VRAY - ViewRay stock dips after prelim Q1 revenue miss outlook cut; explores options

2023-04-13 06:36:09 ET

ViewRay ( NASDAQ: VRAY ) reduced its revenue outlook for fiscal 2023 and said it will explore strategic alternatives, including a corporate sale, merger or business combination.

The medical device maker made the announcement alongside reporting its preliminary financial results for Q1 2023.

Total preliminary revenue for Q1 was ~$23M, coming below Consensus Revenue Estimates of $24.69M.

The company said the total revenue of ~$23M was mainly from three revenue units, compared to ~$19M, primarily from three revenue units in Q1 2022.

Net loss widened to about -$29M, compared to about -$26M Q1 2022.

Adjusted EBITDA was a loss of about ~$25M, compared to about -$21M in the prior year period.

Total backlog increased to ~$411M as of March 31, 2023, compared to ~$331M as of March 31, 2022.

"However, the first quarter was hindered by global macroeconomic headwinds. The timing of new installations and the corresponding payment schedules have increased the need to extend our working capital balances," said ViewRay President and CEO.

Outlook FY2023 :

ViewRay cut its revenue guidance range to 0% to 15% growth for fiscal 2023, compared to its previous outlook range of 25% to 40%.

The adjusted EBITDA outlook range was updated to a loss of -$75M to -$85M for fiscal 2023, compared to its previous outlook range of -$70M to -$80M.

ViewRay said the updated outlook was based on delayed installation schedules and growing financial pressures impacting delivery schedule, mainly for international distributors.

The company noted that cash usage in Q1 2023 was ~$57M, mainly due to a working capital impact caused by delays in cash collections from international customers and outlays for inventory.

Due to this, the company expects its cash balance of $86M to get it into Q1 2024.

ViewRay plans to decrease cash usage to a range of $25M to $50M in 2024, including of its operating expense initiatives.

"We are further heightening our operational focus and intend to act quickly with preliminary expense-saving initiatives as we evaluate additional options to further reduce operating cost and cash utilization," added Drake.

Strategic alternatives :

ViewRay board has engaged Goldman Sachs as a financial advisor to undertake an evaluation of strategic alternatives, including a corporate sale, merger or business combination.

VRAY -1.99% to $2.95 premarket April 13

For further details see: