Ra Medical Systems (RMED) Misses Q3 EPS by 32c, Revenues Miss

Ra Medical Systems (NYSE: RMED) reported Q3 EPS of ($1.30), $0.32 worse than the analyst estimate of ($0.98). Revenue for the quarter came in at $1.9 million versus the consensus estimate of $2.06 million.

Third Quarter Financial Highlights

• Net revenue for the third quarter of 2019 was $1.9 million, which consisted of product sales of $1.1 million and service and other revenue of $0.8 million. This compares with net revenue of $2.1 million for the third quarter of 2018, which consisted of product sales of $1.3 million and service and other revenue of $0.8 million.
• Net revenue from the vascular segment for the third quarter of 2019 was $0.2 million, compared with $0.8 million for the third quarter of 2018. Net revenue from the dermatology segment for the third quarter of 2019 was $1.7 million, compared with $1.3 million for the third quarter of 2018.
• Total cost of revenue for the third quarter of 2019 was $2.4 million, compared with $1.3 million for the third quarter of 2018.
• Selling, general and administrative expenses for the third quarter of 2019 were $15.9 million, which included $6.6 million in stock-based compensation expense compared with $5.4 million for the third quarter of 2018, which included $1.4 million in stock-based compensation expense. Research and development expenses for the third quarter of 2019 were $1.2 million, which included $0.3 million in stock-based compensation expense, compared with $0.2 million for the third quarter in 2018, which included $0.1 million in stock-based compensation expense.
• The net loss for the third quarter of 2019 was $17.4 million, or $1.30 per share, compared with a net loss for the third quarter of 2018 of $4.8 million, or $0.59 per share.
• Adjusted EBITDA for the third quarter of 2019 was negative $9.9 million, compared with adjusted EBITDA of negative $3.1 million for the third quarter of 2018. Adjusted EBITDA is a non-GAAP measure presented as net loss before depreciation and amortization expense, interest income, interest expense, income taxes and stock-based compensation expense. For additional information regarding the non-GAAP financial measures discussed in this news release, please see "Non-GAAP Reconciliations" below.
• Ra Medical reported cash, cash equivalents and short-term investments of $40.5 million as of September 30, 2019.

Recent Operational Highlights

• Launched the new Pharos, Optimized dermatology laser (July 2019), which delivers extended peak performance and faster treatment times.
• Announced the publication of a case report in Endovascular Today (August 2019) by Rajesh M. Dave, MD, in which a complex clinical challenge of isolated popliteal artery disease was successfully tackled with excimer laser photoablation and percutaneous balloon angioplasty.
• Announced the publication of a case report in Endovascular Today (September 2019) by Mubashar Choudry, MD, FACC, Rashid A Chotani, MD, MPH, FRCPH, James Rothstein, MD, and Amit Kumar Rajvanshi, MD, entitled “Severe Common Femoral Artery Disease and Failed Femoropopliteal Artery Graft: Amputation avoided through use of DABRA excimer laser in an OBL setting.”

For earnings history and earnings-related data on Ra Medical Systems (RMED) click here.

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