Conformis Reports Third Quarter 2020 Financial Results
Third Quarter 2020 Summary
- Total revenue of
$16.1 million , a decrease of 7% year-over-year on a reported and constant currency basis. - Product revenue of
$16.0 million , a decrease of 7% year-over-year on a reported and constant currency basis.
oU.S. product revenue of$14.1 million , a decrease of 7% year-over-year.
o Rest of world product revenue of$1.8 million , a decrease of 7% year-over-year on a reported basis and 10% on a constant currency basis. - Royalty revenue of
$0.1 million . - Gross margin of 48%, an increase of 360 basis points year-over-year.
- Total operating expenses increased 2% year-over-year.
"We were pleased to see a continued resumption of elective primary joint replacement surgery during the third quarter,” said
Three months ended |
Increase/(decrease) | ||||||||||||
($, in thousands) | 2020 | 2019 | $ Change |
% Change |
% Change |
||||||||
(as reported) | (constant currency) | ||||||||||||
|
$ | 14,139 | $ | 15,144 | $ | (1,005 | ) | (7 | )% | (7 | )% | ||
Rest of world | 1,836 | 1,968 | (132 | ) | (7 | )% | (10 | )% | |||||
Product revenue | 15,975 | 17,112 | (1,137 | ) | (7 | )% | (7 | )% | |||||
Royalty revenue | 146 | 191 | (45 | ) | (24 | )% | (24 | )% | |||||
Total revenue | $ | 16,121 | $ | 17,303 | $ | (1,182 | ) | (7 | )% | (7 | )% |
Third Quarter 2020 Financial Results
Total revenue for the three-month period ended
Product revenue decreased
Total gross profit increased
Total operating expenses increased
Net loss was
Cash and cash equivalents totaled
Note on Non-GAAP Financial Measures
In addition to disclosing financial measures prepared in accordance with
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Cautionary Statement Regarding Forward-Looking Statements
Statements in this press release about our future expectations, plans and prospects, including statements about the impact of the novel coronavirus (COVID-19) pandemic and the actions we are taking and planning in response, our planned launch of a new program aimed at developing a knee replacement offering targeted at hospital outpatient and ambulatory surgery centers, the anticipated timing of our product launches, whether or when restrictions on elective surgeries will be relaxed and demand for procedures will increase, and our financial position and results, total revenue, product revenue, gross margin, operations and growth, as well as other statements containing the words "anticipate," "believe," "continue," "could," "estimate," "expect," "intend," "may," "might," "plan," "potential," "predict," "project," "should," "target," "will," or "would" or the negative of these terms or other and similar expressions are intended to identify forward-looking statements within the meaning of the safe harbor provisions of The Private Securities Litigation Reform Act of 1995, although not all forward-looking statements contain these identifying words. We may not actually achieve the plans, intentions or expectations disclosed in our forward-looking statements, and you should not place undue reliance on our forward-looking statements. Actual results or events could differ materially from the plans, intentions and expectations disclosed in the forward-looking statements we make as a result of a variety of risks and uncertainties, including risks related to the novel coronavirus pandemic and the response to the pandemic; whether our cash resources will be sufficient to fund our continuing operations for the periods anticipated; risks related to our estimates and expectations regarding our revenue, gross margin, expenses, revenue growth and other results of operations, and the other risks and uncertainties described in the "Risk Factors" sections of our public filings with the
Consolidated Statements of Operations | |||||||
(unaudited) | |||||||
(in thousands, except share and per share data) | |||||||
Three Months Ended |
|||||||
2020 | 2019 | ||||||
Revenue | |||||||
Product | $ | 15,975 | $ | 17,112 | |||
Royalty and licensing | 146 | 191 | |||||
Total revenue | 16,121 | 17,303 | |||||
Cost of revenue | 8,437 | 9,675 | |||||
Gross profit | 7,684 | 7,628 | |||||
Operating expenses | |||||||
Sales and marketing | 5,755 | 6,153 | |||||
Research and development | 2,866 | 3,162 | |||||
General and administrative | 6,134 | 5,165 | |||||
Total operating expenses | 14,755 | 14,480 | |||||
Loss from operations | (7,071 | ) | (6,852 | ) | |||
Other income and expenses | |||||||
Interest income | 8 | 58 | |||||
Interest expense | (611 | ) | (573 | ) | |||
Foreign currency exchange transaction income (loss) | 1,511 | (1,313 | ) | ||||
Total other income (expenses) | 908 | (1,828 | ) | ||||
Loss before income taxes | (6,163 | ) | (8,680 | ) | |||
Income tax provision | 20 | 21 | |||||
Net loss | $ | (6,183 | ) | $ | (8,701 | ) | |
Net loss per share | |||||||
Basic and diluted | $ | (0.09 | ) | $ | (0.13 | ) | |
Weighted average common shares outstanding | |||||||
Basic and diluted | 71,224,786 | 64,750,275 |
Consolidated Balance Sheets | |||||||||||
(in thousands, except share and per share data) | |||||||||||
Assets | (unaudited) | ||||||||||
Current Assets | |||||||||||
Cash and cash equivalents | $ | 32,888 | $ | 26,394 | |||||||
Accounts receivable, net | 8,980 | 11,066 | |||||||||
Royalty and licensing receivable | 3,751 | 165 | |||||||||
Inventories, net | 12,909 | 12,074 | |||||||||
Prepaid expenses and other current assets | 2,800 | 2,815 | |||||||||
Total current assets | 61,328 | 52,514 | |||||||||
Property and equipment, net | 13,065 | 13,356 | |||||||||
Operating lease right-of-use assets | 4,977 | 5,853 | |||||||||
Other Assets | |||||||||||
Restricted cash | 462 | 462 | |||||||||
Other long-term assets | 179 | 211 | |||||||||
Total assets | $ | 80,011 | $ | 72,396 | |||||||
Liabilities and stockholder's equity | |||||||||||
Current liabilities | |||||||||||
Accounts payable | $ | 5,414 | $ | 6,920 | |||||||
Accrued expenses | 7,722 | 7,135 | |||||||||
Operating lease liabilities | 1,498 | 1,469 | |||||||||
Advance on research and development | 3,636 | 2,331 | |||||||||
Contract liability | 14,000 | — | |||||||||
Total current liabilities | 32,270 | 17,855 | |||||||||
Other long-term liabilities | — | 1,500 | |||||||||
Contract liability | — | 12,000 | |||||||||
Long-term debt, less debt issuance costs | 24,833 | 19,623 | |||||||||
Operating lease liabilities | 4,103 | 5,071 | |||||||||
Total liabilities | 61,206 | 56,049 | |||||||||
Commitments and contingencies | |||||||||||
Stockholders' equity | |||||||||||
Preferred stock, |
|||||||||||
Authorized: 5,000,000 shares authorized at |
— | — | |||||||||
Common stock, |
|||||||||||
Authorized: 200,000,000 shares authorized at |
1 | 1 | |||||||||
Additional paid-in capital | 542,986 | 521,356 | |||||||||
Accumulated deficit | (521,816 | ) | (504,145 | ) | |||||||
Accumulated other comprehensive loss | (2,366 | ) | (865 | ) | |||||||
Total stockholders' equity | 18,805 | 16,347 | |||||||||
Total liabilities and stockholders' equity | $ | 80,011 | $ | 72,396 |
CONTACT: Investor contact ir@conformis.com (781) 374-5598
Source: Conformis, Inc.