$15.3M net loss for Mazor in 2014, what does 2015 hold? — 10 key notes

Laura Dyrda -  

Mazor Robotics reported more systems sold and utilization growth in 2014.

"We achieved several strategic objectives in 2014 which positioned us well for 2015," said Mazor Robotics CEO Ori Hadomi. "We launched and commercially sold renaissance systems with the brain module and entered major U.S. metropolitan markets. Internationally, we received China FDA approval, secured orders for the first two commercial systems in China and expanded our presence throughout Asia."


Here are 10 things to know about the company's financial report:


1. The fourth quarter revenue was flat over the same period last year, and revenue generated in the United States decreased from $4.2 million in 2013 to $3.4 million in 2014.


2. Mazor only sold two new Renaissance systems in the United States during the fourth quarter of 2014. However, the company sold four systems internationally, compared to three sold over the same period last year.


3. The fourth quarter revenue for kit sales, services and other sources was up 32 percent to $2.5 million in the fourth quarter of 2014 from increased Renaissance system utilization.


4. The gross margin was 78.4 percent in the fourth quarter, nearly the same as it was a year ago. The total operating expenses were up to $8 million — compared to $6.6 million in the fourth quarter of 2013 — due to increased investment in sales and marketing activity.


5. The net loss for the fourth quarter was $3.7 million, up from $2 million last year. The operating loss in the fourth quarter of 2014 was $3.5 million, also up from the $2.1 million reported a year ago.


6. The full year net loss for 2014 was $15.3 million, or $0.37 per share, down from the $20.5 million reported in 2013. The change is due to the decreased financing expenses which were offset by an increase in operating expenses attributed to the continued investment in sales and marketing.


7. The full year revenue was $21.2 million, up slightly from $20 million reported in 2013.


8. The full year recurring revenue from system kit sales, services and other sources increased to $9.2 million. The revenue growth is attributable to increased utilization and additional systems installed.


9. Gross margin for the full year was 79.3 percent, compared to 78.6 percent in 2013.


10. The five main priorities for 2014 Mr. Hadomi feels will assure long term success include:


• Market footprint growth
• Increase utilization
• Raising awareness for the Renaissance system's benefits
• Deliver product enhancements
• Promote scientific data supporting the company's value proposition


"We are seeing positive trends in all of these areas, supporting my confidence that Mazor will experience growth in 2015 and beyond, with the Renaissance becoming integrated into the standard of care," said Mr. Hadomi.


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