View all news

LENSAR Reports Second Quarter 2022 Financial Results and Provides Business Update

August, 08, 2022

Company Receives FDA Clearance of ALLY™ Adaptive Cataract Treatment System

Second Quarter Procedure Volume Increases 8%, in the Aggregate, and 15% in the U.S. Over Q2 2021 Levels

LENSAR, Inc. (Nasdaq: LNSR) (“LENSAR” or “the Company”), a global medical technology company focused on advanced femtosecond laser surgical solutions for the treatment of cataracts, today announced financial results for the quarter ended June 30, 2022 and provided an update on operational initiatives.

“In June, we achieved a significant milestone in LENSAR’s history, the Food and Drug Administration (“FDA”)’s clearance of our ALLY Adaptive Cataract Treatment System. Interest in the ALLY System has been high since we initiated our pre-clearance marketing efforts and continues to increase as we near the commercial placement of the first system. We are navigating supply chain challenges and expect to have approximately 10 ALLY systems placed in the U.S. in 2022.” said Nick Curtis, Chief Executive Officer of LENSAR. “Our results for the second quarter were impacted by several factors: strong U.S. procedure volumes were partially offset by softness in the rest of the world and product revenues declined as we completed placements of our last new LENSAR Laser Systems (“LLS”). We are extremely pleased with our continued progress and ability to navigate and successfully pivot around challenges outside of our company. We are proud of our ongoing accomplishments, including increasing U.S. femtosecond laser cataract procedure market share over the last few quarters, which we believe positions us well for our ALLY System launch this upcoming quarter. We view the initial launch and rollout of the ALLY System as the foundation for LENSAR’s sustainable growth and success over the long-term.”

Second Quarter 2022 Financial Results

Total revenue for the quarter ended June 30, 2022 was $8.0 million, an increase of $0.1 million, or 1%, compared to total revenue of $7.9 million for the quarter ended June 30, 2021. The increase was primarily attributable to increased procedure volume as compared to the second quarter of 2021, partially offset by a decline in revenue associated with lower LLS system sales in 2022 as we completed placement of the last new LLS systems as part of our operational transition to the ALLY System’s commercial launch in the third quarter of 2022.

For the quarter ended June 30, 2022, approximately 99% of revenue was attributable to recurring sources compared to 90% for the quarter ended June 30, 2021. The following table provides information about procedure volume:

 

 

2022

 

2021

Q1

 

38,901

 

28,122

Q2

 

33,359

 

30,966

Total

 

72,260

 

59,088

Selling, general and administrative expenses for the quarter ended June 30, 2022 were $7.6 million, an increase of $2.1 million, or 37%, compared to $5.5 million for the quarter ended June 30, 2021. The increase was primarily attributable to increases in sales and marketing expenses of $0.9 million, which was primarily the result of increased trade show and travel activity, and an increase in professional fees of $0.7 million.

Research and development expenses were $3.8 million and $3.0 million for the quarters ended June 30, 2022 and 2021, respectively, an increase of $0.8 million or 28%. This increase was primarily due to the continued development of ALLY.

Net loss for the quarter ended June 30, 2022 was $6.8 million, or ($0.67) per share, compared to net loss of $4.4 million, or ($0.47) per share, for the quarter ended June 30, 2021. Included within operating expenses recorded for the quarters ended June 30, 2022 and 2021 are stock-based compensation expenses recorded for the quarters ended June 30, 2022 and 2021 of $1.6 million and $1.4 million, respectively, and ALLY System inventory costs of $1.0 million and $1.1 million, respectively.

Earnings Before Interest, Taxes, Depreciation and Amortization (“EBITDA”) for the quarter ended June 30, 2022 was ($5.9) million, compared with ($3.7) million for the quarter ended June 30, 2021. Adjusted EBITDA, which we calculate by adding back stock-based compensation expense to EBITDA, was ($4.3) million for the quarter ended June 30, 2022 and ($2.3) million for the quarter ended June 30, 2021. EBITDA and Adjusted EBITDA are non-GAAP financial measures, and a reconciliation of these measures to net loss is set forth below in this press release.

As of June 30, 2022, the Company had cash and cash equivalents of $25.2 million as compared to $31.6 million at December 31, 2021. Cash utilized in the quarter was $3.8 million, which was primarily attributable to ALLY System purchases and commercial readiness activities as well as a $1.2 million contingent consideration payment, which was contingent upon initial FDA clearance of the ALLY System. Based on its cash position and operational forecasts, the Company believes it has sufficient cash to fund operations into 2024.

Conference Call:

LENSAR management will host a conference call and live webcast to discuss the second quarter results and provide a business update today, August 8, 2022 at 8:30 a.m. ET.

To participate by telephone, please dial (888) 396-8049 (Domestic) or (416) 764-8646 (International). The conference ID number is 64265948. The live webcast can be accessed under “Events & Presentations” in the Investor Relations section of the company’s website at https://ir.lensar.com. Please log in approximately 5-10 minutes prior to the call to register and to download and install any necessary software. The call and webcast replay will be available until August 22, 2022.

About LENSAR

LENSAR is a commercial-stage medical device company focused on designing, developing, and marketing advanced systems for the treatment of cataracts and the management of visually significant astigmatism as an integral aspect of the cataract procedure. LENSAR has developed its next-generation ALLY™ Adaptive Cataract Treatment System, the first platform to integrate proprietary imaging with a dual-pulse femtosecond laser in a compact system. ALLY is designed to transform cataract surgery by utilizing LENSAR’s advanced technologies with the ability to perform the entire procedure in an operating room or in-office surgical suite, delivering operational efficiencies and reduced overhead. ALLY includes LENSAR’s proprietary Streamline® software technology, designed to guide surgeons to achieve better outcomes.

Forward-looking Statements

This press release contains “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. All statements contained in this press release that do not relate to matters of historical fact should be considered forward-looking statements, including, without limitation, statements regarding the Company’s commercialization of the ALLY™ Adaptive Cataract Treatment System and expectations about the Company’s operational initiatives and business strategy, as well as the Company’s cash and operational forecasts and ability to fund ongoing operating expenses. In some cases, you can identify forward-looking statements by terms such as “anticipate,” “believe,” “could,” “expect,” “should,” “plan,” “intend,” “estimate,” “target,” “mission,” “may,” “will,” “would,” “should,” “could,” “target,” “potential,” “project,” “predict,” “contemplate,” “potential,” or the negative thereof and similar words and expressions.

Each of these forward-looking statements involves risks and uncertainties. Actual results may differ materially from those, express or implied, in these forward-looking statements. Important factors that could impair the value of the Company’s assets and business include, without limitation, its history of operating losses and ability to generate revenue; its ability to maintain, grow market acceptance of and enhance its LENSAR Laser and ALLY Systems; the impact of the COVID-19 pandemic and the Company’s ability to grow revenues; the Company’s ability to obtain any additional necessary clearances or approvals for the ALLY Adaptive Cataract Treatment System; the willingness of patients to pay the price difference for LENSAR products; its ability to grow a U.S. sales and marketing organization; its ability to meet its future capital needs; the impact of any material disruption to the supply or manufacture of ALLY Systems and its recurring revenue products; the ability of the Company to compete against competitors that have longer operating histories and more established products than the Company; the Company’s ability to address numerous international business risks; and the other important factors that are disclosed under the heading “Risk Factors” contained in the Company’s Quarterly Report on Form 10-Q for the quarterly period ended March 31, 2022, filed with the Securities and Exchange Commission (“SEC”), to be filed with the SEC, as such factors may be updated from time to time, including the Company’s Quarterly Report on Form 10-Q for the quarterly period ended June 30, 2022 and in its other filings with the SEC, each accessible on the SEC’s website at www.sec.gov and the Investor Relations section of the Company’s website at https://ir.lensar.com. All forward-looking statements are expressly qualified in their entirety by such factors. Except as required by law, the Company undertakes no obligation to publicly update or review any forward-looking statement, whether as a result of new information, future developments or otherwise. These forward-looking statements should not be relied upon as representing LENSAR’s views as of any date subsequent to the date of this press release.

Non-GAAP Financial Measures

The Company prepares and analyzes operating and financial data and non-GAAP measures to assess the performance of its business, make strategic and offering decisions and build its financial projections. The key non-GAAP measures it uses are EBITDA and Adjusted EBITDA.

EBITDA is defined as net loss before interest expense, interest income, income tax expense, depreciation and amortization expenses. EBITDA is a non-GAAP financial measure. EBITDA is specifically disclosed because the Company believes that EBITDA provides meaningful supplemental information for investors regarding the performance of its business and facilitates a meaningful evaluation of actual results on a comparable basis with historical results. Adjusted EBITDA is also a non-GAAP financial measure. The Company believes Adjusted EBITDA, which excludes stock-based compensation expense, provides meaningful supplemental information for investors when evaluating its results and comparing it to peer companies as stock-based compensation expense is a significant non-cash charge due to the recapitalization of the Company. It uses these non-GAAP financial measures in order to have comparable financial results to analyze changes in its underlying business from quarter to quarter. However, there are a number of limitations related to the use of non-GAAP measures and their nearest GAAP equivalents. For example, other companies may calculate non-GAAP measures differently, or may use other measures to calculate their financial performance and, therefore, any non-GAAP measures it use may not be directly comparable to similarly titled measures of other companies.

A reconciliation of EBITDA and Adjusted EBITDA to their most comparable GAAP financial measure are set forth below.

Three Months Ended
June 30,

 

Six Months Ended
June 30,

(Dollars in thousands)

2022

 

2021

 

2022

 

2021

Net loss

$

(6,759)

$

(4,362)

$

(13,433)

$

(9,544)

Less: Interest income

 

(39)

 

(13)

 

(48)

 

(31)

Add: Depreciation expense

 

569

 

342

 

1,110

 

670

Add: Amortization expense

 

287

 

309

 

596

 

622

EBITDA

 

(5,942)

 

(3,724)

 

(11,775)

 

(8,283)

Add: Stock-based compensation expense

 

1,637

 

1,430

 

3,244

 

3,750

Adjusted EBITDA

$

(4,305)

$

(2,294)

$

(8,531)

$

(4,533)

LENSAR, Inc.

STATEMENTS OF OPERATIONS

(In thousands, except per share amounts)

 

Three Months Ended
June 30,

 

Six Months Ended
June 30,

2022

 

2021

 

2022

 

2021

Revenue

Product

$

5,733

$

6,056

$

12,702

$

11,214

Lease

 

1,415

 

1,140

 

2,814

 

2,251

Service

 

890

 

726

 

1,862

 

1,500

Total revenue

 

8,038

 

7,922

 

17,378

 

14,965

Cost of revenue (exclusive of amortization)

Product

 

1,765

 

2,366

 

4,459

 

4,456

Lease

 

484

 

268

 

958

 

519

Service

 

897

 

830

 

2,377

 

1,638

Total cost of revenue

 

3,146

 

3,464

 

7,794

 

6,613

Operating expenses

Selling, general and administrative expenses

 

7,569

 

5,518

 

13,847

 

11,553

Research and development expenses

 

3,834

 

3,006

 

8,622

 

5,752

Amortization of intangible assets

 

287

 

309

 

596

 

622

Operating loss

 

(6,798)

 

(4,375)

 

(13,481)

 

(9,575)

Other income

Other income, net

 

39

 

13

 

48

 

31

Net loss

$

(6,759)

$

(4,362)

$

(13,433)

$

(9,544)

Net loss per share:

Basic and diluted

$

(0.67)

$

(0.47)

$

(1.34)

$

(1.03)

Weighted-average number of shares used in calculation of net loss per share:

Basic and diluted

 

10,073

 

9,296

 

10,020

 

9,242

LENSAR, Inc.

BALANCE SHEETS

(In thousands, except per share amounts)

 

June 30, 2022

December 31, 2021

Assets

Current assets:

Cash and cash equivalents

$

25,196

$

31,637

Accounts receivable, net of allowance of $25 and $47, respectively

 

2,760

 

4,638

Notes receivable, net of allowance of $181 and $61, respectively

 

164

 

350

Inventories

 

5,856

 

6,488

Prepaid and other current assets

 

1,230

 

1,700

Total current assets

 

35,206

 

44,813

Property and equipment, net

 

680

 

756

Equipment under lease, net

 

7,161

 

6,690

Notes and other receivables, long-term, net of allowance of $1 and $2, respectively

 

29

 

121

Intangible assets, net

 

12,674

 

10,870

Other assets

 

2,950

 

3,215

Total assets

$

58,700

$

66,465

Liabilities and stockholders’ equity

Current liabilities:

Accounts payable

$

4,191

$

2,694

Accrued liabilities

 

4,372

 

4,604

Contingent consideration

 

1,200

 

Deferred revenue

 

937

 

904

Operating lease liabilities

 

521

 

512

Total current liabilities

 

11,221

 

8,714

Long-term operating lease liabilities

 

2,540

 

2,803

Other long-term liabilities

 

37

 

69

Total liabilities

 

13,798

 

11,586

 

Stockholders’ equity:

Preferred stock, par value $0.01 per share, 10,000 shares authorized at June 30, 2022 and December 31, 2021; no shares issued and outstanding at June 30, 2022 and December 31, 2021

 

 

Common stock, par value $0.01 per share, 150,000 shares authorized at June 30, 2022 and December 31, 2021; 11,021 and 10,990 shares issued and outstanding at June 30, 2022 and December 31, 2021, respectively

 

110

 

110

Additional paid-in capital

 

135,819

 

132,363

Accumulated deficit

 

(91,027)

 

(77,594)

Total stockholders’ equity

 

44,902

 

54,879

Total liabilities and stockholders’ equity

$

58,700

$

66,465

 

Thomas R. Staab, II, CFO
ir.contact@lensar.com

Lee Roth / Cameron Radinovic
Burns McClellan for LENSAR
lroth@burnsmc.com / cradinovic@burnsmc.com

Source: LENSAR, Inc.

Multimedia Files:

Categories: Press Releases
View all news