Mazor Robotics: Company Reports Record First Quarter 2017 Revenue which Increases 83% Year-over-Year to $11.7 Million

Saturday, February 27, 2021

CONFERENCE CALL INFORMATION

The Company will host a conference call to discuss its first quarter financial results as well as recent corporate developments on May 10, 2017 at 8:30 AM EDT (3:30 PM IDT). Investors within the United States interested in participating are invited to call 888-298-3457. Participants in Israel can use the toll-free dial-in number 1-80-924-5906. All other international participants can use the dial-in number 719-457-2689.

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 1-866-375-1919 and reference the Replay Access Code: 8737181. All international callers can dial +1-719-457-0820, using the same Replay Access Code. To access the webcast, please visit www.mazorrobotics.com and select ‘Investor Relations.’

Mazor Robotics Ltd. (TASE: MZOR; NASDAQGM: MZOR), a pioneer and a leader in the field of surgical guidance systems, reported record first quarter revenue of $11.7 million. As previously announced, the Company received purchase orders for six systems in the 2017 first quarter and ended the quarter with a backlog of 14 systems.

“Our first quarter of 2017 was highlighted by record first quarter revenue and expanded utilization of our Renaissance system installed base,” commented Ori Hadomi, Chief Executive Officer. “Our revenue growth was driven by two factors. First, we supplied 12 Mazor X systems as we continued to process our 2016 year-end backlog. Second, we had record utilization by our installed base during the quarter. The enthusiasm for the Mazor X continues, and to date we have received four purchase orders for the Mazor X in the second quarter of 2017.”

FIRST QUARTER 2017 FINANCIAL RESULTS ON IFRS BASIS (“GAAP”)

Revenue for the three months ended March 31, 2017 increased 83% to $11.7 million compared to $6.4 million in the year-ago first quarter. U.S. revenue increased 100% to $11.2 million compared to $5.6 million in the year-ago first quarter, as the Company recognized revenue from 12 Mazor X systems, compared to four Renaissance systems in the 2016 first quarter. The Company ended the quarter with a backlog of 14 Mazor X systems; revenue from these systems is expected to be recorded in 2017. International revenue was $0.5 million compared to $0.8 million in the year-ago first quarter. Recurring revenue from kit sales, services and others increased 37% to $5.2 million in the first quarter of 2017, compared to $3.8 million in the year-ago first quarter. The growth is attributed mainly to the increase of the installed base.

The Company’s gross margin for the three months ended March 31, 2017 was 64.6% compared to 74.2% in the year-ago first quarter. This expected decrease is attributed mainly to discounted pricing to the Company’s Mazor X distribution partner, the higher manufacturing costs of the Mazor X compared to the Renaissance system, and the inclusion of two Renaissance trade-ins to Mazor X. Total operating expenses were $13.3 million compared to $10.0 million in the year-ago first quarter primarily reflecting the Company’s increased investments in sales and marketing activities. Operating loss was $5.7 million compared to an operating loss of $5.2 million in the year-ago first quarter. Net loss for the first quarter of 2017 was $5.2 million, or $0.11 per share, compared to a net loss of $5.1 million, or $0.12 per share, for the year-ago first quarter.

Cash generated by operating activities during the first quarter was $0.7 million compared to $2.9 million cash used in operating activities in the year-ago first quarter. As of March 31, 2017, cash, cash equivalents and investments totaled $63.9 million.

FIRST QUARTER 2017 FINANCIAL RESULTS ON NON-GAAP BASIS

The tables below include reconciliation of the Company’s GAAP results to non-GAAP results. The reconciliation relates to non-cash expenses in the amount of $1.3 million with respect to amortization of intangible assets and to share-based expenses recorded in the first quarter of 2017. On a non-GAAP basis, the net loss in the first quarter of 2017 was $3.9 million, or $0.08 per share, compared to $4.2 million, or $0.10 per share, for the year-ago first quarter.

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, net loss and basic and diluted earnings per share that exclude the effects of non-cash expense of amortization of intangible assets and share-based expenses. 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.

Mazor Robotics Ltd.
CONSOLIDATED STATEMENT OF INCOME
(in thousands, except per share data)
Three month period
ended March 31,
2017 2016
(Unaudited) (Unaudited)
Revenue $ 11,719 $ 6,419
Cost of revenue $ 4,149 $ 1,654
Gross profit $ 7,570 $ 4,765
Operating costs and expenses:
Research and development, net $ 1,792 $ 2,131
Selling and marketing $ 9,893 $ 6,873
General and administrative $ 1,571 $ 983
Total operating costs and expenses $ 13,256 $ 9,987
Loss from operations $ (5,686) $ (5,222)
Financing income, net $ 211 $ 175
Loss before taxes on income $ (5,475) $ (5,047)
Income tax expense (benefit) $ (243) $ 65
Net loss $ (5,232) $ (5,112)
Net loss per share – Basic and diluted $ (0.11) $ (0.12)
Weighted average common shares outstanding – Basic and diluted 47,750 42,414
Mazor Robotics Ltd.
CONSOLIDATED STATEMENTS OF FINANCIAL POSITION AS OF
(U.S. Dollars in thousands)
March 31, December 31,
2017 2016
(Unaudited) (Audited)
Current assets
Cash and cash equivalents $ 25,896 $ 14,954
Short-term investments 32,654 37,862
Trade receivables 3,076 8,225
Other current assets 2,109 1,728
Inventory 5,777 4,715
Total current assets 69,512 67,484
Non-current assets
Long-term investments 5,366 9,017
Property and equipment, net 4,045 3,615
Intangible assets, net 2,176 2,258
Other non-current assets 980 351
Total non-current assets 12,567 15,241
Total assets $ 82,079 $ 82,725
Current liabilities
Trade payables $ 2,314 $ 5,018
Deferred revenue 5,879 4,031
Other current liabilities 9,998 8,462
Total current liabilities 18,191 17,511
Non-current liabilities
Employee benefits 403 325
Total non-current liabilities 403 325
Total liabilities 18,594 17,836
Equity
Share capital 125 124
Share premium 178,252 174,647
Capital reserve for share-based payment transactions 10,081 9,859
Foreign currency translation reserve 2,119 2,119
Accumulated loss (127,092) (121,860)
Total equity 63,485 64,889
Total liabilities and equity $ 82,079 $ 82,725
Mazor Robotics Ltd.
CONSOLIDATED CASH FLOW STATEMENTS
(U.S. Dollars in thousands)
Three month period
ended March 31,
2017 2016
(Unaudited) (Unaudited)
Cash flows from operating activities:
Loss for the period $ (5,232) $ (5,112)
Adjustments:
Depreciation and amortization $ 342 $ 146
Finance income, net $ (50) $ (142)
Share-based payment $ 1,201 $ 916
Income tax expense (tax benefit) $ (243) $ 65
$ 1,250 $ 985
Change in inventory $ (1,362) $ (25)
Change in trade and other accounts receivable $ 4,771 $ 1,738
Change in prepaid lease fees $ (21) $ (10)
Change in trade and other accounts payable $ 1,103 $ (536)
Change in employee benefits $ 78 $ 76
$ 4,569 $ 1,243
Interest received $ 72 $ 64
Income tax paid $ $ (37)
$ 72 $ 27
Net cash provided by (used in) operating activities $ 659 $ (2,857)
Cash flows from investing activities:
Proceeds from short-term investments, net $ 8,957 $ 6,646
Investments in long-term investments $ (98) $ (496)
Purchase of property and equipment $ (809) $ (418)
Net cash provided by investing activities $ 8,050 $ 5,732
Cash flows from financing activities:
Proceeds from exercise of share options and warrants, net $ $ 481
Proceeds from exercise of share options by employees $ 2,259 $ 75
Net cash provided by financing activities $ 2,259 $ 556
Net increase in cash and cash equivalents $ 10,968 $ 3,431
Cash and cash equivalents at the beginning of the period $ 14,954 $ 13,519
Effect of exchange rate differences on balances of
cash and cash equivalents $ (26) $ 58
Cash and cash equivalents at the end of the period $ 25,896 $ 17,008
Supplementary cash flows information:
Purchase of property and equipment in credit $ (148) $ (107)
Classification of inventory to fixed assets $ 300 $
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,
2017 2016
GAAP gross profit $ 7,570 $ 4,765
Amortization of intangible assets 82
Share-based payments 53 36
Non-GAAP gross profit $ 7,705 $ 4,801
GAAP gross profit as percentage of revenues 64.6% 74.2%
Non-GAAP gross profit as percentage of revenues 65.7% 74.8%
GAAP operating expenses $ 13,256 $ 9,987
Share-based payments:
Research and development $ 158 $ 150
Selling and marketing $ 440 $ 520
General and administrative $ 550 $ 210
Non-GAAP operating expenses $ 12,108 $ 9,107
GAAP operating loss $ (5,686) $ (5,222)
Non-GAAP operating loss $ (4,403) $ (4,306)
GAAP net loss $ (5,232) $ (5,112)
Amortization of intangible assets 82
Share-based payments $ 1,201 $ 916
Non-GAAP net loss $ (3,949) $ (4,196)
GAAP basic and diluted loss per share $ (0.11) $ (0.12)
Non-GAAP basic and diluted loss per share $ (0.08) $ (0.10)
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