MedTech firm Vicarious Surgical ( NYSE: RBOT ) added ~7% Tuesday after the company announced cost-cutting measures, including layoffs with its Q4 2022 results which, however, exceeded Street forecasts for earnings.
Chief Executive Adam Sachs noted that cost reduction initiatives include efforts to reduce external expenditure and reorganize internal staff. “In this way, we are reducing our burn while focusing investment on our critical business initiatives,” he said during the earnings call.
William Kelly, Chief Financial Officer, noted that layoffs would affect 14% of Vicarious Surgical ( RBOT ) staff and, along with other cost-saving measures, could lead to a $55M – $65M cash burn in 2023.
“As we ended 2022 with $116 million on the balance sheet, we now have roughly 2 years of cash runway,” he forecasted.
On the financial front, Vicarious Surgical ( RBOT ) reported a net loss of $11.2M for the quarter compared to $21.8M net income in the prior year period, which included a $39.6M change in the fair value of warrant liabilities.
However, the company reported a $5.2M net income for the full year on a reported basis, while on a non-GAAP basis, the net loss stood at $78.8M in 2022, more than double that in the prior year.
Read: Seeking Alpha contributor Busted IPO Forum initiated Vicarious Surgical ( RBOT ) with a Hold rating in June.
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Vicarious Surgical rises after announcing layoffs