Restoration Robotics™ Reports Second Quarter 2018 Financial Results
Restoration Robotics, Inc. (NASDAQ:HAIR), today announced financial results for the second quarter ended June 30, 2018.
Second Quarter and Recent Highlights:
Launched next-generation ARTAS® iX System with implantation functionality in July 2018
Revenue of $5.5 million, compared to $5.8 million in second quarter 2017
Increased gross margins in the quarter to 54%, up from 40% in the second quarter 2017
Sold 11 ARTAS® Robotic Hair Restoration Systems worldwide
Completed $20 million loan and security agreement on May 10, 2018
Ryan Rhodes, President and Chief Executive Officer of Restoration Robotics, said, “During the quarter, we sold 11 ARTAS® Systems worldwide, increased procedure-based revenue, and increased our gross margin.”
Mr. Rhodes continued, “We also continued to expand our commercial capacity, and dedicated additional resources ahead of the launch of our next-generation ARTAS® iX System, unveiled in July. We look forward to fulfilling initial orders for ARTAS® iX Systems in the third quarter in the U.S. and anticipate receiving CE Mark approval in the EU around year-end.
As the only robotic intelligent solution to offer precise, minimally-invasive harvesting and implantation functionality in one platform, the ARTAS® iX System delivers precision, repeatability, and clinical workflow efficiencies to enhance our offering for patients and physicians further while extending our leadership position in the field of robotic hair restoration.”
Second Quarter 2018 Financial Results
Revenue in the second quarter of 2018 was $5.5 million, demonstrating 9% sequential growth from $5.0 million in first quarter 2018, and a decrease of 5% compared to $5.8 million in second quarter 2017. The year-over-year decline was driven by a decrease in system and upgrade revenues.
Gross margin for the second quarter was 54% compared to 40% in the second quarter of 2017, driven by cost efficiencies in 2018 and higher procedure-based revenue which generally provides a higher gross margin.
Operating expenses in the second quarter of 2018 were $8.1 million, a 21% increase from the $6.7 million in the second quarter of 2017. The increase reflects investments in the company’s sales and marketing initiatives, along with a higher headcount and other costs related to hiring.
Net loss for the second quarter of 2018 was $(6.2) million, or $(0.21) per share, compared with a net loss of $(5.0) million, or $(3.09) per share, for the second quarter of 2017.
Total cash, cash equivalents, and restricted cash were $17.0 million as of June 30 2018 compared to $16.6 million as of March 31, 2018. Cash, cash equivalents, and restricted cash as of June 30 2018 include proceeds from the company’s debt facility completed in May 2018. The refinancing of the Company’s debt provided an incremental $9.3 million of cash net of the repayment of its previous loan facility and costs.
Conference Call Information
Restoration Robotics will hold a conference call on Monday, July 30, 2018, at 8:30 am ET to discuss the results. The dial-in numbers are (866) 916-2179 for domestic callers and (210) 874-7716 for international callers. The conference ID is 1493305. A live webcast of the conference call will be available on the investor relations section of the Company’s website.
A replay of the call will be available starting on July 30, 2018 through August 6, 2018. To access the replay, dial (855) 859-2056 for domestic callers and (404) 537-3406 for international callers and enter access code 1493305. The webcast will be available in the investor relations section of the Company’s website for 90 days following the completion of the call.
About Restoration Robotics
Restoration Robotics, Inc., is a medical device company developing and commercializing the ARTAS™ Robotic Hair Restoration System. We believe the ARTAS System is the first and only physician-assisted system to dissect, and assist in the harvesting of, follicular units directly from the scalp and create recipient implant sites using proprietary algorithms. The Company has unique expertise in machine vision, image guidance, visual servoing and robotics, as well as developing intuitive interfaces to manage these technologies.