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Shockwave Medical Reports Third Quarter 2019 Financial Results

968 Days ago

SANTA CLARA, Calif., Nov. 07, 2019 (GLOBE NEWSWIRE) -- Shockwave Medical, Inc. (Nasdaq: SWAV), a pioneer in the development and commercialization of Intravascular Lithotripsy (IVL) to treat complex calcified cardiovascular disease, today reported financial results for the three months ended September 30, 2019.

Recent Highlights

  • Recognized revenue of $11.3 million for the third quarter of 2019, representing a 215% increase over the third quarter of 2018
  • Received Breakthrough Device Designation from the U.S. Food and Drug Administration (FDA) for IVL System with the C2 Coronary IVL Catheter, which is currently the subject of the DISRUPT CAD III Investigational Device Exemption (IDE) study designed to support FDA approval
  • Unveiled results of the DISRUPT CAD II European post-market study of Coronary IVL at recent Transcatheter Cardiovascular Therapeutics (TCT) conference, confirming the low complication rates and strong safety and performance from the DISRUPT CAD I study
  • Commenced full commercial launch of the S4 device at the Vascular Interventional Advances (VIVA) 2019 Annual Conference
  • Initiated CAD IV study of Coronary IVL in Japan

“Our third quarter performance was marked by many key accomplishments as our team continues to deliver solid, balanced, results across our domestic and international businesses,” said Doug Godshall, President and Chief Executive Officer of Shockwave Medical. “Additionally, we have achieved several important operational successes, including doubling the number of patients enrolled in CAD III since last quarter, initiating our CAD IV study in Japan and completing the full launch of our S4 device to safely address the large number of patients who suffer from below the knee peripheral disease. We look forward to building on this progress as we continue our efforts to positively impact patient outcomes worldwide.”

Third Quarter 2019 Financial Results 
Revenue for the third quarter of 2019 was $11.3 million, an increase of $7.7 million, or 215%, compared to the third quarter of 2018. The growth was primarily driven by the expansion of the U.S. salesforce and international distributor network.

Gross profit for the third quarter of 2019 was $6.9 million compared to $1.6 million for the third quarter of 2018. The gross margin percentage for the third quarter of 2019 increased to 61% compared to 45% in the third quarter of 2018, driven primarily by continued improvements in production processes and greater absorption of fixed costs by higher production. 

Operating expenses were $20 million for the third quarter of 2019 compared to $11.7 million in the corresponding prior year period, an increase of 71%, primarily driven by salesforce expansion and higher clinical costs from the CAD III IDE and CAD IV Japan studies.

Net loss was $13 million in the third quarter of 2019, as compared to $10.2 million in the corresponding period of the prior year. Net loss per share was $0.46 in the third quarter of 2019.

Cash, cash equivalents and short-term investments totaled $114.1 million as of September 30, 2019.

2019 Financial Guidance
Shockwave Medical projects revenue for the full year 2019 to range from $41 million to $42 million, which would represent 234% to 242% growth over the company’s prior year revenue.

Conference Call
Shockwave Medical will host a conference call at 1:30 p.m. Pacific Time / 4:30 p.m. Eastern Time on Thursday, November 7, 2019 to discuss its third quarter 2019 financial results. The call may be accessed through an operator by calling (866) 795-9106 for domestic callers and (470) 495-9173 for international callers using conference ID number 1427729. A live and archived webcast of the event will be available at https://ir.shockwavemedical.com/

About Shockwave Medical, Inc.
Shockwave Medical is focused on developing and commercializing products intended to transform the treatment of calcified vascular disease by establishing a new standard of care with Intravascular Lithotripsy (IVL). IVL seeks to minimize trauma within the artery by delivering pulsatile sonic pressure waves locally to fracture both intimal and medial calcium in the artery wall, but pass through surrounding soft vascular tissue in a safe manner. To view an animation of the IVL procedure and for more information, visit www.shockwavemedical.com.

Forward-Looking Statements
This press release contains statements relating to Shockwave’s expectations, projections, beliefs, and prospects (including statements regarding Shockwave’s financial and business outlook), which are “forward-looking statements” within the meaning of the federal securities laws and by their nature are uncertain. Words such as “believe,” “may,” “will,” “estimate,” “continue,” “anticipate,” “intend,” “expect,” “plans,” and similar expressions are intended to identify forward-looking statements. Such forward-looking statements are not guarantees of future performance, and you are cautioned not to place undue reliance on these forward-looking statements. Our business and operations are subject to a variety of risks and uncertainties and, consequently, actual results may differ materially from those projected by any forward-looking statements. Factors that could cause actual results to differ from those projected include, but are not limited to: failure to achieve or sustain profitability; failure to effectively market existing products; failure to effectively introduce and market new products; delays in product introductions; significant competition; inability to further penetrate our current customer base and increase the frequency of use of our products by our customers; inability to achieve or maintain satisfactory pricing and margins; manufacturing difficulties; the inability to attain coverage and adequate reimbursement for procedures using our products; permanent write-downs or write-offs of our inventory; product defects or failures; unfavorable outcomes in clinical trials; inability to maintain our culture as we grow; fluctuations in foreign currency exchange rates; potential adverse regulatory actions; and potential impact of any future acquisitions, mergers, dispositions, joint ventures or investments we may make. These risks and uncertainties, as well as others, are discussed in greater detail in our filings with the Securities and Exchange Commission (SEC), including under the section entitled “Risk Factors” in our prospectus dated March 6, 2019. There may be additional risks of which we are not presently aware or that we currently believe are immaterial which could have an adverse impact on our business. Any forward-looking statements are based on our current expectations, estimates and assumptions regarding future events and are applicable only as of the dates of such statements. We make no commitment to revise or update any forward-looking statements in order to reflect events or circumstances that may change.

Investor Contact:
Debbie Kaster, Gilmartin Group


Balance Sheet Data  
(in thousands)  
    September 30,
  December 31,
Cash and cash equivalents   $ 39,452     $ 39,643    
Short-term investments     74,646          
Accounts receivable, net     5,551       2,850    
Inventory     9,227       5,131    
Prepaid expenses and other current assets     2,199       1,112    
Total current assets     131,075       48,736    
Operating lease right-of-use assets     2,155          
Property and equipment, net     4,111       2,619    
Other assets     548       2,066    
TOTAL ASSETS   $ 137,889     $ 53,421    
Accounts payable   $ 2,486     $ 1,487    
Term notes, current portion     6,667       1,667    
Accrued liabilities     9,496       6,217    
Lease liability, current portion     742          
Total current liabilities     19,391       9,371    
Lease liability, noncurrent     1,543          
Term notes, noncurrent portion     8,705       13,383    
Convertible preferred stock warrant liability           313    
Other liabilities           136    
TOTAL LIABILITIES     29,639       23,203    
Convertible preferred stock           152,806    
Preferred stock              
Common stock     28       2    
Additional paid-in capital     271,394       4,275    
Accumulated other comprehensive loss     57          
Accumulated deficit     (163,229 )     (126,865 )  
TOTAL STOCKHOLDERS’ EQUITY (DEFICIT)     108,250       (122,588 )  
  $ 137,889     $ 53,421    

Statement of Operations Data  
(in thousands, except share and per share data)  
    Three Months Ended
September 30,
  Nine Months Ended
September 30,
      2019       2018       2019       2018    
Product revenue   $ 11,333     $ 3,600     $ 28,615     $ 7,201    
Operating expenses:                  
Cost of product revenue     4,401       1,973       11,606       3,946    
Research and development     8,368       5,533       22,778       16,579    
Sales and marketing     8,192       4,801       21,023       12,611    
General and administrative     3,437       1,369       9,684       4,137    
Total operating expenses     24,398       13,676       65,091       37,273    
Loss from operations     (13,065 )     (10,076 )     (36,476 )     (30,072 )  
Interest expense     (251 )     (158 )     (746 )     (216 )  
Change in fair value of warrant liability           (104 )     (609 )     (53 )  
Other income, net     385       166       1,518       489    
Net loss before taxes     (12,931 )     (10,172 )     (36,313 )     (29,852 )  
Income tax provision     26       6       51       27    
Net loss   $ (12,957 )   $ (10,178 )   $ (36,364 )   $ (29,879 )  
Net loss per share, basic and diluted   $ (0.46 )   $ (5.73 )   $ (1.66 )   $ (17.15 )  
Shares used in computing net loss per share, basic and diluted     28,085,821       1,776,249       21,886,396       1,742,572    

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