Glaukos Corporation Announces Third Quarter 2018 Financial Results
Business Wire 7-Nov-2018 4:10 PM
Glaukos Corporation (NYSE:GKOS), an ophthalmic medical technology and
pharmaceutical company focused on the development and commercialization
of novel surgical devices and sustained pharmaceutical therapies
designed to transform the treatment of glaucoma, today announced
financial results for the third quarter ended September 30, 2018. Key
highlights include:
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Achieved 9% net sales growth to $43.9 million in the third quarter of
2018, compared to $40.4 million in the third quarter of 2017.
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Reported gross margin of approximately 86% in the third quarter of
2018, compared to approximately 86% in the third quarter of 2017.
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Raised 2018 net sales guidance to $175 million to $177 million, versus
previous guidance of $162 million to $166 million.
"Glaukos achieved important milestones in the third quarter, delivering
record net sales and commencing the U.S. commercial launch of our
next-generation iStent inject® Trabecular
Micro-Bypass System," said Thomas Burns, Glaukos president and chief
executive officer. "Our progress demonstrates continued successful
execution of our core growth strategies, including delivering our
comprehensive pipeline of novel, micro-scale glaucoma therapies and
expanding the reach of our global sales operations. As the pioneer and
corporate founder of Micro-Invasive Glaucoma Surgery, we remain fully
focused on building this new treatment class with reliable products that
offer ophthalmic surgeons and their patients compelling treatment
options."
Third Quarter 2018 Financial Results
Net sales rose 9% in the third quarter of 2018 to $43.9 million,
compared to $40.4 million in the same period in 2017.
Gross margin for the third quarter of 2018 was approximately 86%,
compared to approximately 86% in the same period in 2017.
Operating expenses for the third quarter of 2018 rose 32% to $44.8
million, compared to $33.9 million in the same period in 2017. The
year-over-year increase reflected primarily growth in domestic sales,
marketing and administrative personnel and expenses, the company's
ongoing expansion of its global direct sales infrastructure, and
increased spending associated with pharmaceutical research and clinical
trials.
Loss from operations in the third quarter of 2018 was $6.9 million
compared to operating income of $0.7 million in the third quarter of
2017. Net loss in the third quarter of 2018 was $6.6 million, or $0.19
per diluted share, compared to net income of $1.3 million, or $0.04 per
diluted share, in the third quarter of 2017.
2018 Revenue Guidance
The company raised its 2018 net sales guidance to $175 million to $177
million, versus previous guidance of $162 million to $166 million.
Webcast & Conference Call
The company will host a conference call and simultaneous webcast today
at 1:30 p.m. PST (4:30 p.m. EST) to discuss the results and provide
additional information about the company's financial outlook. A link to
the webcast is available on the company's website at http://investors.glaukos.com.
To participate in the conference call, please dial 833-231-8262 (U.S.)
or 647-689-4107 (international) and enter Conference ID 6967477. A
replay of the webcast will be archived on the company's website
following completion of the call.
About Glaukos
Glaukos (www.glaukos.com)
is an ophthalmic medical technology and pharmaceutical company focused
on the development and commercialization of novel surgical devices and
sustained pharmaceutical therapies designed to transform the treatment
of glaucoma, one of the world's leading causes of blindness. The company
pioneered Micro-Invasive Glaucoma Surgery, or MIGS, to revolutionize the
traditional glaucoma treatment and management paradigm. Glaukos launched
the iStent Trabecular Micro-Bypass Stent, its first MIGS device,
in the United States in July 2012 and is leveraging its platform
technology to build a comprehensive and proprietary portfolio of
micro-scale injectable therapies designed to address the complete range
of glaucoma disease states and progression. The company believes the iStent
inject is the smallest medical device ever approved by the FDA.
Forward-Looking Statements
All statements other than statements of historical facts included in
this press release that address activities, events or developments that
we expect, believe or anticipate will or may occur in the future are
forward-looking statements. Although we believe that we have a
reasonable basis for forward-looking statements contained herein, we
caution you that they are based on current expectations about future
events affecting us and are subject to risks, uncertainties and factors
relating to our operations and business environment, all of which are
difficult to predict and many of which are beyond our control, that may
cause our actual results to differ materially from those expressed or
implied by forward-looking statements in this press release. These
potential risks and uncertainties include, without limitation,
uncertainties about our dependence on the success and market acceptance
of the iStent and the iStent inject; our ability to
leverage our sales and marketing infrastructure to increase market
penetration and acceptance of our products both in the United States and
internationally; our ability to bring our pipeline products to market;
our dependence on a limited number of third-party suppliers, some of
which are single-source, for components of our products; the occurrence
of a crippling accident, natural disaster or other disruption at our
primary facility, which may materially affect our manufacturing capacity
and operations; maintaining adequate coverage or reimbursement by
third-party payors for procedures using the iStent, the iStent
inject or other products in development; our ability to properly
train, and gain acceptance and trust from, ophthalmic surgeons in the
use of our products; our ability to successfully develop and
commercialize additional products; our ability to compete effectively in
the highly competitive and rapidly changing medical device industry and
against current and future competitors (including MIGS competitors) that
are large public companies or divisions of publicly traded companies
that have competitive advantages; the timing, effect and expense of
navigating different regulatory approval processes as we develop
additional products and penetrate foreign markets; the impact of any
product liability claims against us and any related litigation; the
effect of the extensive and increasing federal and state regulation in
the healthcare industry on us and our suppliers; the lengthy and
expensive clinical trial process and the uncertainty of timing and
outcomes from any particular clinical trial; our ability to protect, and
the expense and time-consuming nature of protecting, our intellectual
property against third parties and competitors that could develop and
commercialize similar or identical products; the impact of any claims
against us of infringement or misappropriation of third party
intellectual property rights and any related litigation; and the
market's perception of our limited operating history as a public
company. These and other known risks, uncertainties and factors are
described in detail under the caption "Risk Factors" and elsewhere in
our filings with the Securities and Exchange Commission, including our
Annual Report on Form 10-K for 2017 and will also be included in our
Quarterly Report on Form 10-Q for the quarter ended September 30, 2018,
which we expect to file on or before November 9, 2018. Our filings with
the Securities and Exchange Commission are available in the Investor
Section of our website at www.glaukos.com
or at www.sec.gov.
In addition, information about the risks and benefits of our products is
available on our website at www.glaukos.com.
All forward-looking statements included in this press release are
expressly qualified in their entirety by the foregoing cautionary
statements. You are cautioned not to place undue reliance on the
forward-looking statements in this press release, which speak only as of
the date hereof. We do not undertake any obligation to update, amend or
clarify these forward-looking statements whether as a result of new
information, future events or otherwise, except as may be required under
applicable securities law.
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GLAUKOS CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(unaudited)
(in thousands, except per share amounts)
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Three Months Ended September 30,
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Nine Months Ended
September 30,
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2018
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2017
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2018
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2017
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Net sales
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$
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43,908
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$
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40,412
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$
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127,202
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$
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117,604
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Cost of sales
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6,011
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5,718
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17,957
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16,420
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Gross profit
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37,897
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34,694
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109,245
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101,184
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Operating expenses:
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Selling, general and administrative
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31,632
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24,141
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87,425
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70,297
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In-process research and development
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-
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-
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-
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5,320
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Research and development
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13,202
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9,805
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36,719
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28,380
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Total operating expenses
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44,834
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33,946
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124,144
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103,997
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(Loss) income from operations
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(6,937
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)
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748
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(14,899
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)
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(2,813
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)
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Non-operating income:
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Interest income
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583
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335
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1,568
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945
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Other (expense) income, net
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(230
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)
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295
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(1,346
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)
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900
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Total non-operating income
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353
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630
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222
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1,845
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(Loss) income before taxes
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(6,584
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)
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1,378
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(14,677
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)
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(968
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)
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Provision for income taxes
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37
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53
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53
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130
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Net (loss) income
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$
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(6,621
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)
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$
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1,325
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$
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(14,730
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)
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$
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(1,098
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)
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Basic net (loss) income per share
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$
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(0.19
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)
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$
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0.04
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$
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(0.42
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)
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$
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(0.03
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)
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Diluted net (loss) income per share
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$
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(0.19
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)
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$
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0.04
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$
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(0.42
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)
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$
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(0.03
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)
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Weighted average shares used to compute basic net (loss) income
per share
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35,541
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34,472
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35,075
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34,314
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Weighted average shares used to compute diluted net (loss) income
per share
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35,541
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37,654
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35,075
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34,314
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GLAUKOS CORPORATION
CONDENSED CONSOLIDATED BALANCE SHEETS
(in thousands, except par values)
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September 30,
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December 31,
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2018
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2017
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(unaudited)
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Assets
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Current assets:
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Cash and cash equivalents
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$
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37,278
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$
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24,508
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Short-term investments
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100,555
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94,506
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Accounts receivable, net
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19,659
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16,656
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Inventory, net
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13,537
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11,222
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Prepaid expenses and other current assets
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4,218
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2,568
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Total current assets
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175,247
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149,460
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Property and equipment, net
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12,298
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11,794
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Intangible assets, net
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393
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3,147
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Deferred tax asset, net
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235
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235
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Deposits and other assets
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2,327
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1,200
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Total assets
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$
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190,500
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$
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165,836
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Liabilities and stockholders' equity
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Current liabilities:
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Accounts payable
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$
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5,595
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$
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6,244
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Accrued liabilities
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19,066
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20,449
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Deferred rent
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110
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95
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Total current liabilities
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24,771
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26,788
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Other liabilities
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2,322
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|
846
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Total liabilities
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27,093
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27,634
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Stockholders' equity:
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Preferred stock, $0.001 par value; 5,000 authorized; no shares
issued and outstanding
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-
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-
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Common stock, $0.001 par value; 150,000 authorized; 35,995 and
34,647 shares issued and 35,967 and 34,619 shares outstanding at
September 30, 2018 and December 31, 2017, respectively
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36
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|
|
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35
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Additional paid-in capital
|
|
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369,709
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|
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331,073
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Accumulated other comprehensive income (loss)
|
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707
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|
|
|
(591
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)
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Accumulated deficit
|
|
|
(206,913
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)
|
|
|
(192,183
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)
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Less treasury stock (28 shares as of September 30, 2018 and December
31, 2017)
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|
|
(132
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)
|
|
|
(132
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)
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Total stockholders' equity
|
|
|
163,407
|
|
|
|
138,202
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Total liabilities and stockholders' equity
|
|
$
|
190,500
|
|
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$
|
165,836
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View source version on businesswire.com: https://www.businesswire.com/news/home/20181107005802/en/
