IPO proceeds to fund expansion of IMRISneuro and product development
WINNIPEG, Nov. 14 /CNW/ - IMRIS Inc. (TSX: IM) ("IMRIS" or the "Company")
today reported its financial results for the third quarter and nine months
ended September 30, 2007.
- Significant sales growth due to increase in IMRISneuro installations
- Order backlog rose 46% year-over-year to $28.4 million
- Gross profit percentage decreased year-over-year primarily due to
establishment of demonstration sites as part of commercialization
- Net loss increased year-over-year primarily due to increased staff
levels as part of commercialization strategy
- Gross proceeds of $40 million raised from oversubscribed IPO
completed November 2, 2007
"IMRIS' strong sales and growth in our order backlog reflect our
products' increasing market acceptance," said David Graves, Chairman,
President and Chief Executive Officer. "We are also extremely pleased to have
added our first two international customers in the quarter, one in India and
one in China."
He added, "The recent completion of our IPO marks a new and exciting
phase in IMRIS' evolution. It will allow us to further the commercialization
of our IMRISneuro products and proceed with the development of additional
applications for our core technology, thereby opening new markets for the
Company. We expect that our order backlog will continue to grow as we expand
our addressable markets and secure more agreements with leading hospitals
around the world."
Selected Financial Highlights
(in CDN dollars)
Third Quarter Nine Months
Ended Sep 30 % Ended Sep 30 %
2007 2006 Change 2007 2006 Change
Sales 7,969,788 379,112 2002% 14,020,667 738,157 1799%
Profit 702,446 99,521 606% 1,797,620 149,389 1103%
Percentage 8.8% 26.3% 12.8% 20.2%
Expenses 3,928,367 2,458,342 60% 12,086,746 6,130,640 97%
(Loss) (3,459,339) (2,363,269) 46% (10,501,025) (6,181,738) 70%
ted share (0.20) (0.20) (0.59) (0.53)
Third Quarter and Nine-Month Results
Sales were $8.0 million for the third quarter and $14.0 million for the
nine-month period, representing increases of $7.6 million and $13.3 million
respectively compared to the same periods last year. These increases were
attributable to an increase in IMRISneuro system installations. During the
nine-month period, IMRIS had four systems in various phases of installation
versus one system installation having been started in the previous year.
Gross profit was $0.7 million for the third quarter and $1.8 million for
the nine-month period, representing increases of $0.6 million and $1.6 million
respectively compared to the same periods last year. These increases were
attributable to the ramp-up in system installations detailed above.
Gross profit as a percentage of sales was 8.8% for the third quarter and
12.8% for the nine-month period compared to 26.3% and 20.2% respectively for
the same periods last year. These decreases in gross profit percentage were
primarily due to discounted prices provided to two strategic customers who
have agreed to act as demonstration and visitation sites for the Company's
prospective customers, as well as a $1.0 million non-product related cost to
provide room finishes to one of these sites. These demonstration installations
include a leading adult neurological centre and a leading pediatric hospital
and will provide IMRIS with highly credible reference sites for showcasing the
Operating expenses were $3.9 million for the third quarter and
$12.1 million for the nine-month period, representing increases of $1.5
million and $6.0 million respectively compared to the same periods last year.
The increases were reflected across all major functional areas of the Company,
including administration, customer support and operations, research and
development, and sales and marketing. A substantial amount of the increases in
these departmental expenses was attributable to increased staffing levels as
the Company continues to build organizational capacity across all functional
The net loss was $3.5 million for the third quarter and $10.5 million for
the nine-month period, representing increases of $1.1 million and $4.3 million
respectively compared to the same periods last year. On a basic and diluted
share basis, the net loss was $0.20 for the third quarter and $0.59 for the
nine-month period. These compare to net losses of $0.20 and $0.53 per basic
and diluted share respectively for the same periods last year. The increases
were principally due to increased staff levels to facilitate the Company's
increased commercialization efforts.
As at September 30, 2007, IMRIS' order backlog totaled $28.4 million, an
increase of 46% from the previous year. This order backlog includes orders for
two systems that are partially installed and expected to be completed in the
fourth quarter of 2007 and six units that are scheduled for delivery in 2008.
Due to IMRIS being in an early growth stage and the high dollar value
associated with each system sale, quarter-over-quarter revenue may vary
depending on the number and nature of active projects during any given period.
However, management expects overall sales and gross margin to continue to grow
on an annualized basis due to the Company's growing order backlog.
"IMRIS' outlook is positive based on the strength of our current order
backlog as well as our order prospects," said Mr. Graves. "Our immediate
priorities are to efficiently complete customer installations on hand, convert
our promising prospects into new orders and aggressively tackle our stated
technology and market development initiatives."
The Company's full financial statements as well as management's
discussion and analysis are available at www.sedar.com and www.imris.com.
Management will host a conference call to discuss the results at 10 a.m.
ET (9 a.m. CT) on Wednesday, November 14, 2007. Following management's
presentation, there will be a question and answer session for analysts and
institutional investors. To participate in the teleconference, please call
416-644-3428 or 1-800-590-1817. To access the live audio webcast, please visit
IMRIS' website at www.imris.com. A taped rebroadcast will be available to
listeners following the call until midnight (ET) on Wednesday, November 21,
2007. To access the rebroadcast, please call 416-640-1917 or 1-877-289-8525
and enter passcode 21252722 followed by the number sign. The webcast will also
be archived on IMRIS' website.
IMRIS is a global leader in surgical imaging solutions designed to
improve patient outcomes and help them live longer and more enjoyable lives.
IMRIS' key technology benefits of high resolution MR images, improved patient
safety, enhanced surgical efficiency and increased financial viability for
hospitals contribute to a breakthrough surgical imaging offering. The
Company's lead product, IMRISneuro, has been validated by leading U.S.
neurosurgeons and is increasingly being used by world-class neuroscience
centres. IMRIS core MRI technology has multiple product applications with a
second product suite, IMRIScardio, which is under active development.
This press release may contain or refer to forward-looking information
based on current expectations. 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 circumstances.
For further information:
For further information: Ron Sabourin, Executive Vice President, Finance
and Chief Financial Officer, IMRIS Inc., Tel: (204) 480-7090, Email:
firstname.lastname@example.org; Susan McLeod, Manager, Marketing Communications, IMRIS
Inc., Tel: (204) 480-7094, Email: email@example.com