ViewRay Reports Second Quarter 2020 Results

CLEVELAND, July 30, 2020 /PRNewswire/ -- ViewRay, Inc. (Nasdaq: VRAY) today announced financial results for the second quarter ended June 30, 2020.

Second Quarter 2020 Highlights:

    --  Total revenue of $14.2 million, primarily from two revenue units,
        compared to $30.2 million, primarily from five revenue units, in the
        second quarter of 2019.
    --  Received four new orders for MRIdian systems totaling $24.6 million,
        compared to three new orders totaling $18.1 million in the second
        quarter of 2019.
    --  Total backlog was $232.2 million as of June 30, 2020, compared to $219.3
        million as of June 30, 2019.
    --  Cash and cash equivalents were $179.5 million as of June 30, 2020.
    --  Announced workforce reductions of approximately 20% as well as a program
        designed to temporarily retain select senior leaders, including Shar
        Matin, while also providing an option for them to continue with the
        Company if certain business and financial targets are achieved.

"We received four orders for MRIdian and used $10.7 million of cash in the second quarter. We are pleased with these results, the level of customer engagement in light of the challenging environment, and the significant progress to elongate our cash runway," said Scott Drake, President and CEO. "In alignment with our plan, we recently reduced our workforce by approximately 20%. We believe these are difficult but necessary decisions while our customers recover financially. We expect that the market and our business will recover and advance to its next phase of growth; however, it is difficult to predict the timeline. Importantly, we are prioritizing and budgeting increased investment in our clinical and innovation pipeline. We are excited about the advancements that lie ahead."

Three Months Ended June 30, 2020 Financial Results:

Total revenue for the three months ended June 30, 2020 was $14.2 million compared to $30.2 million for the same period last year.

Total cost of revenue for the three months ended June 30, 2020 was $15.3 million compared to $26.9 million for the same period last year.

Total gross profit (loss) for the three months ended June 30, 2020 was $(1.0) million, compared to $3.2 million for the same period last year.

Total operating expenses for the three months ended June 30, 2020 were $24.5 million, compared to $29.5 million for the same period last year.

Net loss for the three months ended June 30, 2020 was $26.2 million, or $0.18 per share, compared to $30.8 million, or $0.32 per share, for the same period last year.

ViewRay had total cash and cash equivalents of $179.5 million at June 30, 2020.

Six Months Ended June 30, 2020 Financial Results:

Total revenue for the six months ended June 30, 2020 was $28.5 million compared to $50.5 million for the same period last year.

Total cost of revenue for the six months ended June 30, 2020 was $31.6 million compared to $52.6 million for the same period last year.

Total gross profit (loss) for the six months ended June 30, 2020 was $(3.1) million, compared to $(2.1) million for the same period last year.

Total operating expenses for the six months ended June 30, 2020 were $52.5 million, compared to $54.5 million for the same period last year.

Net loss for the six months ended June 30, 2020 was $53.7 million, or $0.36 per share, compared to $64.2 million, or $0.66 per share, for the same period last year.

Conference Call and Webcast

ViewRay will hold a conference call to discuss results on Thursday, July 30, 2020 at 4:30 p.m. ET / 1:30 p.m. PT. The dial-in numbers are (844) 277-1426 for domestic callers and (336) 525-7129 for international callers. The conference ID number is 4968496. A live webcast of the conference call will be available on the investor relations page of ViewRay's corporate website at www.investors.viewray.com.

After the live webcast, a replay will remain available online on the investor relations page of ViewRay's corporate website, www.investors.viewray.com, for 14 days following the call. In addition, a telephonic replay of the call will be available until August 6, 2020. The replay dial-in numbers are (855) 859-2056 for domestic callers and (404) 537-3406 for international callers. Please use the conference ID number 4968496.

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, the rate of new orders, upgrades, and installations, ViewRay's preliminary second quarter results and anticipated future operating and financial performance, and ViewRay's conference call to discuss its second quarter 2020 results. 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 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 recent COVID-19 (coronavirus) pandemic, including its impacts across our businesses on demand, operations and our global supply chains, 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, and overall market conditions. 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, 2019 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 June
                                                                                                                                       30,                         Six Months Ended June 30,

                                                                                                                                                                                 ---

                                                                                                           2020                              2019                2020                      2019

                                                                                                                                                                                         ---


     Revenue:



     Product                                                                                                       $
            10,615                 $
           27,905                               $
            22,085      $
            46,779



     Service                                                                                                                3,490                           2,143                                          6,151                 3,434



     Distribution rights                                                                                                      119                             119                                            238                   238




     Total revenue                                                                                                         14,224                          30,167                                         28,474                50,451



     Cost of revenue:



     Product                                                                                                               12,714                          22,814                                         25,843                44,847



     Service                                                                                                                2,552                           4,107                                          5,780                 7,722




     Total cost of revenue                                                                                                 15,266                          26,921                                         31,623                52,569




     Gross margin                                                                                                         (1,042)                          3,246                                        (3,149)              (2,118)



     Operating expenses:



     Research and development                                                                                               6,211                           6,463                                         12,548                11,494



     Selling and marketing                                                                                                  3,093                           7,663                                          8,916                12,548



     General and administrative                                                                                            15,227                          15,398                                         31,015                30,507




     Total operating expenses                                                                                              24,531                          29,524                                         52,479                54,549




     Loss from operations                                                                                                (25,573)                       (26,278)                                      (55,628)             (56,667)



     Interest income                                                                                                           87                             687                                            782                   907



     Interest expense                                                                                                     (1,071)                        (1,074)                                       (2,109)              (1,833)



     Other income (expense), net                                                                                              405                         (4,133)                                         3,271               (6,566)




     Loss before provision for income taxes                                                                      $
            (26,152)              $
           (30,798)                            $
            (53,684)   $
            (64,159)



     Provision for income taxes




     Net loss and comprehensive loss                                                                             $
            (26,152)              $
           (30,798)                            $
            (53,684)   $
            (64,159)

                                                                                                                                                                                                                                   ===


     Net loss per share, basic and diluted                                                                         $
            (0.18)                $
           (0.32)                              $
            (0.36)     $
            (0.66)

                                                                                                                                                                                                                                   ===


     Weighted-average common shares used to compute net loss per                                                      147,563,278                      97,572,389                                    147,506,244            97,129,389


        share attributable to common stockholders, basic and diluted



                                                                                          
        
                VIEWRAY, INC.

                                                                                       
         
           Consolidated Balance Sheets

                                                                                           
        
                (Unaudited)

                                                                                   
     
       
            (In thousands, except share and per share data)




                                                                                                                                                  June

                                                                                                                                                       30, 2020                  December 31, 2019

                                                                                                                                                                                               ---


     
                ASSETS



     Current assets:



     Cash and cash equivalents                                                                                                                                 $
           179,514                   $
           226,783



     Accounts receivable                                                                                                                                               22,089                             16,817



     Inventory                                                                                                                                                         48,197                             55,031



     Deposits on purchased inventory                                                                                                                                    4,643                              6,457



     Deferred cost of revenue                                                                                                                                           6,273                              3,466



     Prepaid expenses and other current assets                                                                                                                          5,568                              3,310




     Total current assets                                                                                                                                             266,284                            311,864



     Property and equipment, net                                                                                                                                       22,718                             23,399



     Restricted cash                                                                                                                                                    1,860                              1,404



     Intangible assets, net                                                                                                                                                53                                 55



     Right-of-use assets                                                                                                                                               10,621                             11,720



     Other assets                                                                                                                                                       1,642                              1,577




     TOTAL ASSETS                                                                                                                                              $
           303,178                   $
           350,019

                                                                                                                                                                                                               ===


     
                LIABILITIES AND STOCKHOLDERS
                '
                 EQUITY



     Current liabilities:



     Accounts payable                                                                                                                                            $
           4,852                    $
           13,739



     Accrued liabilities                                                                                                                                               17,361                             21,390



     Customer deposits                                                                                                                                                 16,047                              9,662



     Operating lease liability, current                                                                                                                                 2,347                              2,264



     Current portion of long-term debt                                                                                                                                 10,889                              1,556



     Deferred revenue, current                                                                                                                                         16,788                             10,457




     Total current liabilities                                                                                                                                         68,284                             59,068



     Deferred revenue, net of current portion                                                                                                                           3,069                              3,553



     Long-term debt                                                                                                                                                    44,756                             53,995



     Warrant liabilities                                                                                                                                                2,072                              5,373



     Operating lease liability, noncurrent                                                                                                                              9,293                             10,479



     Other long-term liabilities                                                                                                                                        1,680                              1,377




     TOTAL LIABILITIES                                                                                                                                                129,154                            133,845




     Commitments and contingencies (Note 6)



     Stockholders' equity:



     Preferred stock, par value of $0.01 per share; 10,000,000 shares authorized

        at June 30, 2020 and December 31, 2019; no shares issued and outstanding

        at June 30, 2020 and December 31, 2019



     Common stock, par value of $0.01 per share; 300,000,000 shares authorized at                                                                                       1,466                              1,462

        June 30, 2020 and December 31, 2019; 147,616,373 and 147,191,695 shares

        issued and outstanding at June 30, 2020 and December 31, 2019



     Additional paid-in capital                                                                                                                                       745,418                            733,888



     Accumulated deficit                                                                                                                                            (572,860)                         (519,176)




     TOTAL STOCKHOLDERS' EQUITY                                                                                                                                       174,024                            216,174




     TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY                                                                                                                $
           303,178                   $
           350,019

                                                                                                                                                                                                               ===

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SOURCE ViewRay, Inc.