MENLO PARK, Calif., Dec. 2, 2014 /PRNewswire/ -- Nevro Corp. (NYSE:NVRO), a medical device company that has developed and commercialized an innovative, evidence-based neuromodulation platform for the treatment of chronic pain, today reported financial results for the three and nine months ended September 30, 2014.
Recent Accomplishments & Highlights:
- Achieved record revenue of $8.7 million in the third quarter of 2014, an increase of 40% over the same period of the prior year
- Completed initial public offering, receiving net proceeds of approximately $131 million
- Secured a $50 million credit facility
- Leading clinical investigators scheduled to present SENZA-RCT clinical trial results at the North American Neuromodulation Society (NANS) meeting on December 12, 2014
“We are pleased with our performance in the third quarter, in which our record revenue was driven by continued adoption of our Senza spinal cord stimulation system outside the U.S. We also recently completed our successful initial public offering and secured a credit facility, which together will provide us the capital to fund our growth and strategic objectives,” said Michael DeMane, Chairman and Chief Executive Officer. “We look forward to the NANS meeting, where we will present results from the first ever randomized, controlled, pivotal trial to show comparative efficacy data in spinal cord stimulation.”
Third Quarter Financial Results
Revenue for the three months ended September 30, 2014 increased 40% to $8.7 million, from $6.2 million during the same period of the prior year. This increase was primarily attributable to continued adoption of the Senza system in the markets where it is available.
Gross profit for the third quarter of 2014 was $5.9 million, or 68% gross margin, up from $3.7 million, or 60% gross margin, in the same period of the prior year. The increase in gross margin was primarily due to higher sales revenue coupled with a decrease in the cost of revenue as a percentage of sales, reducing the overall cost per unit.
Operating expenses for the third quarter of 2014 were $12.4 million, an increase of 37% compared to the same period of the prior year. The increase in operating expenses was driven primarily by increased headcount and related personnel costs, as well as expenses incurred in preparation for becoming a publicly-traded company.
Loss from operations for the third quarter of 2014 was $6.5 million, compared to $5.4 million for the same period of the prior year.
Cash, cash equivalents, and short-term investments were $33.7 million as of September 30, 2014. In November 2014, we completed an initial public offering, raising net proceeds of approximately $131.3 million, after deducting underwriting discounts and commissions and offering expenses. In October 2014, we submitted a notice to draw down $20.0 million under our credit facility, which we expect to receive in December 2014 net of closing fees of $0.5 million.
Conference Call
Management will host an investment community conference call today beginning at 1:30 p.m. PT / 4:30 p.m. ET. Individuals interested in listening to the conference call may dial (877) 201-0168 for domestic callers, or (647) 788-4901 for international callers (Conference ID: 35088865), or access the webcast on the “Investors” section of the Company’s web site at: www.nevro.com. The webcast will be available on the Company’s web site for two weeks following the completion of the call.
About Nevro Corp.
Headquartered in Menlo Park, California, Nevro Corp. is a medical device company focused on providing innovative products that improve the quality of life of patients suffering from debilitating chronic pain. Nevro has developed and commercialized the Senza® spinal cord stimulation (SCS) system, an evidence-based neuromodulation platform for the treatment of chronic pain. The Senza system is the only SCS system that delivers Nevro’s proprietary HF10 therapy. In the United States, the Senza system is limited by federal law to investigational use only. Senza, HF10, Nevro and the Nevro logo are trademarks of Nevro Corp.
Forward-Looking Statements
In addition to the historical information, this press release contains forward-looking statementswith respect to our business, capital resources, strategic initiatives and growth reflecting the current beliefs and expectations of management made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995, including regarding future drawdowns and receipt of funds under our credit facility, our presentation of results from our SENZA-RCT pivotal study,and our beliefs regarding capital necessary to fund our growth and strategic objectives. These forward-looking statements are based upon information that is currently available to us or our current expectations, speak only as of the date hereof, and are subject to numerous risks and uncertainties, including our ability to successfully commercialize our products; the timing of FDA marketing approval of Senza in the U.S. and our U.S. commercial launch of Senza, if any; our ability to manufacture our products to meet demand; the level and availability of third party payor reimbursement for our products; our ability to effectively manage our anticipated growth; our ability to protect our intellectual property rights and proprietary technologies; our ability to operate our business without infringing the intellectual property rights and proprietary technology of third parties; competition in our industry; additional capital and credit availability; our ability to attract and retain qualified personnel; and product liability claims.
To read full press release, please click here.
Help employers find you! Check out all the jobs and post your resume.
