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ViewRay Reports Fourth Quarter and Full Year 2018 Results

CLEVELAND, March 14, 2019 /PRNewswire/ -- ViewRay, Inc. (Nasdaq: VRAY) today announced financial results for the fourth quarter and full year ended December 31, 2018.

Full Year 2018 Highlights:

  • Total revenue of $81.0 million, primarily from 13 revenue units and 2 system upgrades, compared to 2017 revenue of approximately $34.0 million, primarily from 6 revenue units.
  • Received 23 new orders for MRIdian systems totaling $140.7 million, up from 19 new orders totaling $113.6 million in 2017.
  • Total backlog increased to $212.3 million as of December 31, 2018, up from $203.6 million as of December 31, 2017.
  • Cash and cash equivalents were $167.4 million as of December 31, 2018.

Fourth Quarter 2018 Highlights:

  • Total revenue of $20.7 million, primarily from 3 revenue units and 1 system upgrade in the fourth quarter of 2018, compared to fourth quarter 2017 revenue of $19.9 million, primarily from 4 revenue units.
  • Received 8 new orders for MRIdian systems totaling $48.7 million in the fourth quarter of 2018, compared to 6 new orders totaling $34.1 million in the fourth quarter of 2017.

"We are focused on becoming the standard of care in radiation oncology," said Scott Drake, President and CEO.  "We have made significant progress on our commercial, innovation and clinical pipelines.  In 2019, we are well positioned to drive further growth, therapy adoption and extend our innovation lead."

Financial Results
Total revenue for the fiscal quarter ended December 31, 2018 was $20.7 million, compared to $19.9 million for the same period last year.  Total revenue for the full year 2018 was $81.0 million, compared to $34.0 million for the full year 2017.

Total cost of revenue for the fiscal quarter ended December 31, 2018 was $20.1 million, compared to $15.6 million for the same period last year.  Total cost of revenue was $74.4 million for the full year 2018 compared to $27.7 million for the full year 2017.

Total gross profit for the fiscal quarter ended December 31, 2018 was $0.6 million, compared to $4.3 million for the same period last year.  Total gross profit for the full year 2018 was $6.6 million, compared to $6.3 million for the full year 2017.

Total operating expenses for the fiscal quarter ended December 31, 2018 were $22.1 million, compared to $17.1 million for the same period last year. Total operating expenses for the full year 2018 were $81.7 million, compared to $54.5 million for the full year 2017.

Net loss for the fiscal quarter ended December 31, 2018 was $16.7 million, or $0.17 per share, compared to $24.6 million, or $0.38 per share, for the same period last year.  Net loss for the full year 2018 was $79.1 million, or $0.98 per share, compared to $72.2 million, or $1.23 per share, for the full year 2017.

ViewRay had total cash and cash equivalents of $167.4 million at December 31, 2018.

Financial Guidance
For the full year 2019, ViewRay anticipates total revenue to be in the range of $111 - $124 million, and total cash usage to be in the range of $65 - $75 million.

Conference Call and Webcast

ViewRay will hold a conference call to discuss results on Thursday March 14, 2019 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 7659688. 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 March 21, 2019. 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 7659688.

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 2019 and ViewRay's conference call to discuss its fourth 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, 2018, 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 December 31,



Year Ended December 31,




2018



2017



2018



2017


Gross Orders


$

48,700



$

34,125



$

140,717



$

113,585


Backlog


$

212,311



$

203,625



$

212,311



$

203,625



















Revenue:

















Product


$

19,389



$

19,100



$

76,626



$

30,458


Service



1,155




701




3,861




3,109


Distribution Rights



119




119




475




475


Total revenue



20,663




19,920




80,962




34,042


Cost of revenue:

















Product



16,958




15,166




66,522




25,488


Service



3,105




464




7,837




2,222


Total cost of revenue



20,063




15,630




74,359




27,710


Gross margin



600




4,290




6,603




6,332


Operating expenses:

















Research and development



4,014




4,928




16,520




14,709


Selling and marketing



5,038




2,959




15,062




8,412


General and administrative



13,043




9,259




50,113




31,375


Total operating expenses



22,095




17,146




81,695




54,496


Loss from operations



(21,495)




(12,856)




(75,092)




(48,164)


Interest income



2




2




8




5


Interest expense



(1,943)




(1,875)




(7,701)




(7,247)


Other income (expense), net



6,696




(9,917)




6,389




(16,770)


Loss before provision for income taxes


$

(16,740)



$

(24,646)



$

(76,396)



$

(72,176)


Provision for income taxes



-




-




-




-


Net loss and comprehensive loss


$

(16,740)



$

(24,646)



$

(76,396)



$

(72,176)


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


$

-



$

-




(2,728)



$

-


Net loss attributable to common stockholders, basic and diluted


$

(16,740)



$

(24,646)



$

(79,124)



$

(72,176)


Net loss per share, basic and diluted


$

(0.17)



$

(0.38)



$

(0.98)



$

(1.23)


Weighted-average common shares used to compute net loss per

   share attributable to common stockholders, basic and diluted



95,822,255




65,559,744




81,123,140




58,457,868


 

 

VIEWRAY, INC.

Consolidated Balance Sheets

(Unaudited)

(In thousands, except share and per share data)




December 31,

2018



December 31,

2017











ASSETS









Current assets:









Cash and cash equivalents


$

167,432



$

57,389


Accounts receivable



36,867




20,326


Inventory



49,462




19,375


Deposits on purchased inventory



8,142




7,043


Deferred cost of revenue



9,736




13,696


Prepaid expenses and other current assets



6,045




4,862


Total current assets



277,684




122,691


Property and equipment, net



13,958




11,564


Restricted cash



1,933




1,143


Intangible assets, net



-




78


Other assets



1,395




235


TOTAL ASSETS


$

294,970



$

135,711


LIABILITIES AND STOCKHOLDERS' EQUITY









Current liabilities:









Accounts payable


$

10,207



$

11,014


Accrued liabilities



9,983




7,207


Customer deposits



19,968




17,820


Deferred revenue, current portion



13,731




20,151


Total current liabilities



53,889




56,192


Deferred revenue, net of current portion



5,744




3,238


Long-term debt



55,364




44,504


Warrant liabilities



11,844




22,420


Other long-term liabilities



820




7,370


TOTAL LIABILITIES



127,661




133,724


Commitments and contingencies









Stockholders' equity:









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







Common stock, par value of $0.01 per share; 300,000,000 shares
   authorized at December 31, 2018 and 2017; 96,332,023 and 67,653,974
   shares issued and outstanding at December 31, 2018 and 2017



952




666


Additional paid-in capital



565,334




321,174


Accumulated deficit



(398,977)




(319,853)


TOTAL STOCKHOLDERS' EQUITY



167,309




1,987


TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY


$

294,970



$

135,711


 

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SOURCE ViewRay, Inc.