Questions? +1 (202) 335-3939 Login
Trusted News Since 1995
A service for global professionals · Wednesday, December 12, 2018 · 470,847,503 Articles · 3+ Million Readers

Ekso Bionics Reports Third Quarter 2018 Results

RICHMOND, Calif., Nov. 07, 2018 (GLOBE NEWSWIRE) -- Ekso Bionics Holdings, Inc. (NASDAQ: EKSO), an industry leader in exoskeleton technology for medical and industrial use, today reported financial results for the three months ended September 30, 2018.

Recent Highlights and Accomplishments

  • Achieved revenues of $2.6 million for the quarter ended September 30, 2018, a 60% increase over the same quarter of 2017.
  • Gross margin expanded to approximately 42% in the third quarter of 2018 from 34% in the same period of 2017. 
  • Cash utilization decreased to $4.9 million in the third quarter of 2018 from $6.7 million in the second quarter of 2018.

“With robust quarterly year-over-year revenue growth we have already exceeded total 2017 revenue year-to-date, reflecting strong adoption and demand trends for our EksoGT™ rehabilitation units,” said Jack Peurach, President and Chief Executive Officer of Ekso Bionics. “The strong and growing enthusiasm for EksoGT in the rehabilitation market reflects our efforts to highlight the clinical and economic benefits that this innovative technology provides. Going forward, we are well-positioned to build on our sales pipeline by targeting key decision-makers and educating them on the EksoGT value proposition. Continued focus on executing our sales strategies and improving our margins will support our efforts to create value for customers, patients and shareholders.”

Third Quarter 2018 Financial Results

Revenue was $2.6 million for the quarter ended September 30, 2018, compared to $1.6 million for the quarter ended September 30, 2017.  Revenues in the third quarter of 2018 included approximately $1.7 million in medical device revenue, compared to $1.3 million in the same period in 2017, and $0.8 million in industrial sales, compared to $0.3 million in the same period in 2017.  The company shipped 16 EksoGT systems in the third quarter of 2018, including 6 rental units. This brings total placements to over 335 units, of which 33 are rentals. Third quarter shipments for 2018 represent a 45% increase over the same period in 2017.

Gross profit for the quarter ended September 30, 2018 was $1.1 million, compared to $0.5 million in the quarter ended September 30, 2017, representing a gross margin of approximately 42%. This compares to a gross margin for the same period last year of 34%. The increase was driven by expanding gross margins in EksoGT sales and rentals, as well as refinements to the company’s service business.

Sales and marketing expenses for the quarter ended September 30, 2018 were $3.1 million, compared to $3.2 million for the quarter ended September 30, 2017, a decrease of $0.1 million. This decrease was primarily due to a decrease in advertising and trade show activities.

Research and development expenses for the quarter ended September 30, 2018 were $1.3 million, compared to $2.0 million for the quarter ended September 30, 2017, a decrease of $0.7 million. This decrease was primarily due to decreased employment costs from lower headcount in the EksoWorks business unit.

General and administrative expenses for the quarter ended September 30, 2018 were $2.8 million, compared to $2.4 million for the quarter ended September 30, 2017, an increase of $0.4 million. This increase was primarily due to severance expense and stock-based compensation expense, which were partially offset by a decrease in expenses associated with business development-related activities in China.

Net loss applicable to common stockholders for the quarter ended September 30, 2018 was $7.0 million, or $0.11 per basic and diluted share, compared to $6.3 million, or $0.18 per basic and diluted share, for the quarter ended September 30, 2017.

Nine months ended September 30, 2018

Revenue for the nine months ended September 30, 2018 was $8.0 million, a 64% increase compared to $4.9 million for the same period in the prior year. Revenue in the first nine months of 2018 includes approximately $6.3 million in medical device revenue and $1.7 million in industrial sales. 

The company did not have substantial engineering services revenue for the nine months ended September 30, 2018 or the nine months ended September 30, 2017.

Gross profit for the nine months ended September 30, 2018 was approximately $2.8 million, representing a gross margin of approximately 35%. This compares to gross profit of $1.3 million for the same period last year, representing a gross margin of 26%. The increase was primarily due to the continued focus on optimizing average sales price and reducing costs through operational efficiencies.

/EIN News/ -- Sales and marketing expenses were $10.9 million for the nine months ended September 30, 2018, compared to $9.6 million for the same period in the prior year, an increase of $1.3 million.  The increase was primarily due to an increase in clinical research activity and one-time severance costs related to restructuring of the company’s marketing organization.

Research and development expenses were $4.5 million for the nine months ended September 30, 2018, compared to $7.5 million in the same period in 2017, a decrease of $3.0 million. This decrease was primarily due to lower employment costs as a result of the company-wide reduction in workforce in May 2017.

General and administrative expenses were $9.4 million for the nine months ended September 30, 2018, compared to $7.4 million in the same period in 2017.  The increase was primarily due to one-time expenses related to the departures of the former Chief Executive Officer and Chief Financial Officer as well as other nonrecurring expenses. Excluding these one-time expenses, general and administrative expenses were $7.2 million for the first nine months of 2018.

Net loss applicable to common shareholders for the nine months ended September 30, 2018 was $22.9 million, or $0.38 per basic and diluted share, compared to $20.1 million, or $0.73 per basic and diluted share, for the nine months ended September 30, 2017.

Cash on hand at September 30, 2018 was $13.0 million, compared to $27.8 million at December 31, 2017.  For the nine months ended September 30, 2018, the company used $17.0 million of cash in operations, compared to $25.6 million for the nine months ended September 30, 2017. Cash utilization in the first three quarters of 2018 continues to decrease on a sequential basis from $7.2 million in the first quarter to $6.7 million in the second quarter and to $4.9 million in the third quarter.

Conference Call

Investors interested in listening to the conference call may do so by dialing (877) 407-3036 for domestic callers or (201) 378-4919 for international callers.  A live webcast of the event will be available in the “Investors” section of the company’s website at www.eksobionics.com, or by clicking here.

A replay of the call will be available for two weeks by dialing (877) 660-6853 for domestic callers or (201) 612-7415 for international callers, using Conference ID: 13581989.  The webcast will also be available on the company’s website for one month following the completion of the call.

About Ekso Bionics®

Ekso Bionics® is a leading developer of exoskeleton solutions that amplify human potential by supporting or enhancing strength, endurance and mobility across medical and industrial applications. Founded in 2005, the company continues to build upon its unparalleled expertise to design some of the most cutting-edge, innovative wearable robots available on the market. Ekso Bionics is the only exoskeleton company to offer technologies that range from helping those with paralysis to stand up and walk, to enhancing human capabilities on job sites across the globe. The company is headquartered in the Bay Area and is listed on the Nasdaq Capital Market under the symbol EKSO. For more information, visit: www.eksobionics.com.

Forward-Looking Statements

Any statements contained in this press release that do not describe historical facts may constitute forward-looking statements. Forward-looking statements may include, without limitation, statements regarding (i) the plans and objectives of management for future operations, including plans to build on the company’s sales pipeline by targeting key decision-makers and the company’s efforts to create value for customers, patients and shareholders , (ii) the benefits of the company’s products, (iii) the Company's future financial performance, and (iv) the assumptions underlying or relating to any statement described in points (i), (ii) or (iii) above. Such forward-looking statements are not meant to predict or guarantee actual results, performance, events or circumstances and may not be realized because they are based upon the Company's current projections, plans, objectives, beliefs, expectations, estimates and assumptions and are subject to a number of risks and uncertainties and other influences, many of which the Company has no control over. Actual results and the timing of certain events and circumstances may differ materially from those described by the forward-looking statements as a result of these risks and uncertainties. Factors that may influence or contribute to the inaccuracy of the forward-looking statements or cause actual results to differ materially from expected or desired results may include, without limitation, changes resulting from the Company’s finalization of its financial statements for and as of the three and nine months ended September 30, 2018, information or new changes in facts or circumstances that may occur prior to the filing of the Company’s Quarterly Report on Form 10-Q for such period that are required to be included therein, the Company's inability to obtain adequate financing to fund the Company's operations and necessary to develop or enhance our technology, the significant length of time and resources associated with the development of the Company's products, the Company's failure to achieve broad market acceptance of the Company's products, the failure of the Company’s sales and marketing organization or partners to market the Company’s products effectively, adverse results in future clinical studies of the Company's medical device products, the failure to obtain or maintain patent protection for the Company's technology, failure to obtain or maintain regulatory approval to market the Company's medical devices, lack of product diversification, existing or increased competition, and the Company's failure to implement the Company's business plans or strategies. These and other factors are identified and described in more detail in the Company's filings with the SEC. To learn more about Ekso Bionics please visit us at www.eksobionics.com or refer to our Twitter page at @EksoBionics. The Company does not undertake to update these forward-looking statements.

Investor Contact:
David Carey
212-867-1768
investors@eksobionics.com

Media Contact:
Glenn Silver
646-871-8485
gsilver@lazarpartners.com

 
Ekso Bionics Holdings, Inc.
Condensed Consolidated Balance Sheets
(In thousands, except par value)
         
    September 30,   December 31,
    2018     2017  
Assets   (unaudited)    
Current assets:        
Cash $ 12,995   $ 27,813  
Accounts receivable, net    2,988     2,760  
Inventories, net   3,361     3,025  
Prepaid expenses and other current assets   509     1,339  
Total current assets   19,853     34,937  
Property and equipment, net   2,170     2,249  
Intangible assets, net   90     491  
Goodwill   189     189  
Other assets   121     122  
Total assets $ 22,423   $ 37,988  
Liabilities and Stockholders' Equity        
Current liabilities:        
Accounts payable   3,438     2,420  
Accrued liabilities   3,469     3,503  
Deferred revenues, current   945     1,103  
Note payable, current   2,333     2,139  
Total current liabilities   10,185     9,165  
Deferred revenue   1,535     816  
Note payable, net   3,199     4,830  
Warrant liability   1,810     1,648  
Contingent liabilities   80     81  
Other non-current liabilities   27     57  
Total liabilities   16,836     16,597  
Stockholders' equity:        
Common stock   63     60  
Additional paid-in capital   172,721     165,825  
Accumulated other comprehensive loss   (183 )   (340 )
Accumulated deficit   (167,014 )   (144,154 )
Total stockholders' equity   5,587     21,391  
Total liabilities and stockholders' equity $ 22,423   $ 37,988  
         

  

 

 
Ekso Bionics Holdings, Inc.
Condensed Consolidated Statements of Operations
(In thousands, except per share amounts)
(Unaudited)
                       
    Three months ended
September 30,
    Nine months ended
September 30,
    2018     2017     2018     2017
Revenue:                      
Device and related $ 2,533     $ 1,587     $ 8,008     $ 4,862  
Engineering services   17       10       28       38  
Total revenue   2,550       1,597       8,036       4,900  
                       
Cost of revenue:                      
Device and related   1,445       1,045       5,182       3,593  
Engineering services   22       8       35       15  
Total cost of revenue   1,467       1,053       5,217       3,608  
                       
Gross profit   1,083       544       2,819       1,292  
                       
Operating expenses:                      
Sales and marketing   3,106       3,226       10,892       9,563  
Research and development   1,282       1,986       4,479       7,491  
General and administrative   2,785       2,414       9,350       7,430  
Restructuring   -       -       -       665  
Change in fair value, contingent consideration   4       (16 )     (11 )     (191 )
Total operating expenses   7,177       7,610       24,710       24,958  
                       
Loss from operations   (6,094 )     (7,066 )     (21,891 )     (23,666 )
                       
Other income (expense), net:                      
Interest expense   (145 )     (165 )     (469 )     (482 )
Gain (loss) on warrant liability   (681 )     1,814       (162 )     4,851  
Loss on repurchase of warrants   -       (1,067 )     -       (1,067 )
Other income, net   (63 )     149       (338 )     220  
Total other income (expense), net   (889 )     731       (969 )     3,522  
                       
Net loss $ (6,983 )   $ (6,335 )   $ (22,860 )   $ (20,144 )
                       
                       
Basic and diluted net loss per share $ (0.11 )   $ (0.18 )   $ (0.38 )   $ (0.73 )
                       
Weighted average number of shares of common stock, basic and diluted   61,042       34,720       60,601       27,425  
                       

 

 

 

ekso.jpg

Powered by EIN News


EIN Presswire does not exercise editorial control over third-party content provided, uploaded, published, or distributed by users of EIN Presswire. We are a distributor, not a publisher, of 3rd party content. Such content may contain the views, opinions, statements, offers, and other material of the respective users, suppliers, participants, or authors.

Submit your press release