Mazor sells 25 Renaissance systems in Q4; 2015 revenue hits $26.1M: 10 key notes

Spinal Tech

Mazor reported increased revenue in the fourth quarter of 2015, as well as the full year.

Here are 10 key notes on the company's recent financial report:


1. Fourth quarter revenue hit $8.8 million, a 54 percent increase over the same period in2014. The United States-generated revenue increased to $6.7 million, higher than the $3.4 million reported for the fourth quarter in 2014.


2. Mazor sold eight Renaissance systems in the United States market during the fourth quarter, up significantly from the two sold over the same period the year before. The company received 25 Renaissance system purchase orders in 2015, a 25 percent increase over 2014.


3. International fourth quarter revenue was $2.1 million in the fourth quarter, down from $2.3 million in the same period the year prior.


4. Fourth quarter recurring revenue from system kit sales, services and other increased 40 percent to $3.5 million. The increase is mainly due to accelerated Renaissance system utilization.


5. Mazor's gross margin was 78 percent on Dec. 31, compared to 78.4 percent the year prior. Operating expenses for the fourth quarter were $9.8 million, higher than the $8 million the year prior due to increased investments in sales, marketing and research and development.


6. Mazor reported an operating loss at $2.9 million, compared to $3.5 million in the year prior for the fourth quarter. Net loss for the full year hit $15.4 million, relatively flat to the 2014 net loss.


7. Full year revenue in 2015 increased 23 percent to $26.1 million, compared with $21.2 million in 2014.


8. The full year gross margin was 77.7 percent, down from 73.9 percent for the full year of 2014.


9. The continued growth from recurring revenue represented 49 percent of the company's annual revenue. The growth is primarily due to the average number of procedures performed in the United States using the system; there are now 80 procedures per system per year, compared to 72 in 2014.


10. In the coming year, the company expects interest level in the Renaissance system to remain high and Mazor's sales force will continue to engage hospital C-suite. CEO Ori Hadomi expects another year of system sales growth in 2016.


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