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BILLERICA, Mass., May 08, 2023 (GLOBE NEWSWIRE) -- Conformis, Inc. (NASDAQ:CFMS), an orthopedic medical device company that features personalized knee and hip replacement products, announced today financial results for the first quarter ended March 31, 2023.
First Quarter 2023 Summary
| Three months ended March 31, | Increase/(decrease) | |||||||||||||
| ($, in thousands) | 2023 | 2022 | $ Change | % Change | % Change | |||||||||
| (as reported) | (constant currency) | |||||||||||||
| United States | $ | 10,567 | $ | 12,715 | $ | (2,148 | ) | (17 | )% | (17 | )% | |||
| Rest of world | 2,124 | 2,169 | (45 | ) | (2 | )% | 4 | % | ||||||
| Product revenue | 12,691 | 14,884 | (2,193 | ) | (15 | )% | (14 | )% | ||||||
| Royalty revenue | 146 | 667 | (521 | ) | (78 | )% | (78 | )% | ||||||
| Total revenue | $ | 12,837 | $ | 15,551 | $ | (2,714 | ) | (17 | )% | (17 | )% | |||
First Quarter 2023 Highlights
Revenue
Gross Margin
Operating Expenses
Net Loss
Capital Structure and Liquidity
Outlook
Note on Non-GAAP Financial Measures
In addition to disclosing financial measures prepared in accordance with U.S. generally accepted accounting principles (GAAP), the Company provides certain information regarding the Company's financial results or projected financial results on a non-GAAP "constant currency basis." This information estimates the impact of changes in foreign currency rates on the translation of the Company's current or projected future period financial results as compared to the applicable comparable period. This impact is derived by taking the adjusted current or projected local currency results and translating them into U.S. dollars based upon the foreign currency exchange rates for the applicable comparable period. It does not include any other effect of changes in foreign currency rates on the Company's results or business. Non-GAAP information is not a substitute for, and is not superior to, information presented on a GAAP basis. Company management uses these non-GAAP measures internally to measure operational performance.
Conference Call and Webcast – May 8, 2023 – 8:30 am ET
As previously announced, Mark Augusti, CEO, and Bob Howe, CFO, will host a webcast and conference call, Monday, May 8, 2023, at 8:30 a.m. Eastern Time to discuss this business update.
The webcast of the earnings call will be live at: https://edge.media-server.com/mmc/p/eynkc88d
To attend by telephone, please use the information below for dial-in access.
The webcast will be live at: https://edge.media-server.com/mmc/p/eynkc88d
To attend by telephone, please use the information below for dial-in access.
The online archive of the webcast will be available on the company’s website at ir.conformis.com for 30 days.
About Conformis, Inc.
Conformis is a medical technology company focused on advancing orthopedic patient care and creating a world without joint pain. Its product portfolio is designed to maximize surgeon and patient choice by offering fully personalized solutions through its Image-to-Implant® Platinum Services℠ Program as well as data-informed, standardized solutions that combine many benefits of personalization with the convenience and flexibility of an off-the-shelf system. Conformis’ sterile, just-in-time, Surgery-in-a-Box™ delivery system is available with all of its implants and personalized, single-use instruments. Conformis owns or exclusively in-licenses issued patents and pending patent applications that cover personalized implants and patient-specific instrumentation for all major joints.
For more information, visit www.conformis.com. To receive future releases in e-mail alerts, sign up at ir.conformis.com.
Cautionary Statement Regarding Forward-Looking Statements
Statements in this press release about our future expectations, plans and prospects, the anticipated timing of our product launches, and our financial position and results, total revenue, product revenue, gross margin, operations and growth, as well as other statements containing the words "anticipate," "believe," "continue," "could," "estimate," "expect," "intend," "may," "might," "plan," "potential," "predict," "project," "should," "target," "will," or "would" or the negative of these terms or other and similar expressions are intended to identify forward-looking statements within the meaning of the safe harbor provisions of The Private Securities Litigation Reform Act of 1995, although not all forward-looking statements contain these identifying words. We may not actually achieve the plans, intentions or expectations disclosed in our forward-looking statements, and you should not place undue reliance on our forward-looking statements. Actual results or events could differ materially from the plans, intentions and expectations disclosed in the forward-looking statements we make as a result of a variety of risks and uncertainties, including risks related to the novel coronavirus pandemic and the response to the pandemic; whether our cash resources will be sufficient to fund our continuing operations for the periods anticipated; risks related to our estimates and expectations regarding our revenue, gross margin, expenses, revenue growth and other results of operations, and the other risks and uncertainties described in the "Risk Factors" sections of our Annual Report on Form 10-K for the fiscal year ended December 31, 2022, Quarterly Report on Form 10-Q for the fiscal quarters ended March 31, 2023, and other public filings with the U.S. Securities and Exchange Commission. In addition, the forward-looking statements included in this press release represent our views as of the date hereof. We anticipate that subsequent events and developments may cause our views to change. However, while we may elect to update these forward-looking statements at some point in the future, we specifically disclaim any obligation to do so. These forward-looking statements should not be relied upon as representing our views as of any date subsequent to the date hereof.
CONTACT:
Investor Relations
ir@conformis.com
(781) 374-5598
| CONFORMIS, INC. AND SUBSIDIARIES | ||||||||
| Consolidated Statements of Operations | ||||||||
| (unaudited) | ||||||||
| (in thousands, except share and per share data) | ||||||||
| Three Months Ended March 31, | ||||||||
| 2023 | 2022 | |||||||
| Revenue | ||||||||
| Product | $ | 12,691 | $ | 14,884 | ||||
| Royalty and licensing | 146 | 667 | ||||||
| Total revenue | 12,837 | 15,551 | ||||||
| Cost of revenue | 7,734 | 9,810 | ||||||
| Gross profit | 5,103 | 5,741 | ||||||
| Operating expenses | ||||||||
| Sales and marketing | 5,051 | 6,665 | ||||||
| Research and development | 2,458 | 4,479 | ||||||
| General and administrative | 7,023 | 9,333 | ||||||
| Total operating expenses | 14,532 | 20,477 | ||||||
| Loss from operations | (9,429 | ) | (14,736 | ) | ||||
| Other income and expenses | ||||||||
| Interest income | 9 | 17 | ||||||
| Interest expense | (637 | ) | (451 | ) | ||||
| Foreign currency exchange transaction income (loss) | 468 | (827 | ) | |||||
| Total other expenses | (160 | ) | (1,261 | ) | ||||
| Loss before income taxes | (9,589 | ) | (15,997 | ) | ||||
| Income tax (benefit) provision | (18 | ) | 34 | |||||
| Net loss | $ | (9,571 | ) | $ | (16,031 | ) | ||
| Net loss per share: | ||||||||
| Basic and diluted* | $ | (1.32 | ) | $ | (2.24 | ) | ||
| Weighted average common shares outstanding: | ||||||||
| Basic and diluted* | 7,253,645 | 7,167,171 | ||||||
*Adjusted for the 1-for-25 reverse stock split
| CONFORMIS, INC. AND SUBSIDIARIES | ||||||||
| Consolidated Balance Sheets | ||||||||
| (in thousands, except share and per share data) | ||||||||
| March 31, 2023 | December 31, 2022 | |||||||
| Assets | (unaudited) | |||||||
| Current Assets | ||||||||
| Cash and cash equivalents | $ | 37,786 | $ | 48,667 | ||||
| Accounts receivable, net | 8,552 | 9,773 | ||||||
| Royalty and licensing receivable | 120 | 134 | ||||||
| Inventories, net | 19,490 | 18,910 | ||||||
| Prepaid expenses and other current assets | 1,671 | 1,785 | ||||||
| Total current assets | 67,619 | 79,269 | ||||||
| Property and equipment, net | 8,060 | 8,154 | ||||||
| Operating lease right-of-use assets | 5,696 | 6,078 | ||||||
| Other Assets | ||||||||
| Restricted cash | 462 | 462 | ||||||
| Other long-term assets | 86 | 85 | ||||||
| Total assets | $ | 81,923 | $ | 94,048 | ||||
| Liabilities and stockholder's equity | ||||||||
| Current liabilities | ||||||||
| Accounts payable | $ | 4,164 | $ | 4,163 | ||||
| Accrued expenses | 5,726 | 7,978 | ||||||
| Operating lease liabilities | 1,952 | 1,932 | ||||||
| Total current liabilities | 11,842 | 14,073 | ||||||
| Other long-term liabilities | 283 | 230 | ||||||
| Long-term debt, less debt issuance costs | 20,601 | 20,563 | ||||||
| Operating lease liabilities | 4,572 | 5,003 | ||||||
| Total liabilities | 37,298 | 39,869 | ||||||
| Commitments and contingencies | ||||||||
| Stockholders' equity | ||||||||
| Preferred stock, $0.00001 par value: | ||||||||
| Authorized: 5,000,000 shares authorized at March 31, 2023 and December 31, 2022; no shares issued and outstanding as of March 31, 2023 and December 31, 2022 | — | — | ||||||
| Common stock, $0.00001 par value: | ||||||||
| Authorized: 20,000,000 shares authorized at March 31, 2023 and December 31, 2022; 7,497,138 and 7,502,462 shares issued and outstanding at March 31, 2023 and December 31, 2022, respectively | — | — | ||||||
| Additional paid-in capital | 635,268 | 634,647 | ||||||
| Accumulated deficit | (590,895 | ) | (581,324 | ) | ||||
| Accumulated other comprehensive income | 252 | 856 | ||||||
| Total stockholders' equity | 44,625 | 54,179 | ||||||
| Total liabilities and stockholders' equity | $ | 81,923 | $ | 94,048 | ||||