ReWalk Robotics Reports Third Quarter 2017 Financial Results
-- 24% YOY growth in Q3 revenue to $1.7 million --
-- Coverage allowed by DGUV and Barmer in Germany of ReWalk personal devices --
ReWalk Robotics Ltd. (Nasdaq:RWLK) (“ReWalk” or “the Company”) today announced its financial results for the three- and nine-month periods ended September 30, 2017.
Highlights of and subsequent to the third quarter include:
Revenues grew 24% to $1.7 million and 46% to $6.2 million for the three and nine months ended September 30, 2017, respectively, compared to revenues of $1.4 million and $4.3 million for the three- and nine-months ended September 30, 2016, respectively;
Placed 16 and 84 units during the three and nine months ended September 30, 2017, respectively, compared to 23 and 80 units during the three and nine months ended September 30, 2016, respectively. An additional eight previously rented units converted to sales during the quarter;
Secured seven favorable commercial insurance coverage decisions;
Increased pending insurance claims to 218 in the U.S. and Germany, as of September 30, 2017, compared to 149 as of the end of the prior year period;
Positive reimbursement determinations made in Germany by DGUV, a social accident insurance provider, and Barmer, a national social health insurance provider, for the ReWalk Personal device, to provide insurance coverage on a case-by-case basis to all qualifying beneficiaries; and
Completed critical design review processes and began the pre-clinical testing of the Restore lightweight soft-exosuit base design in preparation for a prospective clinical study and eventual commercialization of an initial indication designed for stroke patients.
“Our business continues to deliver year over year growth as we focus on advancing our key initiatives including insurance reimbursement coverage for the ReWalk Personal device and progressing our innovative soft suit exoskeleton technology, the Restore, designed for individuals who experienced a stroke. We view the Restore system as a platform technology which we believe has significant applications beyond stroke in potentially treating multiple sclerosis, Parkinson’s disease, and other lower limb disabilities,” stated Larry Jasinski, Chief Executive Officer.
“We have begun pre-clinical testing of the Restore system to study its safety and use in the rehabilitation setting for the mobility needs of stroke patients. We are targeting a clinical trial with the Restore system to begin in early 2018 and aim to commercialize the system for use by stroke patients in Europe in late 2018, followed by the United States in late 2018 or early 2019, subject to the timing and receipt of CE mark and Food and Drug Administration clearance,” he added.
Third Quarter 2017 Financial Results
Total revenue was $1.7 million for the third quarter of 2017, an increase of 24% compared with $1.4 million in the third quarter of 2016. 16 ReWalk units were placed during the third quarter, compared with 23 ReWalk systems placed in the prior year period, of which 10 were placed in the U.S., three in Europe, and three with distributors. An additional 8 rental units from previous periods converted to purchases. For the first three quarters of 2017, a total of 19 rental units converted to sales.
Gross margin improved to 41% during the third quarter of 2017 compared to 21% in the prior year period, primarily attributable to sales mix, an increase in the conversion of rental units to purchases, and lower product costs.
Total operating expenses in the third quarter of 2017 were $6.1 million compared with $7.7 million in the third quarter of 2016. Operating expenses in the third quarter of 2017 reflect initiatives to reduce spending announced earlier in 2017.
Net loss was $5.8 million for the third quarter of 2017 compared with a net loss of $7.9 million in the prior year quarter. Non-GAAP net loss for the third quarter was $4.8 million compared with a non-GAAP net loss of $6.7 million in the third quarter of 2016.*
*A reconciliation of net loss to non-GAAP net loss is included at the end of this press release.
Liquidity
ReWalk ended the third quarter of 2017 with $12.9 million in cash and cash equivalents.
Conference Call
ReWalk management will host its third quarter conference call as follows:
Date November 2, 2017
Time 8:30 AM EDT
Telephone U.S: (844) 423-9889
International: (716) 247-5804
Israel: 18 09 45 78 77
Access code: 4999768
Webcast (live and archive) www.rewalk.com under the “Investors” section.
A telephone replay will be available shortly after the completion of the call for two weeks at (855) 859-2056 (U.S.) or (404) 537-3406 (International). The passcode for the replay is 4999768.
About ReWalk Robotics Ltd.
ReWalk Robotics Ltd. develops, manufactures and markets wearable robotic exoskeletons for individuals with spinal cord injury. ReWalk’s mission is to fundamentally change the quality of life for individuals with lower limb disability through the creation and development of market leading robotic technologies. Founded in 2001, ReWalk has headquarters in the U.S., Israel and Germany. For more information on the ReWalk systems, please visit www.rewalk.com.
ReWalk® is a registered trademark of ReWalk Robotics Ltd. in Israel.
