ReWalk Robotics Reports Second Quarter 2015 Financial Results
YOKNEAM ILIT,
Highlights of and subsequent to the second quarter include:
-
Total revenue was
$610,000 compared to$500,000 during the second quarter of 2014;
-
Placed 12 ReWalk systems during the second quarter of 2015 compared to 10 systems during the second quarter of 2014;
-
Received positive coverage decisions on behalf of ReWalk's customers from two large private commercial insurers for the ReWalk Personal system;
-
Increased ReWalk's commercial reimbursement pipeline to 59 fully completed pending insurance claims;
-
Received approval for continuing education credit in 22 states for ReWalk's clinician training program from the
Federation of State Boards on Physical Therapy ; and
- Introduced ReWalk Personal 6.0, ReWalk's next generation device that offers the fastest walking speed, most natural gait and most precise fit of any exoskeleton on the market.
"Although second quarter growth was slower than we expected, demand generation in terms of qualified leads and completed filings for reimbursement grew substantially. We expanded and modified our training programs to more effectively qualify users and to better assist individuals in advancing their reimbursement applications," said
"In July, we launched a significant new product, the ReWalk Personal 6.0, which offers many superior features over any product in the market or in clinical trials today. With its streamlined design, including elimination of the backpack, we expect it will increase the number of users and offer them a better walking experience," he added.
"We remain confident that the market opportunity and growth potential for ReWalk in our emerging industry is significant. And, that we will continue to expand our leadership position in wearable exoskeleton market for many years to come," Jasinski concluded.
Second Quarter 2015 Financial Results
Total revenue was
Gross profit in the second quarter was
Total operating expenses in the second quarter of 2015 were
Net loss was
A reconciliation of net loss to non-GAAP net loss is included at the end of this press release.
Six Months Ended
Total revenues were
Gross profit was
Total operating expenses were
Operating loss for the six months ended
Net loss for the six months ended
Liquidity
As of
Conference Call
ReWalk management will host its third quarter conference call as follows:
| Date | Thursday, August 6, 2015 | |
| Time | 8:30 AM EDT | |
| Telephone | U.S: | (844) 423-9889 |
| International: | (716) 247-5804 | |
| Israel: | 18 09 31 53 62 | |
| Access code | 90065491 | |
| Webcast (live and archive) | www.rewalk.com under the "Investors" section. | |
A telephone replay will be available shortly after the completion of the call for two weeks at (855) 859-2056 (U.S.) or (404) 537-3406 (International). The passcode for the replay is 90065491.
About
Forward Looking Statements
This press release contains forward-looking information within the meaning of the Private Securities Litigation Reform Act of 1995, as amended and other securities laws. Forward-looking statements are statements that are not historical facts. Words such as "expect(s)," "feel(s)," "believe(s)," "will," "may," "intends," "anticipate(s)," "look forward," "upcoming," "plan," "enables," "potentially," "entitles," and similar expressions are intended to identify forward-looking statements. These statements include, but are not limited to, statements regarding the underlying sales for the second quarter of 2015; future availability of reimbursement for ReWalk in
ReWalk® is a registered trademark of
Non-GAAP Financial Measures
To supplement its consolidated financial statements, which are prepared and presented in accordance with U.S. Generally Accepted Accounting Principles (GAAP), ReWalk believes that the use of non-GAAP accounting measures, including non-GAAP net loss is helpful to its investors. These measures, which the Company refers to as non-GAAP financial measures, are not prepared in accordance with GAAP.
For the three- and six-months ended
Because of varying available valuation methodologies, subjective assumptions, and the variety of equity instruments that can impact a company's non-cash expenses, the Company believes that providing non-GAAP financial measures that exclude share-based compensation expense and non-cash financial (income) expenses allows for more meaningful comparisons between operating results from period to period. Each of the Company's non-GAAP financial measures is an important tool for financial and operational decision-making and for evaluating our own operating results over different periods of time. The non-GAAP financial data are not measures of the Company's financial performance under U.S. GAAP, and should not be considered as alternatives to operating loss or net loss or any other performance measures derived in accordance with GAAP. Non-GAAP financial measures may not provide information that is directly comparable to that provided by other companies in the Company's industry, as other companies in the industry may calculate non-GAAP financial results differently, particularly related to non-recurring, unusual items. In addition, there are limitations in using non-GAAP financial measures because the non-GAAP financial measures are not prepared in accordance with GAAP, may be different from non-GAAP financial measures used by other companies, and exclude expenses that may have a material impact on the Company's reported financial results. Further, share-based compensation expense has been, and will continue to be for the foreseeable future, a significant recurring expense in the Company's business and an important part of the compensation provided to its employees. The presentation of non-GAAP financial information is not meant to be considered in isolation or as a substitute for the directly comparable financial measures prepared in accordance with GAAP. ReWalk urges investors to review the reconciliation of non-GAAP financial measures to the comparable GAAP financial measures included below, and not to rely on any single financial measures to evaluate the business.
(tables follow)
| ReWalk Robotics Ltd. | ||||
| Condensed Consolidated Statements of Operations | ||||
| In thousands except per share data | ||||
| (unaudited) | ||||
| Three months ended | Six months ended | |||
| June 30, | June 30, | |||
| 2015 | 2014 | 2015 | 2014 | |
| Revenue | $ 610 | $ 500 | $ 1,245 | $ 945 |
| Cost of revenues | 550 | 725 | 1,152 | 1,368 |
| Gross profit (loss) | 60 | (225) | 93 | (423) |
| Operating expenses: | ||||
| Research and development | 1,450 | 1,076 | 2,987 | 2,158 |
| Sales and marketing | 2,996 | 1,676 | 5,514 | 2,891 |
| General and administration | 1,457 | 842 | 2,956 | 1,382 |
| Total operating expenses | 5,903 | 3,594 | 11,457 | 6,431 |
| Operating loss | (5,843) | (3,819) | (11,364) | (6,854) |
| Financial income (expenses), net | 50 | (850) | (119) | (2,855) |
| Loss before income taxes | (5,793) | (4,669) | (11,483) | (9,709) |
| Income taxes | 15 | 21 | 31 | 32 |
| Net loss | (5,808) | (4,690) | (11,514) | (9,741) |
| Convertible preferred shares dividend | -- | (708) | -- | (1,395) |
| Net loss attributable to ordinary shares | $ (5,808) | $ (5,398) | $ (11,514) | $ (11,136) |
| Net loss per ordinary share, basic and diluted | $ (0.48) | $ (28.75) | $ (0.95) | $ (59.42) |
| Weighted average shares outstanding, basic and diluted | 12,125.56 | 187.78 | 12,066.95 | 187.39 |
| Reconciliation of GAAP to Non-GAAP net loss | ||||
| Net loss | $ (5,808) | $ (4,690) | $ (11,514) | $ (9,741) |
| Non-cash share based compensation expense | 585 | 230 | 1,171 | 382 |
| Revaluation of fair value of warrants and issuance of convertible preferred shares | -- | 750 | -- | 2,742 |
| Non-GAAP net loss | $ (5,223) | $ (3,710) | $ (10,343) | $ (6,617) |
| ReWalk Robotics Ltd. | ||
| Condensed Consolidated Balance Sheets | ||
| In thousands | ||
| June 30, | December 31, | |
| 2015 | 2014 | |
| Assets | Unaudited | Audited |
| Current assets | ||
| Cash & cash equivalents | $ 31,172 | $ 41,829 |
| Short-term deposits | -- | 1,667 |
| Accounts receivable | 1,517 | 1,955 |
| Other short-term assets | 1,410 | 756 |
| Inventory | 3,522 | 777 |
| Total current assets | 37,621 | 46,984 |
| Other long-term assets | 501 | 267 |
| Properties and equipment, net | 1,001 | 414 |
| Total assets | $ 39,123 | $ 47,665 |
| Liabilities and equity | ||
| Current liabilities | ||
| Accounts payable | $ 3,445 | $ 1,390 |
| Other liabilities | 1,755 | 2,184 |
| Total current liabilities | 5,200 | 3,574 |
| Other long-term liabilities | 299 | 238 |
| Shareholders' equity | 33,624 | 43,853 |
| Total liabilities and equity | $ 39,123 | $ 47,665 |
| ReWalk Robotics Ltd. | ||||
| Condensed Consolidated Statements of Cash Flows | ||||
| In thousands | ||||
| (unaudited) | ||||
| Three months ended | Six months ended | |||
| June 30, | June 30, | |||
| 2015 | 2014 | 2015 | 2014 | |
| Net cash used in operating activities | $ (5,857) | $ (3,809) | $ (12,039) | $ (7,312) |
| Net cash provided by (used in) investing activities | -- | 100 | 1,316 | (101) |
| Net cash provided by (used in) financing activities | 66 | (545) | 66 | (543) |
| Decrease in cash and cash equivalents | (5,791) | (4,254) | (10,657) | (7,956) |
| Cash and cash equivalents at beginning of period | 36,963 | 5,158 | 41,829 | 8,860 |
| Cash and cash equivalents at end of period | $ 31,172 | $ 904 | $ 31,172 | $ 904 |
| ReWalk Robotics Ltd. | ||||
| Revenue and Units Placed by Region | ||||
| In thousands except units | ||||
| (unaudited) | ||||
| Three months ended | Six months ended | |||
| June 30, | June 30, | |||
| 2015 | 2014 | 2015 | 2014 | |
| Revenue: | ||||
| United States | $ 376 | $ 157 | $ 950 | $ 486 |
| Europe | 162 | 165 | 219 | 281 |
| Asia Pacific | 72 | 178 | 76 | 178 |
| Israel | -- | -- | -- | -- |
| Total Revenue | $ 610 | $ 500 | $ 1,245 | $ 945 |
| Units Placed: | ||||
| United States | 6 | 2 | 16 | 6 |
| Europe | 4 | 3 | 7 | 5 |
| Asia Pacific | 2 | 5 | 2 | 5 |
| Israel | -- | -- | -- | -- |
| Total Units Placed | 12 | 10 | 25 | 16 |
CONTACT: Investor Contact:
Lisa M. Wilson
President
In-Site Communications, Inc.
T: 212-452-2793
E: lwilson@insitecony.com
