Corindus Vascular Robotics Reports First Quarter 2017 Results


Reiterates Financial Outlook for 2017

Conference Call

Management will host an investment community conference call today beginning at 4:30 p.m. ET. Investors interested in listening to the conference call may do so by dialing (877) 201-0168 for domestic callers, or (647) 788-4901 for international callers (Conference ID: 5584634), or from the webcast on the “Investor Relations” section of the Company’s website at: www.corindus.com. Following the call, a replay will be available on the Investor Relations section of the Company’s website.

Corindus Vascular Robotics, Inc. [NYSE MKT: CVRS], a leading developer of precision vascular robotics, today reported financial results for the quarter ended March 31, 2017.

Recent Highlights and Accomplishments

  • Realized revenue of $0.8 million in the first quarter 2017
  • Backlog of an additional $3.0 – $3.5 million in revenue expected to be recognized in 2017 based on orders received as of March 31, 2017
  • Installed 3 new CorPath® Systems in the first quarter, increasing the total installed base to 48 Systems
  • Strong demand and early traction for the next generation CorPath GRX System in the first quarter; orders for 21 CorPath GRX Systems from large hospital groups in the United States and from distributor partner in Japan
    • Includes 15 new System orders and 6 purchased upgrades
  • Broadcast two live robotic-assisted PCI procedures using the CorPath GRX System from Fu Wai Hospital in China which were transmitted to more than 12,000 attendees at conferences in Beijing and South Korea
  • Completed private placement of common stock bringing aggregate proceeds of approximately $45 million to the Company

“We achieved many accomplishments in the first quarter as we position Corindus for global success in bringing robotics to the cardiology sector,” said Mark Toland, President and Chief Executive Officer of Corindus. “The receipt of several multi-system orders in the U.S., our broad expansion into Asia, and first commercial cases using the CorPath GRX System at prestigious U.S. hospitals demonstrate meaningful progress toward our strategic and commercial objectives. With additional capital raised in the quarter, we are excited to accelerate our momentum into 2017.”

First Quarter 2017 Financial Results

Revenue for the first quarter of 2017 was $0.8 million compared to $1.1 million for the same period in the prior year. The decrease is due primarily to the deferral of system revenue associated with a future obligation to upgrade multiple customer units from the CorPath 200 System to the CorPath GRX System.

Installed 3 new CorPath Systems in the first quarter of 2017, increasing the total installed base to 48 CorPath Systems. Shipped 284 CorPath Cassettes in the first quarter 2017.

Gross loss was $1.1 million for the first quarter of 2017, compared to a gross profit of $0.03 million for the first quarter of 2016. Cost of revenues for the first quarter of 2017 continued to include the effect of under-utilization of production facilities as well as the cost of CorPath GRX System upgrades that were installed pursuant to pre-existing contractual arrangements.

Selling, general and administrative expenses were $6.1 million in the first quarter of 2017, compared to $5.0 million in the first quarter of 2016. The increase is primarily due to incremental non-cash stock-based compensation expense related to the CEO transition during 2016, increased sales compensation associated with incremental headcount, and investment in our medical education initiatives. Research and development expenses were $2.6 million for the first quarter of 2017, compared to $2.3 million in the first quarter of 2016. The increase is primarily due to the costs associated with the CorPath GRX System development.

Net loss was $9.9 million for the first quarter of 2017, compared to a net loss of $7.6 million in the first quarter of 2016.

Cash and cash equivalents as of March 31, 2017 were $45.2 million.

2017 Guidance

Corindus continues to expect full year 2017 revenue to be in the range of $13 million to $15 million as well as the implementation of at least 25 new cardiovascular programs in 2017.

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