The Caesarea, Israel-based robot-assisted surgery company posted losses of -$3.7 million, or -7¢ per share, on sales of $17.2 million for the three months ended Sept. 30, cutting red ink by -30.1% on sales growth of 125.4% compared with Q3 2016.*
Adjusted to exclude one-time items, losses per share were -2¢, a full 24¢ ahead of the consensus on The Street, where analysts were looking for sales of $16.7 million.
“We delivered record quarterly revenue and more than doubled last year’s Q3 results,” CEO Ori Hadomi said in prepared remarks. “Our performance demonstrates that we are executing our objectives to drive market penetration and increased utilization of our systems. We entered the next phase with Medtronic, our commercial partner, for the Mazor X system and the smooth transition ensures continued sales momentum while significantly lowering our operating costs beginning Q4 2017. In addition to the operational achievements, the recent prospective data results that were presented at NASS are a game changer for Mazor as it validates the strength of our proprietary Mazor Core technology and reinforces the patient value and economic proposition of our systems.”
MZOR shares were up 2.3% to $62.70 apiece today in pre-market trading.
In September, Mazor won CE Mark approval in the European Union for its Mazor X robot-assisted surgery platform, days after closing the third, $40 million tranche of a deal with Medtronic (NYSE:MDT), which is due to take on exclusive global distribution rights for Mazor X.
It’s the third investment in the Israeli surgical robotics concern for Fridley, Minn.-based Medtronic, taking its total investment to a $72 million, 10.6% stake in Mazor. The deal also includes 1.21 million warrants priced at $44.23 apiece; if exercised in full Medtronic would own a 14.2% stake in Mazor, having invested some $125 million.
* Due to a reporter’s error, this article originally stated Mazor’s nine-month results rather than its third-quarter numbers. ↩