Q1 2016 Results
84% increase in sequential quarterly revenues
84% increase in sequential quarterly revenues
May 11, 2016
CAESAREA, Israel, May 11, 2016 /PRNewswire/ --
Quarterly gross loss narrowed 61% compared to Q4 2015
Net loss narrowed by 29% compared to Q4 2015
Launched Dario Blood Glucose Monitoring System in the United States late in the first quarter
Social media marketing campaign featured in Business Success Story case study on Facebook.com
Completed $8.5 million capital raise and NASDAQ uplisting
LabStyle Innovations Corp. (NASDAQ: DRIO), developer of the Dario™ Diabetes Management Solution, today reported financial and operational results for the quarter ended March 31, 2016 and provided an outlook for the coming quarters.
"We are very proud of our progress during the first quarter of 2016. Our continued growth in revenues, and the narrowing of our gross loss and net loss provide evidence of the continued adoption of the Dario, and represent an important endorsement of our user-centric approach to diabetes management from the market," said Erez Raphael, LabStyle's Chief Executive Officer. "In the first quarter, we reached a major milestone by successfully completing our public offering, increasing the Company's shareholder's equity and uplisting our stock to NASDAQ. The proceeds of this capital raise will enable us to ramp our sales and marketing initiatives in the U.S., as well as expand Dario's presence to additional strategic markets, while more effectively serving customers in our existing markets. Our mission is to bring positive change to people with diabetes around the world, while leading the growth and innovation in the digital and mHealth market. We believe we have the right product and the right strategy to succeed in these efforts and look forward to the opportunities ahead of us."
First Quarter 2016 Financial Highlights
Sequential quarterly revenues from distribution partners and customers of products and software services increased 84% from $308,000 in Q4 2015 to $568,000 in Q1 2016.
Initial online sales in the U.S.
Gross loss narrowed by 61% in Q1 2016, compared to Q4 2015
Net loss narrowed by 29% in Q1 2016, compared to Q4 2015
Shareholders' equity increased to $7.6 million at the end of Q1 compared to a shareholders' deficiency of $1.6 million and the end of Q4 2015
Completed $8.5 million capital raise and uplisted to NASDAQ
Summary of Financial Results
LabStyle's revenues for Q1 2016 totaled approximately $568,000, an 84% increase compared to approximately $308,000 in Q4 2015. This includes product sales to distributors in the United Kingdom, the Netherlands, New Zealand, Australia and Canada and initial sales in the U.S. to direct customers, as well as services provided with respect to LabStyle's patient management software platform.
GAAP gross loss decreased by approximately $157,000, or 61%, to approximately $102,000 in Q1 2016, compared to approximately $259,000 in Q4 2015.
GAAP net loss attributable to holders of common stock, as detailed in the table below, improved by approximately $483,000, or 29%, to approximately $1,189,000 in Q1 2016, compared to approximately $1,672,000 in Q4 2015.
Non-GAAP adjusted EBITDA loss in the first quarter of 2016, as detailed in the table below, improved by approximately $76,000, or 4.8%, to approximately $1,497,000 for the first quarter of 2016, compared to approximately $1,573,000 in Non-GAAP adjusted EBIDTA loss in the fourth quarter of 2015.
As of March 31, 2016 cash and cash equivalents totaled approximately $8,267,000, compared to approximately $2,671,000 at the end of 2015.
