certain business and financial targets are achieved.

«We received four orders for MRIdian and used $10.7 million of cash in the second quarter. We are pleased with these results, the level of customer engagement in light of the challenging environment, and the significant progress to elongate our cash runway,» said Scott Drake, President and CEO. «In alignment with our plan, we recently reduced our workforce by approximately 20%. We believe these are difficult but necessary decisions while our customers recover financially. We expect that the market and our business will recover and advance to its next phase of growth; however, it is difficult to predict the timeline. Importantly, we are prioritizing and budgeting increased investment in our clinical and innovation pipeline. We are excited about the advancements that lie ahead.»

Three Months Ended June 30, 2020 Financial Results:

Total revenue for the three months ended June 30, 2020 was $14.2 million compared to $30.2 million for the same period last year.

Total cost of revenue for the three months ended June 30, 2020 was $15.3 million compared to $26.9 million for the same period last year. 

Total gross profit (loss) for the three months ended June 30, 2020 was $(1.0) million, compared to $3.2 million for the same period last year.

Total operating expenses for the three months ended June 30, 2020 were $24.5 million, compared to $29.5 million for the same period last year.

Net loss for the three months ended June 30, 2020 was $26.2 million, or $0.18 per share, compared to $30.8 million, or $0.32 per share, for the same period last year.

ViewRay had total cash and cash equivalents of $179.5 million at June 30, 2020.

Six Months Ended June 30, 2020 Financial Results:

Total revenue for the six months ended June 30, 2020 was $28.5 million compared to $50.5 million for the same period last year.

Total cost of revenue for the six months ended June 30, 2020 was $31.6 million compared to $52.6 million for the same period last year. 

Total gross profit (loss) for the six months ended June 30, 2020 was $(3.1) million, compared to $(2.1) million for the same period last year.

Total operating expenses for the six months ended June 30, 2020 were $52.5 million, compared to $54.5 million for the same period last year.

Net loss for the six months ended June 30, 2020 was $53.7 million, or $0.36 per share, compared to $64.2 million, or $0.66 per share, for the same period last year.

Conference Call and Webcast

ViewRay will hold a conference call to discuss results on Thursday, July 30, 2020 at 4:30 p.m. ET / 1:30 p.m. PT. The dial-in numbers are (844) 277-1426 for domestic callers and (336) 525-7129 for international callers. The conference ID number is 4968496. A live webcast of the conference call will be available on the investor relations page of ViewRay’s corporate website at www.investors.viewray.com.

After the live webcast, a replay will remain available online on the investor relations page of ViewRay’s corporate website, www.investors.viewray.com, for 14 days following the call. In addition, a telephonic replay of the call will be available until August 6, 2020. 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 4968496.

About ViewRay®

ViewRay, Inc. (Nasdaq: VRAY), designs, manufactures, and markets the MRIdian® MR-Guided 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 purpose-built to address specific challenges, including beam distortion, skin toxicity, and other concerns that potentially may 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 preliminary second quarter results and anticipated future operating and financial performance, and ViewRay’s conference call to discuss its second quarter 2020 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, the timing of delivery of ViewRay’s products, the timing, length, and severity of the recent COVID-19 (coronavirus) pandemic, including its impacts across our businesses on demand, operations and our global supply chains, the 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, 2019 and its 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.

Consolidated Statements of Operations and Comprehensive Loss

(Unaudited)

(In thousands, except share and per share data)

Three Months Ended June 30,

Six Months Ended June 30,

2020

2019

2020

2019

Revenue:

Product

$

10,615

$

27,905

$

22,085

$

46,779

Service

3,490

2,143

6,151

3,434

Distribution rights

119

119

238

238

Total revenue

14,224

30,167

28,474

50,451

Cost of revenue:

Product

12,714

22,814

25,843

44,847

Service

2,552

4,107

5,780

7,722

Total cost of revenue

15,266

26,921

31,623

52,569

Gross margin

(1,042)

3,246

(3,149)

(2,118)

Operating expenses:

Research and development

6,211

6,463

12,548

11,494

Selling and marketing

3,093

7,663

8,916

12,548

General and administrative

15,227

15,398

31,015

30,507

Total operating expenses

24,531

29,524

52,479

54,549

Loss from operations

(25,573)

(26,278)

(55,628)

(56,667)

Interest income

87

687

782

907

Interest expense

(1,071)

(1,074)

(2,109)

(1,833)

Other income (expense), net

405

(4,133)

3,271

(6,566)

Loss before provision for income taxes

$

(26,152)

$

(30,798)

$

(53,684)

$

(64,159)

Provision for income taxes

Net loss and comprehensive loss

$

(26,152)

$

(30,798)

$

(53,684)

$

(64,159)

Net loss per share, basic and diluted

$

(0.18)

$

(0.32)

$

(0.36)

$

(0.66)

Weighted-average common shares used to compute net loss per

   share attributable to common stockholders, basic and diluted

147,563,278

97,572,389

147,506,244

97,129,389

 


VIEWRAY, INC.

Consolidated Balance Sheets

(Unaudited)

(In thousands, except share and per share data)

June 30, 2020

December 31, 2019

ASSETS

Current assets:

Cash and cash equivalents

$

179,514

$

226,783

Accounts receivable

22,089

16,817

Inventory

48,197

55,031

Deposits on purchased inventory

4,643

6,457

Deferred cost of revenue

6,273

3,466

Prepaid expenses and other current assets

5,568

3,310

Total current assets

266,284

311,864

Property and equipment, net

22,718

23,399

Restricted cash

1,860

1,404

Intangible assets, net

53

55

Right-of-use assets

10,621

11,720

Other assets

1,642

1,577

TOTAL ASSETS

$

303,178

$

350,019

LIABILITIES AND STOCKHOLDERS EQUITY

Current liabilities:

Accounts payable

$

4,852

$

13,739

Accrued liabilities

17,361

21,390

Customer deposits

16,047

9,662

Operating lease liability, current

2,347

2,264

Current portion of long-term debt

10,889

1,556

Deferred revenue, current

16,788

10,457

Total current liabilities

68,284

59,068

Deferred revenue, net of current portion

3,069

3,553

Long-term debt

44,756

53,995

Warrant liabilities

2,072

5,373

Operating lease liability, noncurrent

9,293

10,479

Other long-term liabilities

1,680

1,377

TOTAL LIABILITIES

129,154

133,845

Commitments and contingencies (Note 6)

Stockholders’ equity:

Preferred stock, par value of $0.01 per share; 10,000,000 shares authorized
   at June 30, 2020 and December 31, 2019; no shares issued and outstanding
   at June 30, 2020 and December 31, 2019

Common stock, par value of $0.01 per share; 300,000,000 shares authorized at
   June 30, 2020 and December 31, 2019; 147,616,373 and 147,191,695 shares
   issued and outstanding at June 30, 2020 and December 31, 2019

1,466

1,462

Additional paid-in capital

745,418

733,888

Accumulated deficit

(572,860)

(519,176)

TOTAL STOCKHOLDERS’ EQUITY

174,024

216,174

TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY

$

303,178

$

350,019

 

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SOURCE ViewRay, Inc.