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Restoration Robotics® Reports Financial Results for First Quarter 2019

Reports Record Quarterly Gross Margin of 54.4%

SAN JOSE, Calif., May 15, 2019 (GLOBE NEWSWIRE) -- Restoration Robotics, Inc. (NASDAQ:HAIR), a global leader in robotic hair restoration, announced today financial results for the first quarter ended March 31, 2019.

Highlights:

  • Reported first quarter 2019 revenue of $5.4 million, up 8% year-over-year
  • Sold 14 ARTAS® Systems in the first quarter, including 11 ARTAS iX™ Systems, 8 of which were sold in the U.S. and 3 in EMEA
  • Gross margin improved to 54.4%, compared to 36.4% in the prior period as the result of higher average selling price per system and ongoing cost reduction initiatives
  • Announced proposed merger with Venus Concept, initiated process for regulatory approvals

First Quarter 2019 Financial Results
Revenue in the first quarter of 2019 was $5.4 million, an 8% increase from $5.0 million in the first quarter of 2018.

Gross margin in the first quarter of 2019 was 54% compared to 36% in the first quarter of 2018. The change in gross margin for the first quarter was driven by a higher average selling price per system sold during the period and ongoing cost reduction initiatives.

Operating expenses in the first quarter of 2019 were $9.6 million, an 8% increase from $8.9 million in the first quarter of 2018. The increase in operating expenses was largely due to $1.5 million of merger-related expenses, which was largely offset by lower R&D and G&A expenses.

Net loss for the first quarter of 2019 was $(7.4) million or $(0.18) per share, compared with a net loss of $(7.4) million, or $(0.26) per share, for the first quarter of 2018. 

Total cash and cash equivalents were $15.0 million as of March 31, 2019. Cash and cash equivalents as of March 31, 2019 includes the proceeds of $5.0 million from our issuance of Convertible Promissory Notes on February 28, 2019.

Our results for the quarter ended March 31, 2019 are not necessarily indicative of our operating results for the full year 2019 or any other future periods.  

About Restoration Robotics
Restoration Robotics, Inc., is a medical device company developing and commercializing the ARTAS® and ARTAS iX™ Robotic Hair Restoration System. The ARTAS Systems are the first and only physician-assisted robotic systems to dissect and assist in the harvesting of follicular units directly from the scalp, create recipient implant sites using proprietary algorithms and, in the case of the ARTAS iX System, robotically implant the hair follicles into the designated sites. We have unique expertise in machine vision, image guidance, visual servoing and robotics, as well as developing intuitive interfaces to manage these technologies.

Media Contact
The Ruth Group
Kirsten Thomas
kthomas@theruthgroup.com
646-536-7000

Investor Contact
The Ruth Group
Carol Ruth/Kaitlyn Brosco
cruth@theruthgroup.com / kbrosco@theruthgroup.com
646-536-7000

RESTORATION ROBOTICS, INC.

Condensed Consolidated Statements of Operations
(Unaudited)
(in thousands, except for shares and per share data)

  Three Months Ended
  March 31,
  2019   2018
Revenue $ 5,394     $ 5,005  
Cost of revenue   2,457       3,185  
Gross profit   2,937       1,820  
Operating expenses:      
Sales and marketing   4,570       4,384  
Research and development   1,488       2,125  
General and administrative   1,992       2,351  
Merger related expenses   1,501       —  
Total operating expenses   9,551       8,860  
Loss from operations   (6,614 )     (7,040 )
Other expense, net:      
Interest expense   (766 )     (358 )
Other expense, net   (46 )     (20 )
Total other expense, net   (812 )     (378 )
Net loss before provision for income taxes   (7,426 )     (7,418 )
Provision for income taxes   14       13  
Net loss attributable to common stockholders $ (7,440 )   $ (7,431 )
Net loss per share attributable to common stockholders, basic and diluted $ (0.18 )   $ (0.26 )
Weighted-average shares used in computing net loss per share attributable to common stockholders, basic and diluted   40,753,012       28,962,269  
       

RESTORATION ROBOTICS, INC.

Condensed Consolidated Balance Sheets
(Unaudited)
(in thousands, except for shares and per share data)

  March 31   December 31
  2019   2018
ASSETS      
CURRENT ASSETS:      
Cash and cash equivalents $ 14,957     $ 16,122  
Accounts receivable, net   6,699       6,569  
Inventory   5,207       5,522  
Prepaid expenses and other current assets   1,239       1,278  
Total current assets   28,102       29,491  
Property and equipment, net   1,471       1,299  
Restricted cash   83       83  
Other assets   166       100  
TOTAL ASSETS $ 29,822     $ 30,973  
LIABILITIES AND STOCKHOLDERS’ EQUITY (DEFICIT)      
CURRENT LIABILITIES:      
Accounts payable $ 4,193     $ 3,815  
Accrued compensation   1,515       1,771  
Other accrued liabilities   2,920       2,337  
Deferred revenue   1,384       1,407  
Current portion of long-term debt, net   1,974       49  
Total current liabilities   11,986       9,379  
Other long-term liabilities   655       594  
Convertible promissory notes   5,000       —  
Long-term debt, net   17,655       19,418  
TOTAL LIABILITIES   35,296       29,391  
STOCKHOLDERS’ EQUITY (DEFICIT):      
Convertible preferred stock, $0.0001 par value; 10,000,000 shares authorized, and no shares issued and outstanding as of March 31, 2019 and December 31, 2018   —       —  
Common stock, $0.0001 par value; 300,000,000 shares authorized as of March 31, 2019 and December 31, 2018; 40,767,012 and 40,677,012 shares issued and outstanding as of March 31, 2019 and December 31, 2018   4       4  
Additional paid-in capital   195,189       194,841  
Accumulated other comprehensive loss   (14 )     (50 )
Accumulated deficit   (200,653 )     (193,213 )
TOTAL STOCKHOLDERS’ EQUITY (DEFICIT)   (5,474 )     1,582  
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY (DEFICIT) $ 29,822     $ 30,973  
       

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Source: Restoration Robotics, Inc.