Medigus Announces Second Quarter 2016 Financial Results

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| Source: Medigus Ltd

OMER, Israel, Aug. 31, 2016 (GLOBE NEWSWIRE) -- Medigus Ltd. (NASDAQ:MDGS) (TASE:MDGS), a medical device company developing minimally invasive endosurgical tools and a leader in direct visualization technology, today announced financial results for the second quarter ended June 30, 2016.

“We continue to advance our vision of delivering an effective, minimally-invasive treatment option for GERD and remain focused on increasing physician awareness of our MUSE technology, which we believe addresses the unmet need in GERD care,” said Chris Rowland, CEO of Medigus. “In China, we plan to initiate a clinical study which will serve as the basis for MUSE regulatory clearance with the China Food and Drug Administration. Thirteen physicians at seven hospitals have been trained on MUSE, and we anticipate this trial commencing in the fourth quarter of this year.”

Recent Highlights:

  • In June, Medigus globally launched the seventh generation of MUSE, which includes updates that offer physicians enhanced usability through an improved ultrasound algorithm, a redesigned distal tip and enhanced software.
  • In July, Johns Hopkins Hospital, an integrated global health enterprise and one of the leading health care systems in the United States, provided Medigus with an initial purchase order for the MUSE system for a system console and endoscopic device.
  • The company is focusing its sales activities on key accounts in the U.S. and Europe.
  • Medigus recently implemented a cost reduction program aimed at lowering operating expenses and reducing its cash burn rate.

Financial Results for the Second Quarter 2016:

  • Revenues for the three months ended June 30, 2016, were $98,000, an increase of 9%, compared to the three months ended June 30, 2015.
  • Research and development expenses for the three months ended June 30, 2016, were $1,103,000, an increase of 2%, compared to the three months ended June 30, 2015.
  • Sales and marketing expenses for the three months ended June 30, 2016, were $748,000, a decrease of 5%, compared to the three months ended June 30, 2015.
  • General and administrative expenses for the three months ended June 30, 2016, were $903,000, an increase of 39%, compared to the three months ended June 30, 2015. The increase resulted primarily from an increase in professional expenses in connection with IP litigation (for more information see note 6a to our financial statements) and increase in salary costs attributed primarily to the strengthening of management.
  • Operating loss for the three months ended June 30, 2016, was $2.7 million, compared to $2.5 million in the three months ended June 30, 2015.
  • Net cash used in operating activities was $2.9 million for the three months ended June 30, 2016, compared to net cash used in operating activities of $2.5 million for the corresponding 2015 period.
  • As August 31, 2016, Medigus had approximately $3.2 million in cash and cash equivalents.

For detailed financial statements, please follow the link: http://www.medigus.com/investor-relations/financial-reports.

About Medigus
Medigus is a medical device company specializing in developing minimally invasive endosurgical tools and highly innovative imaging solutions. They are the pioneer developer of the MUSE™ system, an FDA cleared and CE marked endoscopic device to perform Transoral Fundoplication (TF) for the treatment of GERD (gastroesophageal reflux disease), one of the most common chronic conditions in the world. In 2016, the CMS established the Category I CPT® Code of 43210 for TF procedures, such as the ones performed with MUSE, which establishes reimbursement values for physicians and hospitals. MUSE is gaining adoption in key markets around the world – it is available in world-leading healthcare institutions in the U.S., Europe and Israel. Medigus is also in the process of obtaining regulatory clearance in China. Medigus is traded on the Nasdaq Capital Market and the TASE (Tel-Aviv Stock Exchange). To learn more about the company’s advanced technology, please visit www.medigus.com or www.RefluxHelp.com.

This press release may contain statements that are “Forward-Looking Statements,” which are based upon the current estimates, assumptions and expectations of the company’s management and its knowledge of the relevant market. The company has tried, where possible, to identify such information and statements by using words such as “anticipate,” “believe,” “envision,” “estimate,” “expect,” “intend,” “may,” “plan,” “predict,” “project,” “target,” “potential,” “will,” “would,” “could,” “should,” “continue,” “contemplate” and other similar expressions and derivations thereof in connection with any discussion of future events, trends or prospects or future operating or financial performance, although not all forward-looking statements contain these identifying words.  These forward-looking statements represent Medigus’ expectations or beliefs concerning future events, and it is possible that the results described in this news release will not be achieved. By their nature, Forward-Looking Statements involve known and unknown risks, uncertainties and other factors which may cause future results of the company’s activity to differ significantly from the content and implications of such statements. Among the factors which may cause the actual results to differ from the Forward-Looking Statements are changes in the target market and the introduction of competitive products, our ability to secure favorable reimbursement rates, regulatory, legislative and policy changes, and clinical results. Other risk factors affecting the company are discussed in detail in the Company's filings with the Securities and Exchange Commission. Forward-Looking Statements are pertinent only as of the date on which they are made, and the company undertakes no obligation to update or revise any Forward-Looking Statements, whether as a result of new information, future developments or otherwise. Neither the company nor its shareholders, officers and employees, shall be liable for any action and the results of any action taken by any person based on the information contained herein, including without limitation the purchase or sale of company securities. Nothing in this press release should be deemed to be medical or other advice of any kind.

INVESTOR RELATIONS (U.S.):
David Carey
Lazar Partners Ltd.
212-867-1768
dcarey@lazarpartners.com

INVESTOR RELATIONS (Israel):
Iris Lubitch/ Noam Yellin
SmarTeam
972-3-6954333 
Iris@Smartteam.co.il
Noam@Smartteam.co.il

MEDIA CONTACT: 
Chantal Beaudry/ Carrie Yamond
Lazar Partners Ltd.
212-867-1762
cbeaudry@lazarpartners.com
cyamond@lazarpartners.com