ReWalk Robotics Ltd.: ReWalk Robotics Reports Third Quarter 2014 Financial Results

Tickers: RWLK
ReWalk Robotics Reports Third Quarter 2014 Financial Results
Revenue up 277% year-over-year to $1.5 million

Successful completion of IPO raises $38.7 million, net

ReWalk becomes first and only exoskeleton cleared by the FDA for use in the U.S.

YOKNEAM ILIT, Israel and MARLBOROUGH, Mass., Nov. 13, 2014 (GLOBE NEWSWIRE) -- ReWalk Robotics Ltd. (Nasdaq:RWLK) ("ReWalk," or "the Company") today announced its financial results for the three- and nine-month periods ended September 30, 2014. Highlights of and subsequent to the third quarter 2014 include:

  • Initiated U.S. sales of ReWalk personal system following U.S. Food and Drug Administration ("FDA") clearance in June 2014 to market ReWalk systems for personal and rehabilitation use to people with paraplegia due to spinal cord injury ("SCI");
  • Total revenue increased 277% to $1.5 million compared to $408,000 for the third quarter of 2013 resulting from the sale of 26 ReWalk systems;
  • Net loss was $6.4 million, or $(2.81) per basic and diluted share, compared to a net loss of $3.3 million or $(19.52) per basic and diluted share for the third quarter of 2013;
  • Non-GAAP net loss was $3.5 million, or $(1.34) per basic and diluted share, compared to a non-GAAP net loss of $2.2 million, or $(11.91) per basic and diluted share for the third quarter of 2013, mainly due to investment in research and development and sales and marketing resources;
  • Raised $38.7 million, net, through the successful completion of our initial public offering, increasing liquidity to fund commercialization of the ReWalk personal system in the U.S., expand infrastructure, and continue research and development;
  • John J. Peters VA Medical Center in the United States established a policy to provide payment for FDA-cleared powered exoskeletons; ReWalk is the sole FDA-cleared powered exoskeleton; and,
  • Secured reimbursement approval, on a case-by-case basis, from four leading German insurers, the only powered exoskeleton system to do so.
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"We achieved several significant milestones during the third quarter of 2014 that allowed us to bring our revolutionary technology to a broader group of individuals with spinal cord injuries. Our market-leading position was strengthened this quarter when we received FDA clearance as the only powered exoskeleton that can be legally marketed in the U.S.," said Larry Jasinski, Chief Executive Officer. "We are excited to be able to provide wheelchair-bound individuals with access to the ReWalk system for daily use at home and in their communities, where they need it most."

"We also secured reimbursement on a case-by-case basis for ReWalk personal systems in the U.S. and Germany, paving the way for additional favorable coverage decisions by other major insurers. Importantly, we strengthened our balance sheet with the successful completion of our IPO. Building on the momentum generated during the third quarter, we will continue to aggressively execute our strategy in the U.S., Europe and other geographies," Jasinski concluded.

Third Quarter 2014 Financial Results

Total revenues were $1.5 million for the third quarter of 2014, up 277% compared with $408,000 in the third quarter of 2013, due to higher sales of ReWalk systems during the third quarter of 2014. In the third quarter of 2014, 26 ReWalk systems were sold compared with six ReWalk systems sold in the prior year period.

Gross profit improved to $331,000 as compared to a gross loss of $20,000 in the third quarter of 2013, reflecting higher sales in the 2014 period coupled with manufacturing economies of scale. All ReWalk systems sold in third quarter of 2014 consisted of systems purchased from Sanmina.

Total operating expenses in the third quarter of 2014 were $8.1 million, compared with $2.2 million in the third quarter of 2013. The increase reflects non-cash share-based compensation expenses of $4.5 million in third quarter of 2014 and incremental investment in sales, marketing, and research and development resources. Excluding non-cash share-based compensation expenses, total operating expenses were $3.6 million during the third quarter of 2014.

Operating loss was $7.8 million for the third quarter of 2014 compared with $2.2 million during the prior year quarter.  Non-GAAP operating loss, excluding non-cash share-based compensation expenses, was $3.3 million for the third quarter of 2014. 

Net loss was $6.4 million for the third quarter of 2014 compared with $3.3 million in the prior year quarter. Non-GAAP net loss for the third quarter of 2014 was $3.5 million compared with non-GAAP net loss of $2.2 million in the prior year quarter. 

A reconciliation of operating loss and net loss to non-GAAP operating loss and non-GAAP net loss is included at the end of this press release.

Nine Month 2014 Financial Hi