DENVER, May 10, 2023
/PRNewswire/ -- ViewRay, Inc. (Nasdaq: VRAY) (the "Company") today
announced financial results for the first quarter ended
March 31, 2023.
First Quarter 2023 Highlights
- Total revenue for the first quarter 2023 was approximately
$22.5 million, primarily from three
revenue units, compared to approximately $18.9 million, primarily from three revenue
units, in the first quarter of 2022.
- Received 13 new orders for MRIdian systems, totaling
$68.3 million.
- Total backlog increased to $411.0
million as of March 31, 2023,
compared to approximately $331.0
million as of March 31,
2022.
- Cash and cash equivalents, inclusive of restricted cash, was
$85.5 million as of March 31, 2023.
- Net loss for the first quarter 2023 was $28.9 million, compared to a net loss of
$25.8 million in the first quarter of
2022.
- Adjusted EBITDA was a loss of approximately $25.2 million in the first quarter 2023 compared
to an adjusted EBITDA loss of approximately $21.3 million in the first quarter 2022. See "Use
of Non-GAAP Financial Measures" below.
The Company has begun a cost reduction program with expected
annual savings of $19.0 million -
$23.0 million, of which approximately
65% of the savings will be realized in fiscal year 2023. The
program includes a reduction in discretionary spending and a
workforce reduction of approximately 11%. We expect to incur
restructuring charges of approximately $1.8
million associated with the workforce reduction. We
are prepared to take further cost measures if necessary.
As part of our announced reductions, Bill Burke will step down as CFO. Bill has led
extensive planning to prepare us for the potential pathways that
lie ahead. We are grateful for his efforts. Jake Signoriello, who has served as our VP of
Finance and Investor Relations, has agreed to serve as CFO in an
interim capacity as we go forward.
"Our priority remains to ensure we pursue the path that is most
favorable for our stakeholders and that the clinical benefits of
MRIdian's transformative technology are fully accessible to
physicians, hospitals, and patients globally. In line with
this, we are evaluating with Goldman Sachs strategic alternatives,
including a corporate sale, merger, or other business combination.
Concurrently, we are taking steps to reduce operating expenses and
cash usage," said Scott Drake,
President and CEO of ViewRay.
Financial Results
Total revenue for the three months ended March 31, 2023 was
$22.5 million compared to
$18.9 million for the same period
last year.
Total cost of revenue for the three months ended March 31,
2023 was $24.0 million compared to
$18.8 million for the same period
last year.
Total gross loss for the three months ended March 31, 2023
was $1.4 million, compared to gross
profit of $0.1 million for the same
period last year.
Total operating expenses for the three months ended
March 31, 2023 were $28.2
million, compared to $27.6
million for the same period last year.
Net loss for the three months ended March 31, 2023 was
$28.9 million, or $(0.16) per share, compared to $25.8 million, or $(0.14) per share, for the same period last
year.
ViewRay had total cash and cash equivalents, excluding
restricted cash, of $81.3 million at
March 31, 2023.
Non-GAAP adjusted EBITDA for the three months ended
March 31, 2023 was a loss of $25.2
million, compared to a loss of $21.3
million for the same period last year. We define
adjusted EBITDA as EBITDA (defined as net income before net
interest expense, depreciation, and amortization), adjusted for
impairment of assets, non-cash equity-based compensation, non-cash
changes in warrant liability valuations, and non-recurring
costs. Refer to the schedule below for a reconciliation of
GAAP net loss (the most directly comparable GAAP measure) to
non-GAAP adjusted EBITDA.
Financial Guidance
Given the current market conditions and ongoing strategic
process, the Company is withdrawing guidance issued on February 27, 2023 and as revised on April 13, 2023.
Conference Call and Webcast
ViewRay will hold a conference call to discuss results on
Wednesday, May 10, 2023 at
4:30 p.m. ET / 1:30 p.m. PT. The dial-in number is (833)
470-1428 and the confirmation number is 133683. A live webcast of
the conference call will be available on the investor relations
page of ViewRay's corporate website at
https://investors.viewray.com/events-and-webinars.
After the live webcast, a replay will remain available online on
the investor relations page of ViewRay's website, under "Financial
Events and Webinars."
Use of Non-GAAP Financial Measures
ViewRay reports its financial results in accordance with
generally accepted accounting principles in the United States ("GAAP") and the rules of
the Securities and Exchange Commission. To supplement its financial
statements prepared and presented in accordance with GAAP, ViewRay
uses adjusted EBITDA as a non-GAAP financial measure. ViewRay has
supplemented its GAAP net loss with a non-GAAP measure of adjusted
EBITDA. We define adjusted EBITDA as EBITDA (defined as net income
before net interest expense, depreciation, and amortization),
adjusted for impairment of assets, non-cash equity-based
compensation, non-cash changes in warrant liability valuations, and
non-recurring costs. Management believes that this non-GAAP
financial measure provides useful supplemental information to
management and investors regarding the performance of the Company
and facilitates a meaningful comparison of results for current
periods with previous operating results. Management uses adjusted
EBITDA for both strategic and annual operating planning.
Adjusted EBITDA has important limitations as an analytical tool,
and you should not consider it in isolation or as a substitute for
analysis of our results as reported under GAAP. Some of these
limitations are that Adjusted EBITDA:
- does not reflect any charges for the assets being depreciated
and amortized that may need to be replaced in the future;
- does not reflect the significant interest expense or the cash
requirements necessary to service interest or, if any, principal
payments on our debt;
- does not reflect the impact of write-downs of long-lived
assets;
- does not reflect the impact of share-based compensation upon
our results of operations;
- does not reflect the impact of changes in fair value of our
warrant liabilities; and
- does not include certain expenses that are non-recurring,
infrequent and unusual in nature.
A reconciliation of GAAP net loss (the most directly comparable
GAAP measure) to non-GAAP adjusted EBITDA for the first quarter end
March 31, 2023 and 2022 is provided
in the schedules below.
About ViewRay®
ViewRay, Inc. (Nasdaq: VRAY), designs, manufactures, and markets
the MRIdian® MR-Guided Radiation Therapy System. MRIdian is built
upon a proprietary high-definition MR imaging system designed from
the ground up to address the unique challenges and clinical
workflow for advanced radiation oncology. Unlike MR systems used in
diagnostic radiology, MRIdian's high-definition MR was
purpose-built to address specific challenges, including beam
distortion, skin toxicity, and other concerns that potentially may
arise when high magnetic fields interact with radiation beams.
ViewRay and MRIdian are registered trademarks of ViewRay, Inc.
Forward-Looking Statements
This press release contains forward-looking statements within
the meaning of Section 27A of the Private Securities Litigation
Reform Act. Statements in this press release that are not purely
historical are forward-looking statements. Such forward-looking
statements include, among other things statements related to,
ViewRay's financial guidance for the full year 2023, anticipated
future orders, its consideration of strategic alternatives,
anticipated future operating and financial performance, potential
cost reductions and the effectiveness of the cost reduction
program, treatment results, therapy adoption, innovation, and the
performance of the MRIdian systems. Actual results could differ
from those projected in any forward-looking statements due to
numerous factors. Such factors include, among others, the ability
to commercialize the MRIdian Linac System, demand for ViewRay's
products, the ability to convert backlog into revenue, the timing
of delivery of ViewRay's products, the timing, length, and severity
of the COVID-19 pandemic, including its impacts across our
businesses on demand, our operations and global supply chains,
disruptions in the supply or changes in costs of raw materials,
labor, product components or transportation services, including as
a result of inflation, the results and other uncertainties
associated with clinical trials, the ability to raise the
additional funding needed to continue to pursue ViewRay's business
and product development plans, the inherent uncertainties
associated with developing new products or technologies,
competition in the industry in which ViewRay operates, overall
market conditions, ViewRay's ability to effectively reduce costs
and cash outflows, the timing of ViewRay's evaluation of strategic
alternatives, whether ViewRay will be able to identify or develop
any strategic alternatives, ViewRay's ability to execute on
material aspects of any strategic alternatives, and whether ViewRay
can achieve the potential benefits of any strategic alternatives.
For a further description of the risks and uncertainties that could
cause actual results to differ from those expressed in these
forward-looking statements, as well as risks relating to ViewRay's
business in general, see ViewRay's current and future reports filed
with the Securities and Exchange Commission, including its Annual
Report on Form 10-K for the fiscal year ended December 31, 2022 and its Quarterly Reports on
Form 10-Q, as updated periodically with the Company's other filings
with the SEC. These forward-looking statements are made as of the
date of this press release, and ViewRay assumes no obligation to
update the forward-looking statements, or to update the reasons why
actual results could differ from those projected in the
forward-looking statements, except as required by law.
VIEWRAY,
INC.
Consolidated
Statements of Operations and Comprehensive Loss
(Unaudited)
(In thousands,
except share and per share data)
|
|
|
Three Months
Ended
March 31,
|
|
2023
|
|
2022
|
Revenue:
|
|
|
|
Product
|
$
15,782
|
|
$
13,426
|
Service
|
6,519
|
|
5,331
|
Distribution
rights
|
233
|
|
119
|
Total
revenue
|
22,534
|
|
18,876
|
Cost of
revenue:
|
|
|
|
Product
|
16,939
|
|
13,766
|
Service
|
7,025
|
|
5,016
|
Total cost of
revenue
|
23,964
|
|
18,782
|
Gross profit
(loss)
|
(1,430)
|
|
94
|
Operating
expenses:
|
|
|
|
Research and
development
|
8,628
|
|
7,870
|
Selling and
marketing
|
7,991
|
|
6,884
|
General and
administrative
|
11,582
|
|
12,814
|
Total operating
expenses
|
28,201
|
|
27,568
|
Loss from
operations
|
(29,631)
|
|
(27,474)
|
Interest
income
|
1,341
|
|
5
|
Interest
expense
|
(2,626)
|
|
(1,064)
|
Other (expense) income,
net
|
2,057
|
|
2,759
|
Loss before provision
for income taxes
|
$
(28,859)
|
|
$
(25,774)
|
Provision for income
taxes
|
—
|
|
—
|
Net loss and
comprehensive loss
|
$
(28,859)
|
|
$
(25,774)
|
Net loss per share,
basic and diluted
|
$
(0.16)
|
|
$
(0.14)
|
Weighted-average common
shares used to compute net loss per share attributable to common
stockholders, basic and diluted
|
182,310,900
|
|
179,740,732
|
|
|
|
|
Gross Orders
|
$
68,250
|
|
$
40,880
|
Backlog
|
$
410,960
|
|
$
330,894
|
VIEWRAY,
INC.
Reconciliation of
GAAP Net Loss to Adjusted EBITDA
(Unaudited)
(In thousands,
except share and per share data)
|
|
|
Three Months Ended
March 31,
|
|
2023
|
|
2022
|
GAAP net
loss
|
$
(28,859)
|
|
$
(25,774)
|
Depreciation and
amortization
|
961
|
|
1,244
|
Stock-based
compensation
|
3,337
|
|
5,032
|
Interest
expense
|
2,626
|
|
1,064
|
Interest
income
|
(1,341)
|
|
(5)
|
Loss (gain) on fair
value of warrants (a)
|
(1,944)
|
|
(2,830)
|
Adjusted
EBITDA
|
(25,220)
|
|
(21,269)
|
_________________
|
(a)
|
consists of non-cash
gain/losses on our outstanding warrants.
|
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SOURCE ViewRay, Inc.