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.”


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.


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.


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.


(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
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)



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





Non-GAAP gross profit as percentage of revenues





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.
(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)
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
For basic one-to-one voice or video calling solutions, WebRTC has proven to be a very powerful technology. Although WebRTC’s core functionality is to provide secure, real-time p2p media streaming, leveraging native platform features and server-side components brings up new communication capabilities for web and native mobile applications, allowing for advanced multi-user use cases such as video broadcasting, conferencing, and media recording.
Established in 1998, Calsoft is a leading software product engineering Services Company specializing in Storage, Networking, Virtualization and Cloud business verticals. Calsoft provides End-to-End Product Development, Quality Assurance Sustenance, Solution Engineering and Professional Services expertise to assist customers in achieving their product development and business goals. The company's deep domain knowledge of Storage, Virtualization, Networking and Cloud verticals helps in delivering ...
SYS-CON Events announced today that Cloudbric, a leading website security provider, will exhibit at the 19th International Cloud Expo, which will take place on November 1–3, 2016, at the Santa Clara Convention Center in Santa Clara, CA. Cloudbric is an elite full service website protection solution specifically designed for IT novices, entrepreneurs, and small and medium businesses. First launched in 2015, Cloudbric is based on the enterprise level Web Application Firewall by Penta Security Sys...
The best way to leverage your Cloud Expo presence as a sponsor and exhibitor is to plan your news announcements around our events. The press covering Cloud Expo and @ThingsExpo will have access to these releases and will amplify your news announcements. More than two dozen Cloud companies either set deals at our shows or have announced their mergers and acquisitions at Cloud Expo. Product announcements during our show provide your company with the most reach through our targeted audiences.
In the next five to ten years, millions, if not billions of things will become smarter. This smartness goes beyond connected things in our homes like the fridge, thermostat and fancy lighting, and into heavily regulated industries including aerospace, pharmaceutical/medical devices and energy. “Smartness” will embed itself within individual products that are part of our daily lives. We will engage with smart products - learning from them, informing them, and communicating with them. Smart produc...
SYS-CON Events announced today that 910Telecom will exhibit at the 19th International Cloud Expo, which will take place on November 1–3, 2016, at the Santa Clara Convention Center in Santa Clara, CA. Housed in the classic Denver Gas & Electric Building, 910 15th St., 910Telecom is a carrier-neutral telecom hotel located in the heart of Denver. Adjacent to CenturyLink, AT&T, and Denver Main, 910Telecom offers connectivity to all major carriers, Internet service providers, Internet backbones and ...
Extreme Computing is the ability to leverage highly performant infrastructure and software to accelerate Big Data, machine learning, HPC, and Enterprise applications. High IOPS Storage, low-latency networks, in-memory databases, GPUs and other parallel accelerators are being used to achieve faster results and help businesses make better decisions. In his session at 18th Cloud Expo, Michael O'Neill, Strategic Business Development at NVIDIA, focused on some of the unique ways extreme computing is...
SYS-CON Events announced today that Coalfire will exhibit at the 19th International Cloud Expo, which will take place on November 1–3, 2016, at the Santa Clara Convention Center in Santa Clara, CA. Coalfire is the trusted leader in cybersecurity risk management and compliance services. Coalfire integrates advisory and technical assessments and recommendations to the corporate directors, executives, boards, and IT organizations for global brands and organizations in the technology, cloud, health...
In his session at 19th Cloud Expo, Claude Remillard, Principal Program Manager in Developer Division at Microsoft, will contrast how his team used config as code and immutable patterns for continuous delivery of microservices and apps to the cloud. He will show the immutable patterns helps developers do away with most of the complexity of config as code-enabling scenarios such as rollback, zero downtime upgrades with far greater simplicity. He will also have live demos of building immutable pipe...
SYS-CON Events announced today that Transparent Cloud Computing (T-Cloud) Consortium will exhibit at the 19th International Cloud Expo®, which will take place on November 1–3, 2016, at the Santa Clara Convention Center in Santa Clara, CA. The Transparent Cloud Computing Consortium (T-Cloud Consortium) will conduct research activities into changes in the computing model as a result of collaboration between "device" and "cloud" and the creation of new value and markets through organic data proces...
The Internet of Things (IoT), in all its myriad manifestations, has great potential. Much of that potential comes from the evolving data management and analytic (DMA) technologies and processes that allow us to gain insight from all of the IoT data that can be generated and gathered. This potential may never be met as those data sets are tied to specific industry verticals and single markets, with no clear way to use IoT data and sensor analytics to fulfill the hype being given the IoT today.
WebRTC defines no default signaling protocol, causing fragmentation between WebRTC silos. SIP and XMPP provide possibilities, but come with considerable complexity and are not designed for use in a web environment. In his session at @ThingsExpo, Matthew Hodgson, technical co-founder of the Matrix.org, discussed how Matrix is a new non-profit Open Source Project that defines both a new HTTP-based standard for VoIP & IM signaling and provides reference implementations.
In his general session at 18th Cloud Expo, Lee Atchison, Principal Cloud Architect and Advocate at New Relic, discussed cloud as a ‘better data center’ and how it adds new capacity (faster) and improves application availability (redundancy). The cloud is a ‘Dynamic Tool for Dynamic Apps’ and resource allocation is an integral part of your application architecture, so use only the resources you need and allocate /de-allocate resources on the fly.
Traditional on-premises data centers have long been the domain of modern data platforms like Apache Hadoop, meaning companies who build their business on public cloud were challenged to run Big Data processing and analytics at scale. But recent advancements in Hadoop performance, security, and most importantly cloud-native integrations, are giving organizations the ability to truly gain value from all their data. In his session at 19th Cloud Expo, David Tishgart, Director of Product Marketing ...
As data explodes in quantity, importance and from new sources, the need for managing and protecting data residing across physical, virtual, and cloud environments grow with it. Managing data includes protecting it, indexing and classifying it for true, long-term management, compliance and E-Discovery. Commvault can ensure this with a single pane of glass solution – whether in a private cloud, a Service Provider delivered public cloud or a hybrid cloud environment – across the heterogeneous enter...