Click here to close now.




















Welcome!

News Feed Item

Mazor Robotics Announces Second Quarter and Six Months 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 second quarter and six months ended June 30, 2014.

“During the second quarter, we continued to build a strong pipeline of sales activity in the U.S. and Asia, our key target markets. Clinical interest from surgeons is at an all-time high. However during the quarter we faced extended administrative approval processes for system orders by potential U.S. customers. As a result, we sold two Renaissance systems in the U.S., including the first commercial sale with the brain module to Bryan Medical Center in Lincoln, NE. In Asia, we sold two systems in the quarter, including our first system in Hong Kong and a second system in Taiwan to a well-recognized teaching hospital, expanding our presence in the region,” commented Ori Hadomi, Mazor's Chief Executive Officer.

“The interest in the Renaissance system remains robust, as measured by feedback from surgeons and attendance at our labs. We anticipate this will translate into increased system sales in the second half of 2014 as compared to the first half of the year. In addition, our effort to build system utilization resulted in 17% year over year quarterly recurring revenue growth reflecting record utilization of the systems, primarily in the U.S.,” concluded Mr. Hadomi.

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

Revenue for the three months ended June 30, 2014 was $4.5 million compared to $6.2 million in the year-ago second quarter. U.S.-generated revenue was $3.1 million compared to $4.4 million in the year-ago quarter, primarily due to lower system sales. International non-U.S. revenue was $1.4 million compared to $1.8 million reported in the first quarter of 2013, reflecting two system sales in the second quarter of 2014 compared to three system sales in the 2013 second quarter. Revenue from system kit sales, services and other increased to $2.1 million in the second quarter of 2014, representing a 17% increase compared to $1.8 million in the second quarter of 2013.

Gross margin for the three months ended June 30, 2014 was 79.0% compared to 79.7% in the year-ago second quarter.

Total operating expenses in the second quarter of 2014 were $7.6 million, compared to $5.7 million in the second quarter of 2013, reflecting the Company’s increased investments in sales, marketing and research and development resources. Operating loss for the second quarter of 2014 was $4.1 million, compared to an operating loss of $0.7 million in the second quarter of 2013. Net loss for the second quarter of 2014 decreased to $4.1 million, or $0.10 per share, compared to a net loss of $4.4 million, or $0.15 per share, in the second quarter of 2013.

Cash used in operating activities in the second quarter of 2014 was $3.1 million, compared to $0.2 million in the second quarter of 2013. As of June 30, 2014, cash, cash equivalents and marketable securities totaled $58.4 million.

SECOND 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 second quarter of 2014. On a non-GAAP-basis, the net loss in the second quarter of 2014 was $3.7 million, or $0.09 per share, compared to $0.5 million, or $0.02 per share in the second quarter of 2013.

SIX MONTHS ENDED JUNE 30, 2014 FINANCIAL RESULTS IFRS BASIS (“GAAP”)

For the six months ended June 30, 2014, revenue totaled $9.4 million compared to $11.1 million for the six months ended June 30, 2013. Recurring revenue totaled to $4.2 million, compared to $3.0 in the six months ended June 30, 2013. The growth in recurring revenue is attributed to the increased utilization of the Company’s Renaissance system, both in the U.S. and globally. Gross margin for the six months ended June 30, 2014 was 78.9% compared with 80.1% in the six months ended June 30, 2013. Net loss for the six months ended June 30, 2014, was $7.7 million compared to $15.0 million in the first six months of 2013.

SIX MONTHS ENDED JUNE 30, 2014 FINANCIAL RESULTS ON NON-GAAP BASIS

On a non-GAAP basis, the net loss for the first six months of 2014 was $6.9 million, or $0.17 per share, compared to a net loss of $1.0 million, or $0.03 per share, in the first six months of 2013.

CONFERENCE CALL INFORMATION

The company will host a conference call to discuss these results on Tuesday, August 5, 2014, at 8:30 AM ET (3:30 PM IST). Investors within the United States interested in participating are invited to call 877-269-7756. Participants in Israel can use the toll free dial-in number 809-406-247. All other international participants can use the dial-in number 201-689-7817.

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 877-660-6853 and reference the Replay Access Code: 13587700. All international callers can dial 201-612-7415, using the same Replay Access Code. To access the webcast, please visit www.mazorrobotics.com, click 'Investor Relations.'

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 50,000 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 outlook for increased sales in the second half of 2014, 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)

           

Six month period

Three month period

ended June 30,

ended June 30,

 

 
2014       2013 2014       2013
Revenue

$

9,372

$ 11,150

$

4,494 $ 6,244
 
Cost of revenue

$

1,973   $ 2,216  

$

942   $ 1,266  
 
Gross profit

$

7,399   $ 8,934   $ 3,552   $ 4,978  
 
Operating costs and expenses:
Research and development

$

2,962 $ 1,915

$

1,318 $ 987
Selling and Marketing

$

10,309 $ 7,121

$

5,398 $ 4,012
General and administrative

$

1,850   $ 1,235  

$

940   $ 660  
Total operating costs and expenses $ 15,121 $ 10,271 $ 7,656 $ 5,659
 
Loss from operations $ (7,722 ) $ (1,337 ) $ (4,104 ) $ (681 )
 
Financing income (expenses), net

$

61   $ (13,532 )

$

37   $ (3,634 )
 
Loss before taxes on income $ (7,661 ) $ (14,869 ) $ (4,067 ) $ (4,315 )
 
Taxes on income

$

73 $ 100

$

33 $ 62
               
Net loss $ (7,734 ) $ (14,969 )

$

(4,100 ) $ (4,377 )
 
 
Net loss attributable to ordinary shareholders

$

(7,734 ) $ (14,969 )

$

(4,100 ) $ (4,377 )
 
Net loss per share – Basic and diluted attributable to ordinary shareholders $ (0.19 ) $ (0.51 ) $ (0.10 ) $ (0.15 )
 
Weighted average common shares outstanding – Basic and diluted

41,536

  29,469  

41,896

  29,630  
 
           

Mazor Robotics Ltd.

Consolidated Statements of Financial Position as of

(U.S. Dollars in thousands)

 
June 30, December 31,
2014 2013
Unaudited

Audited

Balance Sheet Data:
Current Assets
Cash and cash equivalents $ 26,734

$

19,803

Investments in marketable securities $ 31,695

$

45,014

Trade receivables $

2,756

$

1,974

Other accounts receivable $ 1,190

$

655

Inventory $ 3,248

$

2,480

Total Current Assets $ 65,623

$

69,926

 
Non-Current Assets
Prepaid lease fees and deferred expenses $ 83

$

78

Property and equipment, net $ 854

$

792

Intangible assets, net $ -

$

93

Total Non-Current Assets $ 937

$

963

Total assets $ 66,560

$

70,889

 
Current liabilities
Trade payables $ 2,063

$

1,899

Other accounts payable $ 4,152

$

4,565

Total current liabilities $ 6,215

$

6,464

 
Non-Current Liabilities
Employee benefits $ 349

$

311

Deferred tax liability $ 21

$

21

Total Non-Current liabilities $ 370

$

332

Total liabilities $ 6,585

$

6,796

 
Equity
Share capital $ 110

$

106

Share premium $ 134,939

$

130,472

Amounts allocated to share options $ 77

$

77

Capital reserve for share-based payment transactions $ 2,999

$

3,854

Foreign currency translation reserve $ 2,119

$

2,119

Accumulated loss $ (80,269 )

$

(72,535

)

Total equity $ 59,975

$

64,093

Total liabilities and equity $ 66,560

$

70,889

 
 

Mazor Robotics Ltd.

Reconciliations of GAAP to Non-GAAP Financial Measures

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

 (UNAUDITED)

 
     

Six month period

       

Three month period

ended June 30,

ended June 30,

   
2014     2013 2014     2013
GAAP gross profit

$

7,399

$ 8,934

$

3,552

$ 4,978
Amortization of intangible assets

$

93

$ 146

$

20

$ 73
Stock-based compensation:

$

12

  $ 5  

$

5

  $ 3  
Non-GAAP gross profit

$

7,504

$ 9,085

$

3,577

$ 5,054
GAAP gross profit as percentage of revenues  

79

%

 

80

%

 

79

%  

80

%

Non-GAAP gross profit as percentage of revenues

80

%

81

%

80

%

81 %
 
GAAP operating expenses

$

15,121

$ 10,271

$

7,656

$ 5,659
Stock-based compensation:
Research and development

$

81

$ 49

$

43

$ 22
Selling and Marketing

$

417

$ 148

$

217

$ 79
General and administrative

$

218

  $ 160  

$

110

  $ 78  
Non-GAAP operating expenses

$

14,405

$

9,914

$

7,286

$

5,480

 
GAAP operating loss

$

(7,722

)

$ (1,337 )

$

(4,104

)

$ (681 )
- - -
Non-GAAP operating loss

$

(6,901

)

$

(829

)

$

(3,709

)

$

(426

)

 
GAAP Financing income (expense), net

$

61

$ (13,532 )

$

37

$ (3,634 )
Change in fair value of derivative instruments

$

-

  $ 13,510  

$

-

  $ 3,603  
Non-GAAP Financing expenses, net $

61

$

(22

)

$

37

$

(31

)

 
GAAP net loss

$

(7,734

)

$ (14,969 )

$

(4,100

)

$ (4,377 )
Stock-based compensation

$

728

$ 362

$

375

$ 182
Amortization of intangible assets

$

93

$ 146

$

20

$ 73
Change in fair value of derivative instruments

$

-

  $ 13,510  

$

-

  $ 3,603  
Non-GAAP net loss

$

(6,913

)

$ (951 )

$

(3,705

)

$ (519 )
 
GAAP basic and diluted loss per share

$

(0.19

)

$ (0.51 )

$

(0.10

)

$ (0.15 )
 
Non-GAAP basic and diluted loss per share

$

(0.17

)

$ (0.03 )

$

(0.09

)

$ (0.02 )
 
 

Mazor Robotics Ltd.

CONSOLIDATED CASH FLOW STATEMENTS

(U.S. Dollars in thousands)

 
      Six months ended         Three months ended
June 30, June 30,
2014         2013 2014         2013
Cash flows from operating activities:
Loss for the period $ (7,734 ) $ (14,969 ) $ (4,100 ) $ (4,377 )
 
Adjustments:
Depreciation and amortization $ 272 $ 292 $ 111 $ 146

 

Change in fair value of derivative liability on account of warrants

$ - $ 13,510 $ - $ 3,603
Finance (income) expenses, net $ (34 ) $ (14 ) $ (106 ) $ 33
Share-based payment $ 728 $ 362 $ 375 $ 182
Taxes on income $ 73 $ 100 $ 33 $ 62
$ 1,039 $ 14,250 $ 413 $ 4,026
 
Change in inventory $ (768 ) $ (390 ) $ (534 ) $ (403 )
Change in trade and other accounts receivable $ (1,320 ) $ (2,390 ) $ 343 $ (187 )
Change in prepaid lease fees $ (5 ) $ (6 ) $ - $ (1 )
Change in trade and other accounts payable $ 297 $ 1,581 $ 743 $ 787
Change in employee benefits $ 38 $ 109 $ 13 $ 4
$ (1,758 ) $ (1,096 ) $ 565 $ 200
 
Interest received $ 41 $ 58 $ 39 $ -
Income tax paid $ (14 ) $ (35 ) $ (3 ) $ -
$ 27 $ 23 $ 36 $ -
 
Net cash (used in) provided by operating activities $ (8,426 ) $ (1,792 ) $ (3,086 ) $ (151 )
 
Cash flows from investing activities:
Proceeds from (investment in) short-term investments and deposits, net $ 13,326 $ 4,175 $ 15,079 $ 1,344
Purchase of property and equipment $ (241 ) $ (151 ) $ (118 ) $ (68 )
Net cash provided by investing activities $ 13,085 $ 4,024 $ 14,961 $ 1,276
 

 

 

Cash flows used in financing activities:

Proceeds from exercise of share options and warrants, net $ - $ 3,283 $ - $ 3,283
Issuance Expenses $ (294 ) $ - $ - $ 160
Proceeds from exercise of share options by employees $ 2,888 $ 259 $ 504 $ 243
Repayment of loans to the OCS $ (324 ) $ (247 ) $ - $ (247 )

Net cash (used in) provided by financing activities

$ 2,270

$

3,295

$ 504

$

3,439

 
Net increase in cash and cash equivalents $ 6,929

$

5,527

$ 12,379

$

4,564

 

Cash and cash equivalents at the beginning of the period

$ 19,803 $ 12,797 $ 14,325 $ 13,744

 

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

$ 2 $ 8 $ 30

$

24

 
Cash and cash equivalents at the end of the period $ 26,734 $ 18,332 $ 26,734 $ 18,332
 
Supplementary cash flows information:
Transfer of inventory to fixed assets $ - $ 67 $ -

$

67

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
Skeuomorphism usually means retaining existing design cues in something new that doesn’t actually need them. However, the concept of skeuomorphism can be thought of as relating more broadly to applying existing patterns to new technologies that, in fact, cry out for new approaches. In his session at DevOps Summit, Gordon Haff, Senior Cloud Strategy Marketing and Evangelism Manager at Red Hat, discussed why containers should be paired with new architectural practices such as microservices rathe...
With the proliferation of connected devices underpinning new Internet of Things systems, Brandon Schulz, Director of Luxoft IoT – Retail, will be looking at the transformation of the retail customer experience in brick and mortar stores in his session at @ThingsExpo. Questions he will address include: Will beacons drop to the wayside like QR codes, or be a proximity-based profit driver? How will the customer experience change in stores of all types when everything can be instrumented and a...
It’s been proven time and time again that in tech, diversity drives greater innovation, better team productivity and greater profits and market share. So what can we do in our DevOps teams to embrace diversity and help transform the culture of development and operations into a true “DevOps” team? In her session at DevOps Summit, Stefana Muller, Director, Product Management – Continuous Delivery at CA Technologies, answered that question citing examples, showing how to create opportunities for ...
As more and more data is generated from a variety of connected devices, the need to get insights from this data and predict future behavior and trends is increasingly essential for businesses. Real-time stream processing is needed in a variety of different industries such as Manufacturing, Oil and Gas, Automobile, Finance, Online Retail, Smart Grids, and Healthcare. Azure Stream Analytics is a fully managed distributed stream computation service that provides low latency, scalable processing of ...
Everyone talks about continuous integration and continuous delivery but those are just two ends of the pipeline. In the middle of DevOps is continuous testing (CT), and many organizations are struggling to implement continuous testing effectively. After all, without continuous testing there is no delivery. And Lab-As-A-Service (LaaS) enhances the CT with dynamic on-demand self-serve test topologies. CT together with LAAS make a powerful combination that perfectly serves complex software developm...
WebRTC has had a real tough three or four years, and so have those working with it. Only a few short years ago, the development world were excited about WebRTC and proclaiming how awesome it was. You might have played with the technology a couple of years ago, only to find the extra infrastructure requirements were painful to implement and poorly documented. This probably left a bitter taste in your mouth, especially when things went wrong.
Any Ops team trying to support a company in today’s cloud-connected world knows that a new way of thinking is required – one just as dramatic than the shift from Ops to DevOps. The diversity of modern operations requires teams to focus their impact on breadth vs. depth. In his session at DevOps Summit, Adam Serediuk, Director of Operations at xMatters, Inc., will discuss the strategic requirements of evolving from Ops to DevOps, and why modern Operations has begun leveraging the “NoOps” approa...
As more intelligent IoT applications shift into gear, they’re merging into the ever-increasing traffic flow of the Internet. It won’t be long before we experience bottlenecks, as IoT traffic peaks during rush hours. Organizations that are unprepared will find themselves by the side of the road unable to cross back into the fast lane. As billions of new devices begin to communicate and exchange data – will your infrastructure be scalable enough to handle this new interconnected world?
In today's digital world, change is the one constant. Disruptive innovations like cloud, mobility, social media, and the Internet of Things have reshaped the market and set new standards in customer expectations. To remain competitive, businesses must tap the potential of emerging technologies and markets through the rapid release of new products and services. However, the rigid and siloed structures of traditional IT platforms and processes are slowing them down – resulting in lengthy delivery ...
In their Live Hack” presentation at 17th Cloud Expo, Stephen Coty and Paul Fletcher, Chief Security Evangelists at Alert Logic, will provide the audience with a chance to see a live demonstration of the common tools cyber attackers use to attack cloud and traditional IT systems. This “Live Hack” uses open source attack tools that are free and available for download by anybody. Attendees will learn where to find and how to operate these tools for the purpose of testing their own IT infrastructu...
SYS-CON Events announced today that IceWarp will exhibit at the 17th International Cloud Expo®, which will take place on November 3–5, 2015, at the Santa Clara Convention Center in Santa Clara, CA. IceWarp, the leader of cloud and on-premise messaging, delivers secured email, chat, documents, conferencing and collaboration to today's mobile workforce, all in one unified interface
Whether you like it or not, DevOps is on track for a remarkable alliance with security. The SEC didn’t approve the merger. And your boss hasn’t heard anything about it. Yet, this unruly triumvirate will soon dominate and deliver DevSecOps faster, cheaper, better, and on an unprecedented scale. In his session at DevOps Summit, Frank Bunger, VP of Customer Success at ScriptRock, will discuss how this cathartic moment will propel the DevOps movement from such stuff as dreams are made on to a prac...
Too often with compelling new technologies market participants become overly enamored with that attractiveness of the technology and neglect underlying business drivers. This tendency, what some call the “newest shiny object syndrome,” is understandable given that virtually all of us are heavily engaged in technology. But it is also mistaken. Without concrete business cases driving its deployment, IoT, like many other technologies before it, will fade into obscurity.
SYS-CON Events announced today that G2G3 will exhibit at SYS-CON's @DevOpsSummit Silicon Valley, which will take place on November 3–5, 2015, at the Santa Clara Convention Center in Santa Clara, CA. Based on a collective appreciation for user experience, design, and technology, G2G3 is uniquely qualified and motivated to redefine how organizations and people engage in an increasingly digital world.
Consumer IoT applications provide data about the user that just doesn’t exist in traditional PC or mobile web applications. This rich data, or “context,” enables the highly personalized consumer experiences that characterize many consumer IoT apps. This same data is also providing brands with unprecedented insight into how their connected products are being used, while, at the same time, powering highly targeted engagement and marketing opportunities. In his session at @ThingsExpo, Nathan Trel...