The Caesarea, Israel-based company posted losses of $3.8 million, or 7¢ per share, on sales of $13.2 million for the three months ended June 30, seeing losses grow 4.5% while sales shrunk 14.3% compared with the same period during the previous year.
Adjusted to exclude one-time items, losses per share were 3¢, just behind the 2¢ consensus on Wall Street where analysts expected too see sales of $17 million, which the company missed.
“Our efforts to accelerate the adoption of our technologies resulted in a significant increase in robotic guidance systems sold in the second quarter of 2018 compared to the year-ago period. Our objective for 2018 is to achieve our prior outlook for modest revenue growth as compared to 2017. As we previously disclosed, 2018 is a transition year for the company following the late 2017 move from direct sales of the Mazor X system to a distribution model with Medtronic. The expected larger unit volumes, offset by the transfer pricing, is designed to accelerate the adoption of our systems by extending our market reach and expanding our geographical presence. The faster growth of our installed base will also accelerate our recurring revenue business, which represented 48% of our Q2 revenues. During the quarter, several globally recognized academic centers and hospitals adopted the Mazor X. With this continued trust by the market, we remain confident that together with our partner we will achieve our joint objective of placing hundreds of Mazor X systems into service over the next few years,” CEO Ori Hadomi said in a press release. “Later this year, Mazor and Medtronic are anticipating a market-changing event with the introduction of the Mazor X Stealth Edition system integrating Medtronic’s legacy Stealth navigation system with the Mazor X platform. Given the binding purchase commitments received to date, and to ensure rapid system and upgrade delivery, we are implementing production capacity increases at our Israel facilities. We look forward to unveiling the Mazor X Stealth Edition at NASS in late September in Los Angeles.”
Shares in Mazor have fallen approximately 0.1% today, at $52.76 as of 3:43 p.m. EDT.
In May, Mazor saw shares rise after the surgical robotic platform maker beat expectations on Wall Street with its first quarter 2018 earnings.