WINNIPEG, May 2, 2013 /CNW/ - IMRIS Inc. (NASDAQ: IMRS; TSX: IM)
("IMRIS" or the "Company") today reported its results for the first
quarter of 2013. All figures are reported in US dollars. Revenues were
$8.1 million in the quarter compared with $3.5 million in the first quarter
of 2012. Net loss in the first quarter was $8.4 million, largely
unchanged from the first quarter of 2012.
Quarterly revenues increase by 131% to $8.1 million
VISIUS® iCT exhibited at American Association of Neurological Surgeons
Annual Scientific Meeting
Strengthened working capital position with $20.1 million public offering
of common shares
($000's except per share amounts)
3 months ended Mar 31 (unaudited)
Gross profit as % of sales
Basic and diluted loss per share
Cash & accounts receivable
Total revenues increased by 131% to $8.1 million in the first quarter of
2013 compared with $3.5 million in the first quarter of 2012. VISIUS
Surgical Theatre delivery activities increased over the same period in
2012 resulting in a $3.8 million increase in system revenue compared to
the same quarter in 2012. Also contributing to the improvement in first
quarter results were service contract revenues which increased 71% to
$1.8 million as a result of an increase in the installed base of VISIUS
Surgical Theatres which have transitioned from warranty to service
Gross profit was $3.0 million in the first quarter compared with $1.4
million in Q1 2012. The first quarter 2013 gross profit as a percentage
of sales was 37.4% compared to 39.9% in Q1 2012. The higher
year-over-year gross profit performance in the first quarter was
attributable to increased installations partly offset by lower margined
system installation and lower service margins in the period. Gross
profit as a percentage of sales is expected to continue to vary based
on the underlying installations in each quarter, with full year 2013
performance expected to be in excess of 40%.
Operating expenses continue to focus on investment to grow the business.
Operating expenses for the three months ended March 31, 2013 were $10.8
million, an increase of $0.9 million or 9% over the same period in
2012. The increase is primarily due to additional one-time costs
related to the relocation of the Company to Minnesota of $0.8 million,
and increased employee costs, offset by lower expense in research and
development costs for robotics, MR-guided radiation therapy and other
ancillary research projects. The relocation costs consist of recruiting
of $0.3 million, retention and severance costs of $0.2 million, and
travel, professional fees and other expenses of $0.3 million. The
increased employee-related costs from the prior year included the
addition of new customer support staff and three senior executives in
operations, customer service and the Company's Chief Operating
Officer. Amortization was largely unchanged from a year earlier at
Adjusted EBITDA and Operating Loss
Adjusted EBITDA in the first quarter of 2013 was negative $6.4 million
compared with negative $7.2 million in the first quarter of 2012. The
year over year improvement reflects higher gross profit, partly offset
by higher operating expenses, including the one-time relocation costs.
Operating loss was $8.4 million in the first quarter of 2013 compared
with $8.3 million in the first quarter of 2012. The marginal increase
in operating loss reflects an improvement in adjusted EBITDA offset by
foreign exchange losses and interest expense in 2013 versus interest
income and a foreign exchange gain in Q1 2012.
Net loss for the first quarter of 2013 was largely unchanged at $8.4
million. The marginally higher net losses in the first quarter of 2013
reflect increased operating expenses and foreign exchanges losses,
offset by higher gross profit arising from increased installation
activity in Q1 2013.
Liquidity and Capital Resources
Cash at March 31, 2013 totaled $27.1 million. In addition, the Company
had accounts receivable of $3.7 million. These funds, together with
ongoing operating cash flow, will be used to fund the Company's working
capital and general corporate purposes.
During the first quarter of 2013, $1.0 million in new orders were
received and $8.1 million of backlog was converted into revenues. The
change in the US dollar versus the foreign currencies of the orders in
backlog resulted in a marginal increase in the value of the backlog.
Backlog at March 31, 2013 was $115.5 million and comprised of $63.1
million of system orders and $52.4 million in service contracts.
IMRIS Exhibits Novel VISIUS® iCT at AANS - At the recent American Association of Neurological Surgeons (AANS) Annual
Scientific Meeting in New Orleans, IMRIS exhibited its novel
intraoperative CT solution that allows for a CT scanner to move
on-demand using ceiling-mounted rails for effortless access in the OR
without patient transport for imaging. The VISIUS iCT is pending US
FDA 510(k) approval and is not available for sale in any market.
IMRIS Completes $20.1 Million Public Offering of Common Shares - On March 18, 2013, the Company closed its underwritten public
offering of 5,750,000 common shares at a public offering price of
US$3.50 per share for gross proceeds of approximately US$20.1 million.
IMRIS intends to use the net proceeds from this offering for working
capital and general corporate purposes, including commercialization
activities of new products, research and development programs and
working capital needs.
For 2013, the Company's expectation is for another year of improved
order bookings, with the strongest performance coming from the United
States and the Asia-Pacific markets. Annual revenues, comprised of
both systems and service, are expected to be in the range of $65
million. IMRIS's quarterly revenue profile varies depending on the
underlying system installations in each period. Q2 2013 revenues are
expected to be in the $9 million to $10 million range. Similar to prior
years, the Company expects that the strongest quarterly revenue
performance will once again occur in the second half of 2013.
Strong increases in gross profit are expected in 2013, including
significantly higher gross profit as a percentage of sales, which is
forecast to be above 40% for the year. Quarterly gross profit as a
percentage of sales will vary depending on the underlying system
installations in the respective quarters.
Carefully managing expenses is a priority in 2013, and departmental cash
operating expenses are targeted to decrease by $4 million from 2012
levels to approximately $34 million. Taken together, total cash and
non-cash operating expenses in 2013 are expected to be approximately
$51 million, as summarized in the table below:
Cash operating expenses
Minneapolis relocation costs
Research & Development charge
Research & Development charge (non-cash)
Stock Based Compensation (non-cash)
Total operating expenses
Cash requirements in 2013 include funding for operations, capital
investments related to robotics, VISIUS iCT and MRgRT test labs, the
costs related to the U.S. relocation and prepaid development costs
associated with collaborative arrangements. Total capital
expenditures for the year are expected to be in the range of $6 million
to $8 million this year.
The Company's full financial statements as well as management's
discussion and analysis will be available at www.sedar.com, www.sec.gov and www.imris.com.
Management will host a conference call to discuss the results at 5:00 pm ET today, May 2, 2013. Following management's presentation, there will be a
question-and-answer session for analysts and institutional investors.
To participate in the teleconference, please call 416-644-3416 or 800-814-4860. To access the live audio webcast, please visit IMRIS's website at www.imris.com. A taped rebroadcast will be available to listeners following the call
until midnight (ET) on May 9, 2013. To access the rebroadcast, please
call 416-640-1917 or 877-289-8525 and enter passcode 4615854#. The
webcast will also be archived on IMRIS's website.
IMRIS (NASDAQ: IMRS; TSX: IM) is a global leader in providing image
guided therapy solutions through its VISIUS Surgical Theatre - a
revolutionary, multifunctional surgical environment that provides
unmatched intraoperative vision to clinicians to assist in decision
making and enhance precision in treatment. VISIUS Surgical Theatres
serve the neurosurgical, cardiovascular and cerebrovascular markets and
have been selected by leading medical institutions around the world.
For more information, visit www.imris.com.
This press release may contain or refer to forward-looking information
based on current expectations. In some cases, forward-looking
statements can be identified by terminology such as "anticipate",
"may", "expect", "believe", "prospective", "continue" or the negative
of these terms or other similar expressions concerning matters that are
not historical facts. These statements should not be understood as
guarantees of future performance or results. Such statements involve
known and unknown risks, uncertainties and other factors that may cause
actual results, performance or achievements to be materially different
from those implied by such statements. Although such statements are
based on management's reasonable assumptions, there can be no assurance
that actual results will be consistent with such statements.
Forward-looking statements are subject to significant risks and
uncertainties, and other factors that could cause actual results to
differ materially from expected results. These forward-looking
statements are made as of the date hereof and we assume no
responsibility to update or revise them to reflect new events or
1 Not meaningful.
2 Adjusted EBITDA is defined as earnings before interest income, stock
based compensation, gain on asset sale, foreign exchange, embedded
derivatives, income taxes, and amortization.
3 See "Non-GAAP Financial Measures" in the Company's Q1 2013 MD&A for
further information on backlog.
PDF available at: http://stream1.newswire.ca/media/2013/05/02/20130502_C3039_DOC_EN_26291.pdf
PDF available at: http://stream1.newswire.ca/media/2013/05/02/20130502_C3039_DOC_EN_26290.pdf
SOURCE: IMRIS Inc.
For further information:
Executive Vice President Finance and
Administration and Chief Financial Officer
Director Investor Relations
& Corporate Communications