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Brainsway Reports Financial Results for Third Quarter of 2018 and Provides Corporate Update
Third quarter revenues of $4.3 million represent quarterly record and 42% increase over third quarter 2017
Recently commenced installing Deep TMS system for treatment of OCD at U.S. Sites
HACKENSACK, N.J., Nov. 13, 2018 (GLOBE NEWSWIRE) -- Brainsway Ltd. (TASE: BRIN), a leader in the advanced non-invasive treatment of brain disorders, today announced the Company’s financial results for the three months ended September 30, 2018, and provided a corporate update.
Third Quarter 2018 Financial Highlights
- Third quarter revenue was a quarterly record of $4.3 million, up 42% over the $3.0 million of total revenues in the third quarter of 2017 and 15% over total revenues in the second quarter of 2018
- Recurring leasing revenues of $2.5 million, an increase of 43% over the third quarter of 2017
- Sales revenues of $1.8 million, an increase of 42% over the third quarter of 2017
- Newly signed contracts in the third quarter representing future projected revenues of $4.3 million increased Brainsway’s backlog at September 30, 2018, to $33.7 million in total committed projected revenues from current leasing customers, not including additional potential usage fees
- Gross margin for the third quarter of 2018 was 78%
- 26% reduction in operating loss to $0.9 million in the third quarter of 2018, as compared to an operating loss of $1.3 million in the third quarter of 2017
“Our top-line growth, driven by the leasing, direct sales and use of our Deep Transcranial Magnetic Stimulation system (Deep TMS), continues to be strong,” said Yaacov Michlin, Chief Executive Officer of Brainsway. “Our record third quarter revenues grew more than 40% over the third quarter of 2017, with strong demand from new customers. Additionally, our backlog of committed projected revenues grew to $33.7 million at the end of the third quarter of 2018, providing greater visibility of our future continuous growth of revenues.”
“Following receipt in the third quarter of De Novo clearance from the U.S. Food & Drug Administration (FDA) for our Deep TMS system for the treatment of obsessive-compulsive disorder (OCD) in adults, we commenced initial U.S. installations of our OCD device at dozens of leading sites. We are extremely pleased with the initial demand for the Deep TMS system for OCD, and continue to view this indication as a substantial market opportunity and growth engine for Brainsway.”
- Received FDA clearance for Deep TMS system for the treatment of OCD
- Commenced initial U.S. installations of Deep TMS system for the treatment of OCD
- Showcased Deep TMS system for the treatment of OCD during the Innovation Showcase at the 2018 Psych Congress in Orlando, FL
- Continued patient recruitment into multi-center smoking cessation and post-traumatic stress disorder clinical trials for Deep TMS; completion of recruitment in smoking cessation study expected shortly
At September 30, 2018, the Company had cash, cash equivalents and short-term deposits of $10.5 million, as compared to cash, cash equivalents and short-term deposits of $14.6 million as of December 31, 2017.
Brainsway is engaged in the research, development and sales and marketing of a medical system for non-invasive treatment of common brain disorders. The medical system developed and manufactured by the company is based on a unique breakthrough technology called Deep TMS, which can reach significant depth and breadth of the brain and produce broad stimulation and functional modulation of targeted brain areas. In the U.S., the Company’s device has been FDA cleared for the treatment of major depressive disorder (MDD) since 2013, and is now FDA cleared (De-Novo) for the treatment of Obsessive Compulsive Disorder (OCD). The Company's systems have also received CE clearance and are sold worldwide for the treatment of various brain disorders.
Forward Looking Statements
This press release contains forward-looking statements about the Company’s expectations, beliefs an intentions. These forward-looking statements and their implications are based on the current expectations of the management of the Company only, and are subject to a number of factors and uncertainties that could cause actual results to differ materially from those described in the forward-looking statements. In addition, historical results or conclusions from scientific research and clinical studies do not guarantee that future results would suggest similar conclusions or that historical results referred to herein would be interpreted similarly in light of additional research or otherwise. The following factors, among others, could cause actual results to differ materially from those described in the forward-looking statements: changes in technology and market requirements; we may encounter delays or obstacles in launching and/or successfully completing our device studies; our products may not be approved by regulatory agencies: we may be unable to retain or attract key employees whose knowledge is essential to the development of our products; unforeseen scientific difficulties may develop with our process; our products may wind up being more expensive than we anticipate; our patents may not be sufficient; our products may harm recipients; changes in legislation; inability to timely develop and introduce new technologies, products and applications, which could cause the actual results or performance of the Company to differ materially from those contemplated in such forward-looking statements.
Any forward-looking statement in this press release speaks only as of the date of this press release. The Company undertakes no obligation to publicly update or review any forward-looking statement, whether as a result of new information, future developments or otherwise, except as may be required by any applicable securities laws. More detailed information about the risks and uncertainties affecting the Company is contained under the heading “Risk Factors” in Brainsway Ltd.'s periodic filings with the Tel-Aviv Stock Exchange.
Chief Financial Officer
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