Increased market demand and new leasing model continue to generate significant sales growth
Total minimum committed revenue projection is record $27 million for year-end 2017, up 142% versus year-end 2016
Strong balance sheet with $16.5 million of cash at year-end 2017
HACKENSACK, N.J., March 19, 2018 (GLOBE NEWSWIRE) -- Brainsway Ltd. (TASE:BRIN), a leader in the advanced non-invasive treatment of brain disorders, today announced the Company’s financial results for the fourth quarter and year ended December 31, 2017, and provided a corporate update.
“2017 was a record-setting year for us after the adoption of our new business model in the first quarter of 2017,” said Yaacov Michlin, Chief Executive Officer of Brainsway. “We adopted a business model focusing on leasing our Deep Transcranial Magnetic Stimulation (Deep TMS) systems to customers, which continues to resonate well in the marketplace. Accordingly, our fourth quarter 2017 revenues of $3.6 million were up 68% over the first quarter of 2017. We have enjoyed steady growth in both leases and in sales of our systems throughout 2017.”
“Importantly, this growth has been achieved based mainly on systems leased or sold in the US for Major Depressive Disorder. In 2018, we look forward to receiving the FDA’s response to the De Novo application we filed for permission to market our Deep TMS system for the treatment of Obsessive Compulsive Disorder (OCD),” added Mr. Michlin. “We also plan to expand our business geographically to the large European and Chinese markets in the near-term. Moreover, we are excited to advance our clinical studies, including our smoking cessation trial and potential trials in various neurological disorders.“
- Developing a clinical trial protocol for the Deep TMS device which will be assessed for safety and efficacy in the treatment of subjects with Opioid Use Disorder
- Expanding commercial efforts in Europe and China
Fourth Quarter 2017 Financial Highlights
- New leasing business model continues to generate significant revenue growth, quarter-over-quarter
- Total revenues in the fourth quarter of 2017 was $3.6 million, up 68% from the $2.1 million of total revenues in the first quarter of 2017
- Leasing revenues of $1.9 million in the fourth quarter
- Sales revenues of $1.7 million in the fourth quarter
Full-Year 2017 Financial Highlights
- Total revenues for the year ended December 31, 2017 was $11.1 million, down 3% from the $11.5 million in total revenues in the year ended December 31, 2016, principally due to a change in the Company’s focus to the leasing model and a one-time revenue event in 2016
- Leasing revenues of $6.6 million in the year ended December 31, 2017, representing 60% of total revenues
- Sales revenues of $4.5 million in the year ended December 31, 2017, representing 40% of total revenues
- Newly signed contracts increased the Company’s backlog for year-end 2017 to a record $27 million in total committed projected revenues from current leasing customers, not including additional potential usage fees.
At December 31, 2017, the Company had cash, cash equivalents, and short-term deposits of $16.5 million. Brainsway completed an $8.5 million equity financing from leading Israeli investors as part of a private stock placement in December 2017 and secured a credit facility with Mizrahi Bank of $6 million. Brainsway’s cash burn rate is approximately $1 million per quarter.
Brainsway is engaged in the research, development and marketing of a medical system for non-invasive treatment of common brain disorders. The medical system developed and manufactured by the company is based on a unique and breakthrough technology called Deep TMS, which can reach the depth of the brain and produce nerve stimulation or suppression. In the US, the Company’s device is FDA cleared for the treatment of major depression (MDD), and about 90% of MDD patients are eligible for coverage (including from both private and governmental payors). The Company's systems have also received CE clearance and are sold worldwide.
Forward Looking Statements
This press release contains forward-looking statements about the Company’s expectations, beliefs and intentions. These forward-looking statements and their implications are based on the current expectations of the management of the Company only, and are subject to a number of factors and uncertainties that could cause actual results to differ materially from those described in the forward-looking statements. In addition, historical results or conclusions from scientific research and clinical studies do not guarantee that future results would suggest similar conclusions or that historical results referred to herein would be interpreted similarly in light of additional research or otherwise. The following factors, among others, could cause actual results to differ materially from those described in the forward-looking statements: changes in technology and market requirements; we may encounter delays or obstacles in launching and/or successfully completing our device studies; our products may not be approved by regulatory agencies: we may be unable to retain or attract key employees whose knowledge is essential to the development of our products; unforeseen scientific difficulties may develop with our process; our products may wind up being more expensive than we anticipate; our patents may not be sufficient; our products may harm recipients; changes in legislation; inability to timely develop and introduce new technologies, products and applications, which could cause the actual results or performance of the Company to differ materially from those contemplated in such forward-looking statements.
Any forward-looking statement in this press release speaks only as of the date of this press release. 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, except as may be required by any applicable securities laws. More detailed information about the risks and uncertainties affecting the Company is contained under the heading “Risk Factors” in Brainsway Ltd.'s periodic filings with the Tel-Aviv Stock Exchange.
Chief Financial Officer