Needham & Company Remains on Sidelines with Mazor Robotics (MZOR) Until Consistent Execution Observed

Needham & Company affirms Mazor Robotics (Nasdaq: MZOR) at Hold following the latest Renaissance system sales data.

Analyst Mike Matson commented, Earlier today, MZOR announced that it sold seven Renaissance Systems and one system upgrade in 2Q15, representing both a sequential and Y/Y increase. This was above our estimate of five and we estimate that consensus was also at five systems. While we expect MZOR to beat consensus estimates, we do note that through 2Q, MZOR has sold 10 systems compared to 9 systems through 2Q last year. Six systems were sold in the US and one system was sold in Spain. While we are encouraged by the increased system sales, we would like to see several quarters of consistent execution before concluding that MZOR can deliver sustained growth in system placements.

Boosting estimates: Since MZOR beat our system estimate, we have raised our 2Q15E revenue to $7.2M from $5.8M and our 2Q15E EPS to ($0.09) from ($0.11). Similarly, we have raised 2015E and 2016E revenue to $26.5M from $25.0M and to $31.5M from $31.3M, respectively. We have raised our 2015E system unit sales to 24 from 22 and have kept our 2016 unit estimate at 27. We have raised our 2015E and 2016E EPS to ($0.41) from ($0.43) and to ($0.38) from ($0.42), respectively.

For an analyst ratings summary and ratings history on Mazor Robotics click here. For more ratings news on Mazor Robotics click here.

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