CAESAREA, Israel, Feb. 9, 2016 /PRNewswire/ -- LabStyle Innovations Corp. (OTCQB: DRIO), developer of the Dario Diabetes Management Solution, reported financial and operational results for the year ended December 31, 2015 and provided an outlook for the coming quarters.
“We are very pleased to report continuing growth in revenues and product shipments, as well as a significant reduction in net and EBITDA loss. We believe Dario’s user centric approach results in an exceedingly high level of satisfaction among users, which translates into enhanced financial results for LabStyle,” stated Erez Raphael, LabStyle’s Chief Executive Officer.
“The positive user feedback and corresponding market penetration in countries such as Australia is encouraging as we look forward to launching the Dario in the United States at the end of February 2016, where our lean, digital, direct-to-consumer approach will be a crucial asset. Digital health technology is transforming the multi-billion dollar medical device industry into a user driven market. We have encouraged and enabled patients to be more empowered in managing their own health by using our digital health solutions. We’ve found they are extremely satisfied with LabStyle’s user-friendly, patient-centric tools that improve healthcare economics while providing caregivers and physicians with superior information,” Mr. Raphael concluded.
Q4 and Year-End 2015 Highlights:
- Sequential quarterly shipments to distribution partners and customers of products and software services increased 61% from $292,000 in Q3 to $470,000 in Q4.
- Net loss attributable to holders of common stock and operating loss in Q4 2015 narrowed by 9% and 27%, respectively, compared to Q3 2015.
- Net loss attributable to holders of common stock narrowed by 55% and non-GAAP adjusted EBITDA narrowed by 35% in 2015 as compared to 2014.
- Annual shipments to distribution partners and customers of products and software services increased 694% from $145,000 in 2014 to $1,152,000 in 2015.
- LabStyle Innovations received U.S. FDA Marketing Clearance for the Dario Blood Glucose Monitoring System.
- In preparation for the U.S. launch, LabStyle opened its North American headquarters in Burlington, Massachusetts, located near Boston in the ‘high tech corridor’ along Route 128 and Interstate 95. The office is headed by Todd Durniak, LabStyle’s Executive Vice President and General Manager for North America.
- LabStyle has been featured in multiple U.S.-based media channels including MedBuzz, Med Device Online, Gizmaz and others.
- New data and user case studies have been presented at numerous scientific, technology, and industry conferences.
- IP position was strengthened with the U.S. PTO issuing LabStyle a patent expanding its IP to address management of chronic diseases beyond diabetes through smart phones.
- LabStyle signed a new distribution agreement with one of India’s leading pharmaceutical and medical device networks, Centaur Pharmaceuticals Pvt. Ltd.
Near-term outlook:
- LabStyle is planning to launch the Dario in the U.S., the largest addressable market in the world, by the end of February 2016.
- Market launches are planned for additional territories in APAC and EMEA later in 2016.
- Continuing to secure regulatory approval and reimbursements in additional markets.
Summary of Financial Results
LabStyle’s billings for 2015 amounted to approximately $1,152,000, a 694% increase compared to approximately $145,000 in 2014. This includes product shipments to distributors and direct customers, as well as services provided with respect to LabStyle’s patient management software platform launch as part of the partnership with Israel’s leading healthcare HMO, Maccabi Healthcare. Sequential quarterly shipments to distribution partners and customers of products and software services increased 61% from $292,000 in the third quarter of 2015 to $470,000 in the fourth quarter of 2015.
LabStyle’s revenues for 2015 amounted to approximately $823,000 compared to approximately $51,000 in 2014. Fourth quarter revenues for 2015 amounted to approximately $308,000 compared to approximately $273,000 in the third quarter of 2015.
Deferred revenues amounted to approximately $31,000 at December 31, 2015, compared to approximately $24,000 at December 31, 2014.
GAAP net loss attributable to holders of common stock, as detailed in the table below decreased by approximately $8,759,000, or 55%, to approximately $7,296,000 in 2015, compared to approximately $16,055,000 GAAP net loss attributable to holders of common stock in 2014. GAAP net loss attributable to holders of common stock for the fourth quarter of 2015 was $1,672,000, narrowing by 9% quarter-over-quarter as compared to $1,829,000 in the third quarter of 2015.
Non-GAAP adjusted EBITDA for 2015, as detailed in the table below, decreased by approximately $2,988,000, or 35%, to approximately $5,640,000 for 2015, compared to approximately $8,628,000 Non-GAAP adjusted EBIDTA in 2014.
As of December 31, 2015 cash and cash equivalents amounted to approximately $2,671,000.
Note on Non-GAAP Measures
Readers should note that LabStyle has, in certain disclosures above and in the schedule below, supplemented its GAAP net loss with a Non-GAAP measure of adjusted EBITDA. Management believes that this Non-GAAP financial measure provides useful supplemental information to management and investors regarding LabStyle’s performance, facilitates a more meaningful comparison of results for the current period with previous operating results, and assists management in analyzing future trends, making strategic and business decisions and establishing internal budgets and forecasts. A reconciliation of Non-GAAP adjusted EBIDTA to GAAP net loss, the most directly comparable GAAP measure is provided in the schedule below.
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