Toronto, Ontario – July 27, 2016 –
NOVADAQ Technologies Inc. (“NOVADAQ” or the “Company”) (NASDAQ:NVDQ; TSX:NDQ), the leading developer and provider of clinically relevant fluorescence imaging solutions for use in surgical and diagnostic procedures, today announced financial results for its second quarter ended June 30, 2016. Unless otherwise indicated, all dollar amounts in this press release are expressed in United States (“U.S.”) dollars.
For the three months ended June 30, 2016, NOVADAQ reported revenues of $20.1 million, an increase of 34% from $15.1 million in the second quarter of 2015. Total direct sales increased by $4.4 million, or 37%, and total Partnered/International sales increased by $0.6 million, or 21%, compared to Q2-2015.
The following table sets out certain supplemental quarterly revenue and installed base metrics to assist investors in following the Company’s progress over time:
The Company estimates that the number of procedures performed using SPY technology systems during the second quarter was approximately 13,300 representing an increase of 39% year-over-year and 8% sequentially over the previous quarter.
Second quarter gross profits rose to $14.5 million (72% margin) compared to gross profits of $10.7 million (71%) in the same period last year.
Net loss for the second quarter of 2016 was $16.5 million, or $0.29 basic loss per share, compared with net loss of $6.0 million, or $0.11 basic loss per share, in Q2-2015. The increase in net loss was primarily a result of an increase in operating expenses of $8.0 million, which included approximately $4.0 million of expenses associated with the departure of the Company’s former CEO, and the non-cash warrant revaluation income of $6.3 recognized in Q2-2015. Offsetting these amounts was an increase in gross profit of $3.8 million.
Second quarter 2016 operating burn (cash consumed by operating activities before changes in working capital) was $10.1 million compared to $8.7 million in the second quarter of 2015. The cash burn in Q2-2016 included $1.9 of cash separation costs. Without such costs, the cash burn in Q2-2016 would have been $8.2 million, or slightly lower than it was in Q2-2015. During Q2-2016, non-cash working capital decreased by $0.6 million.
Cash and cash equivalents were $84.0 million at June 30, 2016, reflecting a decrease of $12.6 million compared to the cash position as at March 31, 2016.
“The positive sales momentum we established early this year successfully carried into Q2, which was marked by the continued strong growth of both our capital sales and recurring revenue,” commented Rick Mangat, NOVADAQ’s President and Chief Executive Officer. “I am pleased that we maintained our steady and robust growth trajectory, and am very optimistic about our performance in the second half of 2016.”
Conference Call Details
NOVADAQ is pleased to invite all interested parties to participate in a conference call today, July 27, 2016 at 4:30 p.m. Eastern Time, during which the results will be discussed.
Those wishing to access the live conference call by telephone should dial 1-877-407-8031 (Canada and the United States) or 1-201-689-8031 (International) several minutes prior to the beginning of the call.
A replay of the conference call can be accessed by dialing 1-877-660-6853 (Canada and the United States) or 1-201-612-7415 (International) and entering the conference identification number 13641209 when prompted.
The call will also be archived for 90 days on the Company’s website at novadaq.com under the “Events” tab in the Investor’s section. A replay of the call will be available for download to a portable audio player or computer, as an MP3 or podcast file, at the same location on NOVADAQ’s website.
About Novadaq Technologies Inc:
Enabling medical professionals with clinically relevant, point-of-care imaging solutions to enhance the lives of patients and their caregivers, while reducing health care costs, is NOVADAQ’s global mission. SPY fluorescence imaging technology provides surgeons with real-time visualization, leading to improved outcomes and reduced costs without exposing the patient to radiation. More than 200 peer-reviewed publications demonstrate that the use of SPY imaging technologies during complex surgery and diagnostic procedures, leads to lower rates of post-operative complications and lower hospital costs.
SPY Imaging Systems are United States Food and Drug Administration 510(k) cleared for use in seven surgical specialties. The endoscopic version of SPY called PINPOINT, combines the capabilities of SPY Imaging with high definition (“HD”) visible light visualization offered by conventional endoscopes. LUNA is used to assess perfusion in patients being treated for non-healing wounds. In December 2014, NOVADAQ and LifeNet Health jointly announced the signing of a multi-year agreement appointing NOVADAQ the exclusive worldwide distributor of LifeNet Health’s DermACELL acellular tissue products for wound and breast reconstruction surgery.
Forward Looking Statement:
Certain statements included in this press release may be considered forward-looking. 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, and therefore these statements should not be read as guarantees of future performance or results. All forward-looking statements are based on NOVADAQ’s current beliefs as well as assumptions made by and information currently available to NOVADAQ and relate to, among other things, the Company’s strategy, strategic goals, research and development activities, research and clinical testing outcomes, taxes, capital expenditures, future operations, future financial position, future revenues/results, projected costs, prospects and plans and objectives of management.
Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date of this press release. Due to risks and uncertainties, including the risks and uncertainties identified by NOVADAQ in its public securities filings available at www.sec.gov andwww.sedar.com, actual events may differ materially from current expectations. NOVADAQ disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.
NOVADAQ, SPY, PINPOINT and LUNA are registered trademarks of Novadaq Technologies Inc. DermACELL is a registered trademark of LifeNet Health.