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Avinger Announces First Quarter 2018 Financial Results
REDWOOD CITY, Calif., May 14, 2018 (GLOBE NEWSWIRE) -- Avinger, Inc. (Nasdaq:AVGR), a leading developer of innovative treatments for peripheral artery disease (PAD), today reported results for the first quarter ended March 31, 2018.
First Quarter and Recent Highlights
- Revenue of $1.8 million for the first quarter of 2018
- Announced treatment of first patients globally with next generation Pantheris Lumivascular atherectomy system
- Added the extended nosecone version of next generation Pantheris and announced successful first-in-patient procedures in Europe
- Next generation Pantheris featured in live case transmissions at Leipzig Interventional Course (LINC) 2018 and Charing Cross International Symposium 2018
- Added 3 new patents to its U.S. intellectual property portfolio – Avinger’s IP portfolio now includes 119 patents and applications
- Converted $41.8 million of debt and fees into equity
- Closed a public offering of Series B preferred stock with gross proceeds of $18 million
- Regained compliance with Nasdaq listing requirements
“We achieved several major successes during the first quarter of 2018. Our next generation Pantheris was approved in Europe late last year and continues to perform favorably. We expect to receive FDA clearance of the next-gen Pantheris this quarter and are eager to roll it out to selected U.S. accounts immediately after approval,” said Jeff Soinski, Avinger’s president and CEO. “We also revamped our capital structure during the first quarter. We converted the large majority of outstanding debt into equity, completed an $18 million financing, and regained Nasdaq compliance. We look forward to completing several additional product development milestones and pursuing a growth strategy during the remainder of 2018.”
First Quarter 2018 Financial Results
Total revenue was $1.8 million for the first quarter ended March 31, 2018, a 48% decrease from the first quarter of 2017 and a 5% decrease from the fourth quarter of 2017. Revenue from disposable devices was $1.5 million for the first quarter of 2018, a 48% decrease compared to the first quarter of 2017 and unchanged from the fourth quarter of 2017. Revenue related to Lightbox imaging consoles was $0.3 million, a 45% decrease compared to the first quarter of 2017 and a 25% decrease from the fourth quarter of 2017. These revenue results reflect the reduced headcount of the Company’s field sales organization and its continuing focus on disposable device utilization in existing accounts.
Gross margin for the first quarter of 2018 was 22%, compared to -17% in the first quarter of 2017 and 9% in the fourth quarter of 2017. The increase in gross margin for the quarter resulted from increased efficiency associated with the Company’s more streamlined operational infrastructure and from a reduction in charges to inventory that negatively impacted gross margin in the first quarter of 2017.
Operating expenses for the first quarter of 2018 were $6.0 million, a 54% decrease compared to $13.2 million in the first quarter of 2017. This decrease was primarily attributable to reduced headcount expenses compared to the first quarter of 2017
Loss from operations for the first quarter of 2018 was $5.6 million, a 59% decrease compared to $13.8 million for the first quarter of 2017, and net loss attributable to common stockholders for the first quarter of 2018 was $10.7 million, compared to $15.3 million for the first quarter of 2017. Net loss per share attributable to common stockholders for the first quarter of 2018 was $5.37, compared to $25.74 for the first quarter of 2017.
Adjusted EBITDA, a non-GAAP measure, was a loss of $4.7 million for the first quarter of 2018, an improvement of 60% compared to a loss of $11.9 million for the first quarter of 2017.
Cash and cash equivalents totaled $14.4 million as of March 31, 2018, compared to $5.4 million as of December 31, 2017.
Currently there are approximately 5.6 million shares of common stock, 41,800 shares of Series A preferred stock and 8,600 shares of Series B preferred stock outstanding. Each share of both series of preferred stock is convertible into 500 shares of the Company’s common stock at a conversion price of $2.00 per share. Assuming conversion of all outstanding shares of preferred stock, the Company would have approximately 30.8 million shares of common stock outstanding.
Avinger will hold a conference call today, May 14, 2018 at 1:30pm PT/4:30pm ET to discuss its first quarter 2018 financial results.
Individuals interested in listening to the conference call may do so by dialing (877) 407-8293 for domestic callers or (201) 689-8349 for international callers. To listen to a live webcast, please visit the investor relations section of Avinger's website at: www.avinger.com.
A replay of the call will be available beginning May 14, 2018 at approximately 7:30pm PT/10:30pm ET through May 28, 2018. To access the replay, dial (877) 660-6853 or (201) 612-7415 and reference Conference ID: 13679774. The webcast will also be available on Avinger's website for six months following the completion of the call.
About Avinger, Inc.
Avinger is a commercial-stage medical device company that designs and develops the first-ever image-guided, catheter-based system that diagnoses and treats patients with peripheral artery disease (PAD). Avinger is dedicated to radically changing the way vascular disease is treated through its Lumivascular platform, which currently consists of the Lightbox imaging console, the Ocelot family of chronic total occlusion (CTO) catheters, and the Pantheris® family of atherectomy devices. Avinger is based in Redwood City, CA. For more information, please visit www.avinger.com.
Public Relations Contact:
VP of Marketing & Business Operations
Chief Business Officer & CFO
|Statements of Operations Data|
|(in thousands, except per share and gross margin data)|
|Three Months Ended|
|Cost of revenues||1,415||4,075|
|Research and development||1,777||3,923|
|Selling, general and administrative||4,260||9,318|
|Total operating expenses||6,037||13,241|
|Loss from operations||(5,643||)||(13,825||)|
|Other income (expense), net||1||3|
|Net loss and comprehensive loss||(10,281||)||(15,340||)|
|Accretion of preferred stock dividends||(410||)||-|
|Net loss applicable to common stockholders||$||(10,691||)||$||(15,340||)|
|Net loss per share attributable to common stockholders, basic and diluted||$||(5.37||)||$||(25.74||)|
|Weighted average common shares used to|
|compute net loss per share, basic and diluted||1,992||596|
|Balance Sheets Data|
|March 31,||December 31,|
|Cash and cash equivalents||$||14,418||$||5,389|
|Accounts receivable, net||1,354||1,127|
|Prepaid expenses and other current assets||1,163||640|
|Total current assets||20,942||11,451|
|Property and equipment, net||2,431||2,950|
|Liabilities and stockholders’ equity (deficit)|
|Accrued expenses and other current liabilities||907||3,597|
|Borrowings, current portion||7,521||44,744|
|Preferred stock dividends payable||410||-|
|Total current liabilities||11,953||50,477|
|Other long-term liablities||111||301|
|Stockholders’ equity (deficit):|
|Additional paid-in capital||323,504||265,636|
|Total stockholders’ equity (deficit)||11,899||(35,690||)|
|Total liabilities and stockholders’ equity (deficit)||$||23,963||$||15,088|
|Three Months Ended|
|Loss from operations||$||(5,643||)||$||(13,825||)|
|Add: Stock-based compensation||619||1,542|
|Add: Depreciation and amortization||277||428|