Mazor Robotics Announces Financial Results for the Fourth Quarter and Full Year 2012

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Mazor Robotics Announces Financial Results for the Fourth Quarter and Full Year 2012

  • Fourth quarter revenue growth of 40% contributes to strong year-over-year increase of 106% with over $12 million in revenue
  • 2012 revenue from the U.S. comprised 78% of total revenue
  • 2012 gross margin reached 76%, compared to 68% in 2011
  • Recurring revenue comprised 29% of total revenue
  • Company enters 2013 with 41 active sites globally, including 19 in the U.S., 137% increase over last year
  • Conference Call Today, Wednesday, March 20, at 10:00 AM ET

CAESAREA, Israel--(BUSINESS WIRE)-- Mazor Robotics Ltd. (TASE: MZOR), the developer of Renaissance™, an innovative surgical guidance system and its complementary products, today filed its financial statements with the Tel Aviv Stock Exchange for the fourth quarter and year ended December 31, 2012.

FOURTH QUARTER AND YEAR-END 2012 FINANCIAL REVIEW


Revenue for the fourth quarter increased 40% to $2.7 million from the year-ago period of $1.8 million. Full year revenue for 2012 was $12.2 million, more than double the revenue of $5.9 million posted in 2011. The strong revenue growth was driven mainly by the increased demand and installations of Renaissance systems in the United States and success in penetrating new global markets, particularly in Asia. At December 31, 2012, the Company had 41 active sites globally, compared to 27 in 2011.

2012 YEAR-END HIGHLIGHTS

  • 11 Renaissance systems were sold in the USA compared to 4 systems in 2011
  • Tri-City Medical Center purchased its second Renaissance system within a ten-month period of installing its first system
  • Mazor received its first Renaissance orders from its Indian, Chinese, Japanese and Vietnamese distributors further expanding its presence in the Asia Pacific region
  • Mazor finalized its financing agreement for up to $15 million with investment group led by Oracle Investment Management

"We accomplished significant operating results in 2012 and were successful in executing on our strategic growth plan," said Ori Hadomi, CEO of Mazor Robotics. "Our install base posted impressive gains, and we're thrilled with the strong momentum in the U.S., the primary market for our systems, which was the result of the investment in our sales and marketing capabilities this year. Renaissance continues to have a strong safety profile, which was highlighted in a recent study that reported an implant placement accuracy rate of 98.9% when using our system for patients with significant spinal deformities. These results strongly support our clinical value proposition which help further our marketing effort. We're beginning to receive repeat orders, such as the second system that was purchased by Tri City Medical Center just ten months after the first installation. Our financial results improved as we grew our install base and utilization rates increased. Most notably, we positioned Mazor for robust growth in 2013 by securing our financial position with a strategic round of financing, which will broaden our exposure to the U.S. capital markets. We have already entered 2013 with strong momentum, and we are excited to bring our technology to more hospitals and patients around the world."

During the fourth quarter, revenue was recognized from three system sales, one sold to a hospital in the U.S. and two systems to the Company's distributors, Adachi Medical Instruments Co. of Japan and Transmedic Pte Ltd of Vietnam. Full year revenue from the U.S. comprised 78% of total revenue. Recurring revenue from system kit sales, services and others totaled $3.5 million or 29% of total revenues.

Gross margin for the fourth quarter was 73%, similar to the year-ago period. 2012 gross margin was 76%, compared to gross margin of 68% in 2011. The growth in gross margin is due to the incremental revenue levels in 2012 compared to 2011.

Operating expenses for the fourth quarter were $3.7 million, compared to $2.9 million in the year-ago quarter. For the full year 2012, operating expenses were $13.5 million, compared to $11.7 million in 2011 due to the Company's investment in its sales and marketing capabilities. At year end, Mazor had 12 capital sales representatives and 15 clinical sales representatives in the U.S., an increase of 170% over the year-ago period. The U.S. sales force is focused on the 15 largest metropolitan regions in the country.

Net financing expenses for the fourth quarter were $2.8 million, compared to $0.2 million in the year-ago quarter, and include the appreciation of the value of the derivate instruments granted as part of the financing agreement with Oracle Investment Management. For the full year 2012, net financing expenses were $2.7 million compared to $0.1 million in 2011.

Net loss for the fourth quarter was $4.4 million, or $(0.15) per share, compared to $1.4 million, or $(0.06) per share, in the fourth quarter 2011. For the full year 2012, net loss was $7.1 million, or $(0.29) per share, compared to a net loss of $7.8 million, or $(0.36) per share, reported in 2011.

At December 31, 2012, cash, cash equivalents, and short term investments were $17 million, compared to $21.2 million on September 30, 2012. Cash, cash equivalents, and short term investments at December 31, 2011 were $16.1 million. During the quarter ended December 31, 2012, a full repayment of the Company's convertible debentures was completed in the amount of approximately $4 million.

Mr. Hadomi concluded, "We remain on track to commence trading the ADS in the U.S. market by mid-year, which we believe will broaden our shareholder base and increase liquidity."

CONFERENCE CALL INFORMATION

Mazor will hold a conference call for the investment community today, March 20, at 10:00 AM ET, and a webcast will be accessible via the Company's website. A replay of the call will be available for two weeks following the event.

Date: Wednesday, March 20, 2013
Time: 10:00 AM ET

Audio Webcast: www.mazorrobotics.com, click Investors
Live Dial-In (U.S.): 1-877-941-6009
Live Dial-In (International): 1-480-629-9818
Conference ID: 4608998

Replay Dial-In: 1-800-406-7325
Replay Access Code: 4608998

About Mazor

Mazor Robotics (TASE:MZOR) is dedicated to the development and marketing of innovative surgical robots and complementary products that provide a safer surgical environment for patients, surgeons, and operating room staff. Mazor Robotics' flagship product, Renaissance™, is a state-of-the-art surgical robotic system that enables surgeons to conduct spine surgeries in an accurate and secure manner. Mazor Robotics systems have been successfully used in the placement of over 20,000 implants in the United States and Europe. Numerous peer-reviewed publications and presentations at leading scientific conferences have validated the accuracy, usability, and clinical advantages of Mazor Robotics technology. For more information, please visit www.mazorrobotics.com.

 
Consolidated Statements of Financial Position as at December 31
     
20122011
USDUSD
thousandsthousands
 
Assets
 
Cash and cash equivalents12,7971,655
Deposits

-

1,859
Investments in marketable securities4,15612,596
Trade receivables1,1471,356
Other accounts receivable680268
Inventory1,257 1,326 
 
Total current assets20,037 19,060 
 
Prepaid lease fees6455
Deferred tax assets, net8087
Property and equipment, net766523
Intangible assets, net387 699 
 
Total non-current assets1,297 1,364 
 
Total assets21,334 20,424 
 
Current liabilities
 
Trade payables1,318996
Other accounts payable2,7061,833
Convertible debentures- 3,495 
 
Total current liabilities4,024 6,324 
 
Employee benefits199190
Liabilities to the OCS301426
Derivative liabilities in account of warrants3,990-
 
Total non-current liabilities4,490 616 
 
Total liabilities8,514 6,940 
 
Equity
Share capital7355
Share premium58,91051,122
Amounts allocated to share options5541,267
Amounts allocated to conversion option-795
Capital reserve for share-based payment transactions3,1702,787
Foreign currency translation reserve2,1192,400
Accumulated loss(52,006)(44,942)
 
Total equity12,820 13,484 
 
Total liabilities and equity21,334 20,424 
 
 
Consolidated Comprehensive Income Statements for the Year Ended December 31
     
20122011
USDUSD
thousandsthousands
 
Revenues12,1755,904
Cost of sales2,893 1,879 
 
Gross profit9,2824,025
 
Research and development expenses, net2,7603,062
Selling and marketing expenses8,8876,990
General and administrative expenses1,845 1,639 
 
Operating loss(4210)(7666)
 
Financing income925764
Financing expenses(3756)(948)
 
Financing expenses, net(2831)(184)
 
Loss before taxes on income(7041)(7850)
 
Income tax (benefit) expense23(68)
 
Loss for the year(7064)(7782)
 
Other comprehensive (loss) income:
 
Foreign currency translation differences(281)(950)
 
Total comprehensive loss for the year(7345)(8732)
 
Loss per share
 
Basic and diluted loss per share (in USD)(0.29)(0.36)
 



U.S. Contacts: EVC Group
Investors
Aimee Gordon, 212-850-6020
agordon@evcgroup.com
Robert Jones, 646-201-5447
bjones@evcgroup.com
or
Media
Chris Gale, 646-201-5431
Cgale@evcgroup.com

KEYWORDS:   United States  North America  Florida  Middle East  Israel

INDUSTRY KEYWORDS:

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