Click here to close now.

SYS-CON MEDIA Authors: David Sprott, Liz McMillan, tru welu, Blue Box Blog, Kevin Jackson

News Feed Item

Mazor Robotics Announces First Quarter 2014 Financial Results

Mazor Robotics Ltd. (TASE:MZOR; NASDAQGM:MZOR), a developer of innovative guidance systems and complementary products, announced today its financial results for the first quarter ended March 31, 2014.

“Our efforts in the 2014 first quarter yielded a number of positive results. We penetrated two teaching centers which enhanced the awareness of the Renaissance system within the broader academic community. With a total of four systems in hospitals in the state, we believe that Georgia is emerging as a new cluster and will one day complement our success in Florida, Texas and southern California,” commented Ori Hadomi, Mazor's Chief Executive Officer. “To build momentum and achieve similar success throughout the year, we will continue to invest our resources to maintain our competitive advantage and build greater awareness among surgeons and hospital administrators. With 34 sites in the United States using Renaissance, we have only penetrated less than 2% of the market so with the increasing level of interest and the focused efforts of our experienced sales and marketing team, I expect to be able to convert these opportunities into sales and clinical success throughout the year.”

FIRST QUARTER 2014 FINANCIAL RESULTS ON IFRS BASIS ("GAAP")

Revenue for the three months ended March 31, 2014 was $4.9 million, flat with the year-ago first quarter. U.S.-generated revenue was $3.6 million compared to $4.1 million in the year-ago quarter, primarily due to lower system sales. International non-U.S. revenue grew to $1.3 million compared to $0.8 million reported in the first quarter of 2013, reflecting two system sales in the first quarter of 2014 compared to one system sale in the 2013 first quarter. Revenue from system kit sales, services and other increased to $2.0 million in the first quarter of 2014, representing a 67% increase compared to $1.2 million in the first quarter of 2013.

Gross margin for three months ended March 31, 2014 was 79%, compared to 81% in the year-ago quarter.

Total operating expenses in the first quarter of 2014 were $7.5 million, compared to $4.6 million in the first quarter of 2013, reflecting the Company’s increased investments in sales, marketing, research and development resources. Operating loss for the first quarter of 2014 was $3.6 million, compared to an operating loss of $0.7 million in the first quarter of 2013. Net loss for the first quarter of 2014 was $3.6 million, or $0.09 per share, compared to a net loss of $10.6 million, or $0.36 per share in the first quarter of 2013.

Cash used in operating activities in the first quarter of 2014 was $5.3 million, compared to $1.6 million in the first quarter of 2013. As of March 31, 2014, cash, cash equivalents and marketable securities totaled $61 million.

FIRST QUARTER 2014 FINANCIAL RESULTS ON NON-GAAP BASIS

The tables below include a reconciliation of the Company’s GAAP results to non-GAAP results. The reconciliation primarily relates to non-cash expense in the amount of $0.4 million with respect to share-based compensation and intangible asset amortization in the first quarter of 2014. On a non-GAAP-basis, the net loss in the first quarter of 2014 was $3.2 million, or $0.08 per share, compared to $0.4 million, or $0.01 per share in the first quarter of 2013.

CONFERENCE CALL INFORMATION

The Company will host a conference call to discuss these results on Wednesday, May 7, 2014, at 8:30 AM ET (3:30 PM IST). Investors within the United States interested in participating are invited to call 888-549-7750 and reference the Conference ID: 4681223. Participants in Israel can use the toll free dial-in number 1-809-21-4368 and reference the same Conference ID number. All other international participants can use the dial-in number 1-480-629-9770, using the same Conference ID.

A replay of the event will be available for two weeks following the conclusion of the call. To access the replay, callers in the United States can call 1-800-406-7325 and reference the Replay Access Code: 4681223. All international callers can dial 1-30-590-3030, using the same Replay Access Code. To access the webcast, please visit www.mazorrobotics.com, click ‘Investors.’

Use of Non-GAAP Measures

In addition to disclosing financial results calculated in accordance with generally accepted accounting principles in conformity with International Financial Reporting Standards (GAAP), this press release contains non-GAAP financial measures for gross profit, operating expenses, operating loss, financing income, net income and basic and diluted earnings per share that exclude the effects of non-cash expense of amortization of intangible assets, stock-based compensation and revaluation of the fair value of the derivative instruments. Management believes that these non-GAAP financial measures provide meaningful supplemental information regarding the Company’s performance that enhances management's and investors' ability to evaluate the Company's net income and earnings per share and to compare them to historical net income and earnings per share.

The presentation of this non-GAAP financial information is not intended to be considered in isolation or as a substitute for the financial information prepared and presented in accordance with GAAP. Management uses both GAAP and non-GAAP measures when operating and evaluating the Company’s business internally and therefore decided to make these non-GAAP adjustments available to investors.

About Mazor

Mazor Robotics is dedicated to the development and marketing of innovative surgical guidance systems and complementary products that provide a safer surgical environment for patients, surgeons, and operating room staff. Mazor Robotics’ flagship product, Renaissance®, is a state-of-the-art surgical guidance system that enables surgeons to conduct spine surgeries in an accurate and secure manner. Mazor Robotics systems have been successfully used in the placement of over 45,000 implants worldwide. Numerous peer-reviewed publications and presentations at leading scientific conferences have validated the accuracy, usability, and clinical advantages of Mazor Robotics technology. For more information, the content of which is not part of this press release, please visit www.mazorrobotics.com.

Forward-Looking Statements

This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 and other securities laws. Any statements in this release about future expectations, plans or prospects for the Company, including without limitation, statements regarding Mazor’s expected sales and clinical success throughout 2014, expected sales in Georgia, expected maintenance of competitive advantage and building greater awareness of the Renaissance system, increase in investments in sales, marketing, research and development, expected increase in interest in the Renaissance system, and other statements containing the words “believes,” “anticipates,” “plans,” “expects,” “will” and similar expressions are forward-looking statements. These statements are only predictions based on Mazor's current expectations and projections about future events. There are important factors that could cause Mazor's actual results, level of activity, performance or achievements to differ materially from the results, level of activity, performance or achievements expressed or implied by the forward-looking statements. Those factors include, but are not limited to, the impact of general economic conditions, competitive products, product demand and market acceptance risks, reliance on key strategic alliances, fluctuations in operating results, and other factors indicated in Mazor's filings with the Securities and Exchange Commission (SEC) including those discussed under the heading "Risk Factors" in Mazor’s annual report on Form 20-F filed with the SEC on April 9, 2014 and in subsequent filings with the SEC. For more details, refer to Mazor's SEC filings. Mazor undertakes no obligation to update forward-looking statements to reflect subsequent occurring events or circumstances, or to changes in our expectations, except as may be required by law.

 
Mazor Robotics Ltd.

CONSOLIDATED STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME

(in thousands, except per share data)
         
 

Three-month period

ended March 31,

2014   2013  
(Unaudited)   (Unaudited)  
Revenue $ 4,878 $ 4,906
 
Cost of revenue $ 1,031 $ 950
 
Gross profit $ 3,847 $ 3,956
 
Operating costs and expenses:
Research and development $ 1,644 $ 928
Selling and marketing $ 4,911 $ 3,109
General and administrative $ 910 $ 575
Total operating costs and expenses $ 7,465 $ 4,612
 
Loss from operations $ (3,618

)

 

$ (656 )
 
Financing income (expenses), net $ 24 $ (9,898 )
 
Loss before taxes on income $ (3,594

)

 

$ (10,554

)

 

 
Taxes on income $ 40 $ 38
           
 
Net loss attributable to ordinary shareholders $ (3,634

)

 

$ (10,592 )
 

Net loss per share – Basic and diluted attributable to ordinary shareholders

$ (0.09 ) $ (0.36 )
 
 
Weighted average common shares outstanding – 41,120 29,241
Basic and diluted            
 
Mazor Robotics Ltd.
Consolidated Statements of Financial Position as of
(U.S. Dollars in thousands)

 

       
 
March 31, December 31,
2014 2013
Unaudited Audited
Balance Sheet Data:    
Current Assets
Cash and cash equivalents $ 14,325 $ 19,803
Short-term investments $ 46,735 $ 45,014
Trade receivables $ 3,301 $ 1,974
Other accounts receivable $ 988 $ 655
Inventory $ 2,714 $ 2,480
Total Current Assets $ 68,063 $ 69,926
 
Non-Current Assets
Prepaid lease fees

$

83 $ 78
Property and equipment, net $ 828 $ 792
Intangible assets, net $ 19 $ 93
Total Non-Current Assets $ 930 $ 963
Total assets $ 68,993 $ 70,889
 
Current liabilities
Trade payables $ 1,561 $ 1,899
Other accounts payable $ 3,879 $ 4,565
Total current liabilities $ 5,440 $ 6,464
 
Non-Current Liabilities
Employee benefits $ 336 $ 311
Deferred tax liability $ 21 $ 21
Total Non-Current liabilities $ 357 $ 332
Total liabilities $ 5,797 $ 6,796
 
Equity
Share capital $ 109 $ 106
Share premium $ 134,212 $ 130,472
Amounts allocated to share options $ 77 $ 77
Capital reserve for share-based payment transactions $ 2,848 $ 3,854
Foreign currency translation reserve $ 2,119 $ 2,119
Accumulated loss $ (76,169) $ (72,535)
Total equity $ 63,196 $ 64,093
 
Total liabilities and equity $ 68,993 $ 70,889
 
Mazor Robotics Ltd.
     

Reconciliations of GAAP to Non-GAAP Financial Measures

(U.S. Dollars in thousands, except per share data)

(UNAUDITED)
 

 

Three-month period

ended March 31,

2014       2013
GAAP gross profit $   3,847 $   3,956
Amortization of intangible assets $ 73 $ 73
Stock-based compensation $ 7 $ 2
Non-GAAP gross profit $ 3,927 $ 4,031
GAAP gross profit as percentage of revenues

79%

 

81%

 

Non-GAAP gross profit as percentage of revenues

80%

 

82%

 

 
GAAP operating expenses $ 7,465 $ 4,612
Stock-based compensation:
Research and development $ 38 $ 27
Selling and Marketing $ 200 $ 69
General and administrative $ 108 $ 82
Non-GAAP operating expenses $ 7,119 $ 4,434
 
GAAP operating loss $ (3,618 ) $ (656 )
 
Non-GAAP operating loss $ (3,192 ) $ (403 )
 
GAAP Financing income (expenses), net $ 24 $ (9,898 )
Change in fair value of derivative instruments $ - $ 9,907
Non-GAAP Financing income (expenses), net $ 24 $ 9
 
GAAP net loss $ (3,634 ) $ (10,592 )
Stock-based compensation $ 353 $ 180
Amortization of intangible assets $ 73 $ 73
Change in fair value of derivative instruments $ - $ 9,907
Non-GAAP net loss $ (3,208 ) $ (432 )
 
GAAP basic and diluted loss per share $ (0.09 ) $ (0.36 )
 
Non-GAAP basic and diluted loss per share $ (0.08 ) $ (0.01 )
 
Mazor Robotics Ltd.
CONSOLIDATED CASH FLOW STATEMENTS
(U.S. Dollars in thousands)
     
 
Three-month period

ended March 31,

2014     2013
(Unaudited) (Unaudited)
Cash flows from operating activities:  
Loss for the period $ (3,634) $ (10,592)
 
Adjustments:
Depreciation and amortization $ 161 $ 146
Change in fair value of derivative liability
on account of warrants - $ 9,907
Financing expenses, net $ 72 $ (47)
Share-based payment $ 353 $ 180
Taxes on income $ 40 $ 38
$ 626 $ 10,224
 
Change in inventory $ (234) $ 13
Change in trade and other accounts receivable $ (1,663) $ (2,203)
Change in prepaid lease fees $ (5) $ (5)
Change in trade and other accounts payable $ (446) $ 794
Change in employee benefits $ 25 $ 105
$ (2,323) $ (1,296)
 
Interest received $ 2 $ 58
Income tax paid $ (11) $ (35)
$ (9) $ 23
 
Net cash used in operating activities $ (5,340) $ (1,641)
 
Cash flows from investing activities:
Proceeds from short-term investments and deposits, net $ (1,752) $ 2,831
Purchase of property and equipment $ (124) $ (83 )
Net cash provided by (used in) investing activities $ (1,876) $ 2,748
 
Cash flows used in financing activities:
Issuance expenses $ (294) $ (160)
Proceeds from exercise of share options by employees $ 2,384 $ 16
Repayment of loans to the OCS $ (324) $ -
Net cash provided by (used in) financing activities $ 1,766 $ (144)
 
Net increase (decrease) in cash and cash equivalents $ (5,450) $ 963
Cash and cash equivalents at the beginning of the period $ 19,803 $ 12,797
 

Effect of exchange rate differences on balances of cash and cash equivalents

$ (28) $ (16)
Cash and cash equivalents at the end of the period $ 14,325 $ 13,744

More Stories By Business Wire

Copyright © 2009 Business Wire. All rights reserved. Republication or redistribution of Business Wire content is expressly prohibited without the prior written consent of Business Wire. Business Wire shall not be liable for any errors or delays in the content, or for any actions taken in reliance thereon.

Latest Stories
Container technology is sending shock waves through the world of cloud computing. Heralded as the 'next big thing,' containers provide software owners a consistent way to package their software and dependencies while infrastructure operators benefit from a standard way to deploy and run them. Containers present new challenges for tracking usage due to their dynamic nature. They can also be deployed to bare metal, virtual machines and various cloud platforms. How do software owners track the usag...
If cloud computing benefits are so clear, why have so few enterprises migrated their mission-critical apps? The answer is often inertia and FUD. No one ever got fired for not moving to the cloud - not yet. In his session at 15th Cloud Expo, Michael Hoch, SVP, Cloud Advisory Service at Virtustream, discussed the six key steps to justify and execute your MCA cloud migration.
SYS-CON Events announced today that BMC will exhibit at SYS-CON's 16th International Cloud Expo®, which will take place on June 9-11, 2015, at the Javits Center in New York City, NY. BMC delivers software solutions that help IT transform digital enterprises for the ultimate competitive business advantage. BMC has worked with thousands of leading companies to create and deliver powerful IT management services. From mainframe to cloud to mobile, BMC pairs high-speed digital innovation with robust...
Containers Expo Blog covers the world of containers, as this lightweight alternative to virtual machines enables developers to work with identical dev environments and stacks. Containers Expo Blog offers top articles, news stories, and blog posts from the world's well-known experts and guarantees better exposure for its authors than any other publication. Bookmark Containers Expo Blog ▸ Here Follow new article posts on Twitter at @ContainersExpo
Compute virtualization has been transformational, yet security policy implementation and enforcement has lagged behind in agility and automation. There are a number of key considerations when implementing policy in private and hybrid clouds. In his session at 15th Cloud Expo, Malcolm Rieke, the Director of Product Management at Catbird, discussed the impact of this new paradigm and what organizations can do today to safely move to software-defined network and compute architectures, including: ...
We’re entering a new era of computing technology that many are calling the Internet of Things (IoT). Machine to machine, machine to infrastructure, machine to environment, the Internet of Everything, the Internet of Intelligent Things, intelligent systems – call it what you want, but it’s happening, and its potential is huge. IoT is comprised of smart machines interacting and communicating with other machines, objects, environments and infrastructures. As a result, huge volumes of data are bein...
Can the spatial component of your Big Data be harnessed and visualized, adding another dimension of power and analytics to your data? In his session at Big Data Expo®, John Meza, Product Engineer and Performance Engineering Team Lead at Esri, discussed the spatial queries that can be used within the Hadoop ecosystem and their integration with GeoSpatial applications. The GIS Tools for Hadoop project was also discussed and its implementation to discover location-based patterns and relationships...
Cloud and Big Data present unique dilemmas: embracing the benefits of these new technologies while maintaining the security of your organization's assets. When an outside party owns, controls and manages your infrastructure and computational resources, how can you be assured that sensitive data remains private and secure? How do you best protect data in mixed use cloud and big data infrastructure sets? Can you still satisfy the full range of reporting, compliance and regulatory requirements? In...
In this scenarios approach Joe Thykattil, Technology Architect & Sales at TimeWarner / Navisite, presented examples that will allow business-savvy professionals to make informed decisions based on a sound business model. This model covered the technology options in detail as well as a financial analysis. The TCO (Total Cost of Ownership) and ROI (Return on Investment) demonstrated how to start, develop and formulate a business case that will allow both small and large scale projects to achieve...
The move to the cloud brings a number of new security challenges, but the application remains your last line of defense. In his session at 15th Cloud Expo, Arthur Hicken, Evangelist at Parasoft, discussed how developers are extremely well-poised to perform tasks critical for securing the application – provided that certain key obstacles are overcome. Arthur Hicken has been involved in automating various practices at Parasoft for almost 20 years. He has worked on projects including database dev...
Building low-cost wearable devices can enhance the quality of our lives. In his session at Internet of @ThingsExpo, Sai Yamanoor, Embedded Software Engineer at Altschool, provided an example of putting together a small keychain within a $50 budget that educates the user about the air quality in their surroundings. He also provided examples such as building a wearable device that provides transit or recreational information. He then reviewed the resources available to build wearable devices at ...
There has been a lot of discussion recently in the DevOps space over whether there is a unique form of DevOps for large enterprises or is it just vendors looking to sell services and tools. In his session at DevOps Summit, Chris Riley, a technologist, discussed whether Enterprise DevOps is a unique species or not. What makes DevOps adoption in the enterprise unique or what doesn’t? Unique or not, what does this mean for adopting DevOps in enterprise size organizations? He also explored differe...
Storage administrators find themselves walking a line between meeting employees’ demands to use public cloud storage services, and their organizations’ need to store information on-premises for security, performance, cost and compliance reasons. However, as file sharing protocols like CIFS and NFS continue to lose their relevance, simply relying only on a NAS-based environment creates inefficiencies that hurt productivity and the bottom line. IT wants to implement cloud storage it can purchase a...
The emergence of cloud computing and Big Data warrants a greater role for the PMO to successfully manage enterprise transformation driven by these powerful trends. As the adoption of cloud-based services continues to grow, a governance model is needed to orchestrate enterprise cloud implementations and harness the power of Big Data analytics. In his session at Cloud Expo, Mahesh Singh, President of BigData, Inc., discussed how the Enterprise PMO takes center stage not only in developing the app...
Cloud Foundry open Platform as a Service makes it easy to operate, scale and deploy application for your dedicated cloud environments. It enables developers and operators to be significantly more agile, writing great applications and deliver them in days instead of months. Cloud Foundry takes care of all the infrastructure and network plumbing that you need to build, run and operate your applications and can do this while patching and updating systems and services without any downtime.