First quarter new order bookings of $18.0 million resulted in an ending
backlog of $110.4 million;
Quarterly revenues of $8.2 million, up 1 percent from prior-year
Net loss narrowed to $7.9 million, or $0.15 per share;
Clinical milestones validate benefits of IMRIS' technology;
3 months ended March 31
($000s except per share amounts)
Gross profit as % of sales
Basic and diluted loss per share
1 Not Meaningful
2 Adjusted EBITDA is defined as earnings before interest income
(expense) and other, stock based compensation, gain on asset sale,
foreign exchange, embedded derivatives, income taxes and amortization
WINNIPEG AND MINNEAPOLIS, May 13, 2014 /CNW/ - IMRIS Inc. (NASDAQ: IMRS;
TSX: IM) today reported financial results for the 2014 first quarter.
All figures are reported in U.S. dollars. First quarter revenues were
$8.2 million, up approximately 1 percent from $8.1 million in the year-ago
quarter. Net loss in the 2014 first quarter improved to $7.9 million,
or $0.15 per diluted share, compared with a prior-year net loss of $8.4
million, or $0.18 per diluted share.
Commented Jay D. Miller, President and Chief Executive Officer of IMRIS:
"Revenue in the 2014 first quarter was within our guidance range and we
continued to focus on building our revenues from service contracts,
disposables and upgrades. As we have previously stated, a primary focus
in 2014 is improving order bookings performance and working to convert
qualified customer prospects to new sales orders. We are encouraged by
our strong bookings in the first quarter. We also are excited to
continue seeing great clinical data from hospitals that are using our
intraoperative imaging technology."
Among IMRIS' clinical highlights during the 2014 first quarter:
A study published in April in Neurosurgery, a peer reviewed medical
journal, validated the effectiveness of the VISIUS® intraoperative MRI,
concluding that it significantly enhances the amount of complete
resection in brain tumors and leads to better patient outcomes.
Tampa General Hospital completed initial neurosurgical cases using its
recently installed VISIUS Intraoperative MRI.
Neurosurgeons at Le Bonheur Children's Hospital in Memphis, TN,
completed their first cases using IMRIS' horseshoe headrest. This new
IMRIS product is the world's first MR-safe and CT-compatible horseshoe
headrest for the positioning of patients ranging from neonatal to adult
during neurosurgical procedures.
Neurosurgeons at Dartmouth-Hitchcock Medical Center in Lebanon, NH,
began using the VISIUS Surgical Theatre at the hospital's Center for
Surgical Innovation, which has the only operating suite in the world
with both VISIUS intraoperative MRI and CT modalities able to serve
multiple operating rooms without moving the patient.
In an example of new surgical applications being enabled by IMRIS'
technology, Cook Children's Hospital in Fort Worth, Texas, completed
its first pediatric laser ablation procedure on a brain tumor in their
VISIUS Surgical Theatre. The procedure combined the navigation
technology of the ClearPoint Neuro Intervention System with VISIUS
First-Quarter Operating Review
Revenue from VISIUS Surgical Theatre systems for the 2014 first quarter
was $5.5 million, $0.8 million lower than the same period last year,
stemming from the timing of installation and delivery activity. Revenue
from VISIUS Surgical Theatres included sales from disposables and
upgrades, which rose $0.3 million compared with the same period last
year due to expanded product offerings. Extended maintenance contract
revenue was $0.9 million higher than the year-ago period, reflecting
additional extended maintenance contracts from a larger installed base
that have transitioned off warranty to chargeable service programs.
IMRIS' net loss in the 2014 first quarter narrowed to $7.9 million, or
$0.15 per share, versus a loss of $8.4 million, or $0.18 per share in
the prior-year quarter. The improvement was chiefly due to lower
operating expenses of $2.8 million, partially offset by higher interest
and other expense of $1.0 million, unfavorable foreign exchange impact
of $0.2 million and lower gross profit of $1.1 million.
Gross profit in the 2014 first quarter was $1.9 million compared with
$3.0 million for the same period last year. Gross profit as a
percentage of sales in the 2014 first quarter was 23.6 percent compared
with 37.4 percent in the prior-year period. The company is focused on
improvement and expects to achieve full-year gross margins of
approximately 40 percent.
"Our gross margins were unacceptable in the quarter," said Miller. "The
decline from last year stemmed from trailing project completion costs
on new VISIUS iMR and MRgRT systems, coupled with the integration of
critical business processes following the relocation of certain
functions to Minnesota that will enable us to achieve greater synergies
and oversight in our customer programs and supply chain going forward.
On the positive side, the company's operating expenses dropped
Operating expenses for the 2014 first quarter declined to $8.0 million
compared with $10.8 million for the same period last year, mainly due
to lower expenses in research and development costs for robotics, MRgRT
and other ancillary research projects as those initiatives near
completion. In addition, IMRIS incurred costs of $0.8 million in the
2013 first quarter to relocate the company's operations to Minnesota.
Foreign exchange expense in the 2014 first quarter was $0.7 million
compared with $0.6 million in 2013, due to a strengthening U.S. dollar
against IMRIS' foreign denominated monetary assets. Interest and other
expense during the three months ended March 31, 2014, includes interest
expense of $0.6 million and debt discount amortization of $0.3 million,
debt issuance cost amortization of $0.1 million, as well as other net
interest expense and banking fees.
Adjusted EBITDA for the 2014 first quarter was negative $4.9 million
compared with negative $6.4 million for the same period last year.
Adjusted EBITDA for the 2014 first quarter reflects lower gross profit
and operating expenses, and higher interest expense.
During the 2014 first quarter, $18.0 million in new orders were received
and $8.2 million of backlog was converted into revenues. The change in
the U.S. dollar versus the orders denominated in foreign currencies in
backlog resulted in a slight increase in the value of the backlog.
Backlog at March 31, 2014, was $110.4 million.
Cash and restricted cash at March 31, 2014, totaled $14.7 million and
accounts receivable were $11.1 million. These funds, together with
ongoing operating cash flow, will be used to fund the company's working
capital and overall operations. At December 31, 2013, the company had
cash and restricted cash of $13.9 million.
Commented Miller: "In 2014, we will continue to execute our strategic
plans, in order to set the stage for growth in 2015 and beyond. In
addition to offering a broader product range, including a growing
disposables business, we plan to continue building momentum for our
VISIUS iCT and service sales. A key focus remains to improve our order
bookings performance and convert qualified customer prospects to new
sales orders. Concurrently, we are working to improve the company's
bottom-line performance, with an emphasis on controlling costs and
increasing gross margins. We also anticipate market excitement around
the development of our second generation SYMBIS MR and CT-compatible
The company continues to anticipate that its 2014 second quarter
revenues will be in the range of $3.5 million to $4 million, and the
strongest quarterly revenue performance will occur in the second half
Gross profit as a percentage of sales is forecast to be approximately 40
percent for the full year 2014. Quarterly gross profit as a percentage
of sales will vary depending on the underlying system installations in
each quarter. While IMRIS does not provide earnings guidance, the
Company does expect to be cash flow neutral in 2014.
Taken together, IMRIS anticipates total cash and non-cash operating
expenses in 2014 to be approximately $33 million, as summarized below:
Cash operating expenses
Stock based compensation (non-cash)
Total operating expenses
The company's cash requirements in 2014 include funding for operations,
capital investments related to robotics, iCT and MRgRT test labs, and
costs related to the U.S. relocation. Total capital expenditures in
2014 are expected to be in the range of $1.5 million to $2.5 million.
1 See "Non-GAAP Financial Measures" in the Company's 2014 First Quarter
MD&A for further information on backlog.
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 4:00 pm ET, May 13, 2014. Following management's presentation, there will be a
question-and-answer session for analysts and institutional investors.
To participate in the teleconference, please call 1-416-644-3415 or 1-877-974-0445. 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 May 20, 2014. To access the rebroadcast from
Canada please call 1-877-289-8525 or 1-416-640-1917 and enter access
code 4681231. From the U.S., please call 1-303-590-3030 or
1-800-406-7325 and enter access code 4681231.
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. The multi-room suites
incorporate diagnostic quality high-field MR, CT and angio modalities
accessed effortlessly in the operating room setting. VISIUS Surgical
Theatres serve the neurosurgical, cardiovascular, spinal and
cerebrovascular markets and have been selected by 57 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
SOURCE: IMRIS Inc.
For further information:
Executive Vice President Finance and
Administration and Chief Financial Officer