UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d)
of the Securities Exchange Act of 1934
Date of Report (Date of earliest event reported): May 13, 2016
VIEWRAY, INC.
(Exact name of registrant as specified in its charter)
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Delaware |
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001-37725 |
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42-1777485 |
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(State or Other Jurisdiction of Incorporation) |
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(Commission File Number) |
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(I.R.S. Employer Identification Number) |
2 Thermo Fisher Way
Oakwood Village, Ohio 44146
(Address of principal executive offices, including zip code)
(440) 703-3210
(Registrant’s telephone number, including area code)
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):
¨Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
¨Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
¨Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
¨Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
On May 13, 2016, ViewRay, Inc. issued a press release announcing its financial results for the fiscal quarter ended March 31, 2016. The press release is attached hereto as Exhibit 99.1.
The information in this Item 2.02 of this Current Report on Form 8-K and the Exhibit 99.1 attached hereto shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or otherwise subject to the liabilities of that Section or Sections 11 and 12(a)(2) of the Securities Act of 1933, as amended (the “Securities Act”), or incorporated by reference in any filing of ViewRay, Inc. under the Securities Act or the Exchange Act, whether made before or after the date hereof, regardless of any general incorporation language in such filing.
Item 7.01Regulation FD Disclosure.
The information set forth under Item 2.02 of this Current Report on Form 8-K is incorporated by reference into this Item 7.01.
The information in this Item 7.01 of this Current Report on Form 8-K and the Exhibit 99.1 attached hereto shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or otherwise subject to the liabilities of that Section or Sections 11 and 12(a)(2) of the Securities Act of 1933, as amended (the “Securities Act”), or incorporated by reference in any filing of ViewRay, Inc. under the Securities Act or the Exchange Act, whether made before or after the date hereof, regardless of any general incorporation language in such filing.
Item 9.01Financial Statements and Exhibits.
(d) Exhibits.
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ExhibitNumber |
Description |
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99.1 |
Press Release dated May 13, 2016. |
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
VIEWRAY, INC.
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Dated: May 13, 2016 |
By:/s/ Chris A. Raanes |
EXHIBIT INDEX
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ExhibitNumber |
Description |
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99.1 |
Press Release dated May 13, 2016. |
Exhibit 99.1
ViewRay Reports First Quarter 2016 Financial Results
Highlights:
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First quarter revenue of $5.5 million |
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Six MRIdian systems installed as of March 31, 2016 |
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First quarter new product orders of $11.2 million |
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Total backlog of $89.6 million, representing 16 signed sales contracts, as of March 31, 2016 |
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On track with development of linear accelerator (linac)-based radiotherapy technology |
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Began trading on the NASDAQ Global Market on March 31, 2016 |
CLEVELAND, May 13, 2016 — ViewRay, Inc. (Nasdaq: VRAY) today announced financial results for the first quarter ended March 31, 2016.
“Momentum in our business continues to grow with the announcement that we plan to file for regulatory approval of our exciting new MRIdian linac technology in the second half of the year,” said Chris A. Raanes, President and Chief Executive Officer of ViewRay, “We signed two new orders increasing our backlog to $89.6 million representing 16 signed sales contracts, installed a MRIdian system at VUmc in Amsterdam and expanded our pipeline of potential new customers interested in our linac technology.”
Financial Results
Total revenue in the first quarter of 2016 was $5.5 million, as ViewRay recognized product revenue on the MRIdian system installed at the VU University Medical Center (VUmc) in Amsterdam, compared to $0.3 million in the first quarter of 2015.
Cost of product revenue was $5.9 million in the first quarter of 2016, compared to $0.2 million in the first quarter of 2015. Cost of product revenue in the first quarter of 2016 represents the installation at VUmc. Total gross profit (loss) in the first quarter of 2016 was $(1.1) million, compared to $(0.5) million in the first quarter of 2015.
Total operating expenses in the first quarter of 2016 were $11.0 million, compared to $7.5 million in the first quarter of 2015, primarily due to increased investments in linac technology development and public company related expenses.
Net loss in the first quarter of 2016 was $(13.4) million, or $(0.35) per share, compared to $(8.5) million, or $(9.27) per share in the first quarter of 2015.
ViewRay had total cash and cash equivalents of $5.7 million at March 31, 2016. In March 2016, ViewRay amended its Term Loan Agreement with Capital Royalty Partners (CRG), making $15.0 million of borrowing capacity available at ViewRay’s option and an additional $5.0 million in borrowing capacity available upon meeting future revenue milestones. In April 2016, ViewRay notified CRG of its intent to borrow the additional $15.0 million in funds. The Company received $5.0 million in early May with the remaining $10.0 million expected on or about May 20th.
Conference Call and Webcast
ViewRay will hold a conference call on Friday, May 13, 2016 at 8:30 a.m. ET / 5:30 a.m. PT to discuss the results. The dial-in numbers are 844-277-1426 for domestic callers and 336-525-7129 for international callers. The conference ID number is 7854854. A live webcast of the conference call will be available here or from the investor relations page of ViewRay’s corporate website at www.viewray.com.
After the live webcast, a replay of the webcast will remain available online from the investor relations page of ViewRay’s corporate website, www.viewray.com, through May 17, 2017. In addition, a telephonic replay of the call will be available until May 20, 2016. The replay dial-in numbers are 855-859-2056 for domestic callers and 404-537-3406 for international callers. Please use the replay pin number 7854854.
Exhibit 99.1
ViewRay®, Inc. (Nasdaq: VRAY), designs, manufactures and markets the MRIdian® radiation therapy system. MRIdian integrates MRI technology, radiation delivery and proprietary software to locate, target and track the position and shape of soft-tissue tumors during radiation. ViewRay believes this combination of enhanced visualization and accuracy will significantly improve outcomes for patients.
ViewRay and MRIdian are registered trademarks of ViewRay, Inc.
Forward Looking Statements:
This press release contains forward-looking statements. Statements in this press release that are not purely historical are forward-looking statements. Such forward-looking statements include, among other things, references to filing for regulatory approval of ViewRay’s MRIdian linac technology in the second half of the year, receipt of borrowings from CRG and ViewRay’s conference call to discuss its first quarter 2016 financial results. Actual results could differ from those projected in any forward-looking statements due to numerous factors. Such factors include, among others, the ability to raise the additional funding needed to continue to pursue ViewRay’s business and product development plans, the inherent uncertainties associated with developing new products or technologies, the ability to commercialize MRIdian linac technology, competition in the industry in which ViewRay operates and overall market conditions. These forward-looking statements are made as of the date of this press release, and ViewRay assumes no obligation to update the forward-looking statements, or to update the reasons why actual results could differ from those projected in the forward-looking statements, except as required by law. Investors should consult all of the information set forth herein and should also refer to the risk factor disclosure set forth in the reports and other documents ViewRay files with the SEC available at www.sec.gov.
Contact:
Investor Relations:
David Chandler
Chief Financial Officer
1-844-MRIdian (674-3426)
Media Enquiries:
Michael Saracen
Senior Director, Marketing
ViewRay, Inc.
Phone: +1 440.703.3210, ext. 200
Email: media@viewray.com
Exhibit 99.1
Condensed Consolidated Statements of Operations
(In thousands, except share and per share data)
(Unaudited)
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Three Months Ended March 31, |
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2016 |
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2015 |
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Gross Orders |
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$ |
11,180 |
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$ |
17,200 |
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Backlog |
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$ |
89,640 |
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$ |
71,860 |
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Revenue: |
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Product |
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$ |
5,240 |
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$ |
99 |
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Service |
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216 |
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181 |
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Total revenue |
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5,456 |
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280 |
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Cost of revenue: |
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Product |
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5,927 |
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154 |
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Service |
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601 |
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623 |
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Total cost of revenue |
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6,528 |
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777 |
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Gross margin |
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(1,072 |
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(497 |
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Operating expenses: |
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Research and development |
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3,399 |
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2,248 |
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Selling and marketing |
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1,279 |
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964 |
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General and administrative |
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6,320 |
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4,323 |
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Total operating expenses |
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10,998 |
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7,535 |
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Loss from operations |
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(12,070 |
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(8,032 |
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Interest income |
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1 |
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1 |
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Interest expense |
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(1,082 |
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(484 |
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Other income (expense), net |
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(217 |
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60 |
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Loss before provision for income taxes |
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$ |
(13,368 |
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$ |
(8,455 |
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Provision for income taxes |
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— |
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— |
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Net loss attributable to common stockholders |
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$ |
(13,368 |
) |
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$ |
(8,455 |
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Net loss per share attributable to common stockholders, basic and diluted |
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$ |
(0.35 |
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$ |
(9.27 |
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Weighted-average common shares used to compute net loss per share attributable to common stockholders, basic and diluted |
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38,211,439 |
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911,922 |
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Exhibit 99.1
Condensed Consolidated Balance Sheets
(In thousands)
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March 31, 2016 |
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December 31, 2015 (1) |
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(Unaudited) |
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ASSETS |
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Current assets: |
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Cash and cash equivalents |
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$ |
5,729 |
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$ |
20,667 |
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Accounts receivable |
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— |
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830 |
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Inventory |
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11,916 |
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8,073 |
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Deposits on purchased inventory |
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3,552 |
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3,936 |
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Deferred cost of revenue |
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3,895 |
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8,782 |
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Prepaid expenses and other current assets |
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1,371 |
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1,329 |
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Total current assets |
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26,463 |
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43,617 |
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Property and equipment, net |
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11,413 |
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7,306 |
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Restricted cash |
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943 |
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943 |
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Intangible assets, net |
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154 |
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200 |
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Other assets |
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92 |
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91 |
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TOTAL ASSETS |
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$ |
39,065 |
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$ |
52,157 |
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LIABILITIES AND STOCKHOLDERS’ DEFICIT |
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Current liabilities: |
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Accounts payable |
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$ |
6,655 |
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$ |
4,358 |
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Accrued liabilities |
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5,109 |
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5,413 |
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Customer deposits |
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9,390 |
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12,763 |
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Deferred revenue, current portion |
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5,889 |
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5,616 |
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Total current liabilities |
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27,043 |
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28,150 |
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Long-term debt |
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29,091 |
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29,016 |
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Deferred revenue, net of current portion |
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429 |
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345 |
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Other long-term liabilities |
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2,263 |
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1,603 |
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TOTAL LIABILITIES |
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58,826 |
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59,114 |
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Commitments and contingencies |
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Preferred stock, par value $0.01 per share; 10,000,000 shares authorized at March 31, 2016 (unaudited) and December 31, 2015; no shares issued and outstanding at March 31, 2016 (unaudited) and December 31, 2015 |
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— |
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— |
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Stockholders’ deficit: |
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Common stock, par value of $0.01 per share; 300,000,000 shares authorized at March 31, 2016 (unaudited) and December 31, 2015; 38,216,523 and 38,204,960 shares issued and outstanding at March 31, 2016 (unaudited) and December 31, 2015 |
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372 |
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372 |
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Additional paid-in capital |
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190,276 |
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189,712 |
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Accumulated deficit |
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(210,409 |
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(197,041 |
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TOTAL STOCKHOLDERS’ DEFICIT |
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(19,761 |
) |
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(6,957 |
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TOTAL LIABILITIES AND STOCKHOLDERS’ DEFICIT |
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$ |
39,065 |
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$ |
52,157 |
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(1) |
The condensed consolidated balance sheet as of December 31, 2015 was derived from audited financial statements as of that date. |