TransEnterix (TRXC) Q2 Revenue Expected to be $6-$6.3 Million

TransEnterix, Inc. (NYSE American: TRXC), a medical device company that is digitizing the interface between surgeons and patients to improve minimally invasive surgery, today provided a corporate update, including the announcement of the sale of an additional Senhance system as well as preliminary unaudited revenue for the second quarter ended June 30, 2018.

“We had a strong second quarter as we continued to drive sales of Senhance globally while at the same time making significant progress towards our 2018 goals, including the expansion of Senhance’s indications for use and portfolio of instruments,” said Todd M. Pope, President and CEO at TransEnterix. “We look forward to continuing to build upon the momentum we developed during the first half of the year to drive the widespread adoption of Senhance.”

Second Quarter Senhance System Sales

In June of 2018, the Company sold a Senhance System to an end user hospital through a distributor in the Company’s EMEA (Europe, Middle East, and Africa) region. This sale represents the fourth system sale during the second quarter of 2018, three of which (two in the EMEA region, one in the U.S.) have been previously announced.

Preliminary Second Quarter Revenue

Preliminary unaudited second quarter revenue is expected to be in the range of $6.0 million to $6.3 million, up from $1.5 million in the second quarter of 2017.

Indication Expansion

On May 29, 2018, the Company received FDA 510(k) clearance for expanded indications of its Senhance System for laparoscopic inguinal hernia and laparoscopic cholecystectomy (gallbladder removal) surgery. There are approximately 760,000 inguinal hernia and 1.2 million laparoscopic cholecystectomy procedures performed annually in the U.S. With this clearance, Senhance System's total addressable annual procedures in the U.S. has more than doubled to over three million.

Instrument Portfolio Expansion

On June 7, 2018, the Company announced that it had filed an FDA 510(k) submission for additional Senhance System instruments, including 3 millimeter diameter instruments.

Balance Sheet

On May 23, 2018, the Company entered into a loan and security agreement providing the company with up to $40.0 million in term loans. The initial tranche of the term loan, $20 million, was received at closing. The Company will be eligible to draw on the second tranche of $10 million upon achievement of certain Senhance System revenue-related milestones for its 2018 fiscal year, and a third tranche of $10 million upon achievement of designated trailing six months GAAP net revenue from Senhance sales. On the date of closing, the Company repaid all amounts owed under their previous loan provider.

Preliminary unaudited cash and cash equivalents as of June 30, 2018 was approximately $98 million.

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