Mazor Robotics, in announcing its 3Q2012, said that ?operating and financial results reflect the growing global demand for Renaissance systems and the excellent execution of our growth strategy, particularly in the important U.S. market?
Revenue for the third quarter was $4.2 million, a 171% increase from the year-ago period of $1.5 million and a 45% sequential increase from revenue of $2.9 million. The significant revenue increase was driven mainly by the strong demand and successful installations of Renaissance systems in the United States.
Mazor Robotics Ltd. is engaged in the development of miniature semi-robotic, bone-mounted positioning systems for orthopedic procedures. The company’s Renaissance Surgical Guidance System transforms spine surgery from freehand procedure to robotic-guided procedures. The company’s products are SpineAssist, DiscAssist and the C-InSight. The company has wholly owned subsidiaries in the United States and Germany, Mazor Robotics Inc and Mazor Robotics GmbH.
During the third quarter, recurring revenue accounted for 27% of the company?s total revenue. Revenue from the U.S. comprised 80% of total revenue. The volume of Renaissance-guided spine surgery procedures, with a focus on complex spine and minimally-invasive surgery markets, continued to grow with average procedures per system, per quarter reaching 17.2, an increase of over 100% in 18 months.
Gross margin of 80% improved from 75% recorded in the second quarter 2012 and above the third quarter 2011 gross margin of 68%.
Operating expenses were $3.5 million compared to $2.8 million for the year-ago period.
Net loss for the quarter narrowed to $0.3 million or $0.01 per share, compared to a net loss of $1.7 million or $0.08 per share, reported for the third quarter 2011.
Cash, cash equivalents and short term investments for the quarter ended, September 30, 2012, was $21.2 million compared to $17.6 million on June 30, 2012. The increase in cash and cash equivalents during the quarter was due to the investment of $7.5 million from a group of institutional and accredited investors, led by Oracle Investment Management.
Mazor finalized the financing agreement that it had entered into during the third quarter, securing the first tranche of the investment of $7.5 million from a group of institutional and accredited investors, led by Oracle Investment Management, the investment management company founded by Larry Feinberg.
Third quarter sales
- In the quarter, Mazor supplied Geisinger Health System, an integrated health services organization serving more than 2.6 million residents in Pennsylvania, with a Renaissance system.
- Parker Adventist Hospital, an affiliate of the Centura Health System, the largest hospital and healthcare network in Colorado, purchased a Renaissance system.
- Southwest NeuroSpine Institute, a specialty neurosurgery practice in El Paso, Texas, installed the Renaissance system it purchased in July, 2012.
- Mazor entered India with distribution partner Advanced Medical Systems PTE Ltd, and installed a system in Apollo Hospitals Chennai, the flagship hospital of the Apollo Group, one of the largest healthcare groups in Asia with over 8500 beds across 50 hospitals.
For the nine months ended September 30, 2012
Mazor revenue totaled $9.4million, a 156% increase over the $3.7 million reported for the nine months ended September 30, 2011. Gross margin for the nine-month period was 77% compared with 66% for the prior year period. For the nine months to date, operating expenses were $9.7 million compared with $8.1 million in the year ago period. The net loss for the nine months was $2.7 million compared with $5.8 million for the comparable period of 2011.Read More