Myomo Reports Second Quarter 2019 Results

Myomo, Inc. (NYSE American: MYO) (“Myomo” or the “Company”), a wearable medical robotics company that offers increased functionality for those suffering from neurological disorders and upper limb paralysis, today announced its financial results for the second quarter ended June 30, 2019.

Recent Highlights and Accomplishments:

  • Revenues for the second quarter 2019 of approximately $880,000 increased by 39% versus the comparable period of 2018, and Year-to-Date revenues of approximately $1,710,000 increased by 81% over the comparable period in 2018. Gross margin for the quarter was 72%, compared to 68% in the second quarter of 2018.
  • The Company’s reimbursement pipeline contained 453 MyoPro units as of June 30, 2019, up 28% from 354 units at the end of the first quarter 2019 as the Company expanded its direct-to-patient marketing efforts.
  • The Company is now obtaining reimbursements from the largest provider of Medicare Advantage insurance policies in the U.S.
  • The Company expanded its international distribution network and received the first orders from O&P providers in Germany, Denmark, and Chile.

“We continue to see strong demand from patients and successful reimbursements for the MyoPro product line, which have resulted in quarterly revenue growth and an increasing backlog of insurance approvals and orders that will convert into revenue in the coming months. The online marketing, screening days, and broader geographic coverage – in the US and several overseas markets – is also working to build up the pipeline of future orders,” said Paul R. Gudonis, Chairman and CEO of Myomo. “A year ago, we had 92 MyoPro units in the reimbursement process; a year later that number has climbed to 453, a nearly 5-fold increase which we continue to expect will lead to significant revenue growth in 2019.”

Financial Results

For the Three Months
Ended June 30,

Period-to-Period
Change

For the Six Months
Ended June 30,

Period-to-Period
Change

2019

2018

$

%

2019

2018

$

%

Revenue

$

880,349

$

632,369

$

247,980

39

%

$

1,710,415

$

945,548

$

764,867

81

%

Cost of revenue

250,676

200,446

50,230

25

%

426,863

308,526

118,337

38

%

Gross margin

$

629,673

$

431,923

$

197,750

46

%

$

1,283,552

$

637,022

$

646,530

101

%

Gross margin%

72

%

68

%

4

%

75

%

67

%

8

%

Total revenue in the second quarter 2019 was approximately $880,000, an increase of 39%, versus the comparable period of 2018. Total revenue for the six months ended June 30, 2019 was approximately $1,710,000, an increase of 81%, versus the comparable period of 2018. Our results for the three and six months ended June 30, 2019, included higher unit volumes, offset by lower average selling prices due in part to higher sales to distributors.

Gross margin was 72% and 68% for the quarter ended June 30, 2019 and 2018. Gross margin was 75% and 67% for the six months ended June 30, 2019 and 2018.

Operating expenses were approximately $3,336,000, an increase of $222,000, or 7%, during the three months ended June 30, 2019, versus the comparable period of 2018. Operating expenses were approximately $6,673,000, an increase of $951,000, or 17%, during the six months ended June 30, 2019. The increases in our operating expenses primarily reflect higher compensation costs associated with the addition of personnel, marketing and product development efforts, and increased spending to secure reimbursement.

The Company’s net loss for the quarter ended June 30, 2019 was approximately $2,565,000, or ($0.15) per share, compared with a net loss of approximately $2,630,000, or ($0.21) per share for the corresponding period of 2018. Net loss for the six months ended June 30, 2019 was approximately $5,163,000, or ($0.32) per share, compared with a net loss of approximately $4,975,000 or ($0.41) per share for the corresponding period of 2018.

Adjusted EBITDA1 for the quarter ended June 30, 2019 was a loss of approximately $2,486,000, compared with a loss of approximately $2,512,000 for the corresponding period in 2018. Adjusted EBITDA for the six months ended June 30, 2019 was a loss of approximately $4,751,000, compared with a loss of approximately $4,564,000 for the corresponding period of 2018. A reconciliation of GAAP net loss to this non-GAAP financial measure has been provided in the financial statement tables included in this press release. An explanation of this measure is also included below under the heading “Non-GAAP Financial Measures.”

Liquidity

Cash on hand at June 30, 2019 was approximately $6,669,000. Cash burn in the second quarter slowed to $2.6 million, compared to $3.0 million in the first quarter of 2019.

Conference Call and Webcast Information

Myomo will hold a conference call today, August 8, 2019 at 4:30 p.m. EDT. To access the conference call, please dial 1-877-270-2148 from the U.S. or 1-412-902-6510 internationally. Our webcast can also be accessed through Myomo’s Investor Relationspage. Please allow extra time prior to the call to visit the site and download any necessary software to listen to the live broadcast.

A replay of the conference call will be available approximately one hour after completion of the live conference call at the Investor Relations page. A dial-in replay of the call will be available until August 22, 2019; please dial 1-877-344-7529 from the U.S. or 1-412-317-0088 internationally and provide the passcode of 10133890. – Business Wire

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