SAN JOSE, Calif., March 15, 2019 (GLOBE NEWSWIRE) -- Restoration Robotics, Inc. (NASDAQ:HAIR), a global leader in robotic hair restoration, announced today financial results for the fourth quarter and full year ended December 31, 2018.

Highlights:

  • Reported fourth quarter 2018 revenue of $6.7 million, up 14% year-over-year and 38% since the third quarter, primarily due to the sale of 17 ARTAS® Systems worldwide
  • Achieved full year 2018 revenue of $22.0 million, up 3% year-over-year 
  • Launched ARTAS iX™ Robotic Hair Restoration System with implantation functionality in July 2018
  • Completed follow-on public offering of common stock for gross proceeds of $17.3 million in August 2018
  • Appointed board member and aesthetic industry commercial expert Keith Sullivan as Interim Chief Commercial Officer in November 2018
  • Secured $5.0 million from the issuance of convertible promissory notes to certain members of the Board of Directors in February 2019

Fourth Quarter and Full Year 2018 Financial Results
Revenue in the fourth quarter of 2018 was $6.7 million, a 14% increase from $5.9 million in the fourth quarter of 2017. Revenue for 2018 was $22.0 million, a 3% increase from $21.3 million for 2017.

Gross margin in the fourth quarter of 2018 was 39% compared to 47% in the fourth quarter of 2017. Gross margin for 2018 was 43%, flat from full year 2017. The change in gross margin for the fourth quarter and year-over-year was primarily driven by the implementation of certain cost efficiencies, which were partially offset by higher initial manufacturing, warranty and other costs associated with ARTAS® iX.

Operating expenses in the fourth quarter of 2018 were $9.8 million, a 50% increase from $6.6 million in the fourth quarter of 2017. Operating expenses for 2018 were $35.4 million, an increase of 34% from $26.4 million for 2017. The increase in operating expenses in both periods was largely due to increased investments in the Company’s sales and marketing initiatives and reserves that were made for customers’ accounts receivable primarily outside of the United States.

Net loss for the fourth quarter of 2018 was $(8.0) million or $(0.20) per share, compared with a net loss of $(1.1) million, or $(0.04) per share, for the fourth quarter of 2017. Net loss for the full year 2018 was $(28.7) million or $(0.86) per share, compared to $(17.8) million or $(2.42) per share for the full year 2017. 

Total cash and cash equivalents were $16.1 million as of December 31, 2018. Cash and cash equivalents as of December 31, 2018 does not include the proceeds of $5.0 million from the Company’s issuance of Convertible Promissory Notes finalized on February 28, 2019.

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. The Company has unique expertise in machine vision, image guidance, visual servoing and robotics, as well as developing intuitive interfaces to manage these technologies.

Forward-Looking Statements
Statements made in this press release that are not statements of historical fact are forward-looking statements. Forward-looking statements are subject to the “safe harbor” provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking statements are commonly identified by words such as “would,” “may,” “expects,” “believes,” “plans,” “intends,” “projects” and other terms with similar meaning. Investors are cautioned that the forward-looking statements in this document are based on current beliefs, assumptions and expectations, speak only as of the date of this document and involve risks and uncertainties that could cause actual results to differ materially from current expectations. Such statements are subject to certain known and unknown risks and uncertainties, many of which are difficult to predict and generally beyond our control, that could cause actual results and other future events to differ materially from those expressed in, or implied or projected by, the forward-looking information and statements. Material factors that could cause actual results to differ materially from current expectations include, without limitation, the following: the progress of our commercialization, marketing and manufacturing capabilities; the number of ARTAS Systems we sell; the timing or likelihood of regulatory filings and approvals for ARTAS for use in transplanting of hair; and our potential delisting from Nasdaq, including reduced trading liquidity and market price of our common stock. These factors, together with those that are described in greater detail in our Annual Report on Form 10-K for the year ended 2017 filed on March 5, 2018 and our Quarterly Report on Form 10-Q for the nine months ended September 30, 2018 filed on November 5, 2018, as well as any reports that we may file with the SEC in the future, including our Annual Report on Form 10-K for the year ended 2018 may cause our actual results, performance or achievements to differ materially and adversely from those anticipated or implied by our forward-looking statements. We expressly disclaim any obligation, except as required by law, or undertaking to update or revise any such forward-looking statements. 

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

Investor Contact
The Ruth Group
Brian Johnston
bjohnston@theruthgroup.com
646-536-7000

RESTORATION ROBOTICS, INC.
Consolidated Statements of Operations
(Unaudited)
(in thousands, except share and per share data)

 Three Months Ended  Twelve Months Ended 
 December 31,  December 31, 
 2018 2017  2018  2017 
Revenue$6,658 $5,856  $21,956  $21,297 
Cost of revenue 4,088  3,097   12,450   12,150 
Gross profit 2,570  2,759   9,506   9,147 
Operating expenses:              
Sales and marketing 5,057  3,653   18,204   14,390 
Research and development 2,088  1,557   8,374   7,135 
General and administrative 2,674  1,355   8,834   4,904 
Total operating expenses 9,819  6,565   35,412   26,429 
Loss from operations (7,249) (3,806)  (25,906)  (17,282)
Other income (expense), net:             
Interest expense (735) (420)  (2,224)  (2,027)
Gain on sale of investment   1,851      1,851 
Other income (expense), net 18  1,317   (549)  (328)
Total other income (expense), net (717) 2,748   (2,773)  (504)
Net loss before provision for income taxes (7,966) (1,058)  (28,679)  (17,786)
Provision for income taxes 15  6  47   56 
Net loss$(7,981)$(1,064) $(28,726) $(17,842)
Net loss per share, basic and diluted$(0.20)$(0.04) $(0.86) $(2.42)
Weighted-average shares used in computing net loss per share, basic and diluted 40,676,512  24,482,912   33,512,181   7,382,715 
               


RESTORATION ROBOTICS, INC.
Consolidated Balance Sheets
(Unaudited)
(in thousands, except share and per share data)

 December 31, December 31, 
 2018 2017 
ASSETS      
CURRENT ASSETS:      
Cash and cash equivalents$16,122 $23,545 
Accounts receivable, net of allowance 6,569  3,864 
Inventory 5,522  2,761 
Prepaid expenses and other current assets 1,278  1,562 
Total current assets 29,491  31,732 
Property and equipment, net 1,299  1,138 
Restricted cash 83  100 
Other assets 100   
TOTAL ASSETS$30,973 $32,970 
LIABILITIES AND STOCKHOLDERS’ EQUITY      
CURRENT LIABILITIES:      
Accounts payable$3,815 $2,044 
Accrued compensation 1,771  1,630 
Other accrued liabilities 2,337  1,125 
Deferred revenue 1,407  1,517 
Current portion of long-term debt, net 49  7,730 
Total current liabilities 9,379  14,046 
Other long-term liabilities 594  459 
Long-term debt, net 19,418  5,271 
TOTAL LIABILITIES 29,391  19,776 
       
Convertible preferred stock, $0.0001 par value; 10,000,000 shares authorized, and
no shares issued and outstanding as of December 31, 2018 and December 31, 2017
  
STOCKHOLDERS’ EQUITY:      
Common stock, $0.0001 par value; 300,000,000 shares authorized as of December 31, 2018 and December 31, 2017;
40,677,012 and 28,940,282 shares issued and outstanding as of December 31, 2018 and December 31, 2017
 4  3 
Additional paid-in capital 194,841  177,757 
Accumulated other comprehensive loss (50) (79)
Accumulated deficit (193,213) (164,487)
TOTAL STOCKHOLDERS’ EQUITY 1,582  13,194 
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY$30,973 $32,970