Conformis, Inc. (NASDAQ:CFMS), a medical technology company that
uses its proprietary iFit Image-to-Implant technology platform to
develop, manufacture and sell joint replacement implants designed
to fit each patient’s unique anatomy, today announced preliminary,
unaudited, revenue results for the second quarter ended June 30,
2020.
Expected Q2 Summary:
- Total revenue of approximately $19.5 million, down 1%
year-over-year on a reported and constant currency basis
- Royalty revenue of $9.7 million, including a royalty settlement
of $9.6 million
- Product revenue of approximately $9.7 million, down 50%
year-over-year on a reported and constant currency basis
- U.S. product revenue of approximately $8.3 million, down 52%
year-over-year on a reported basis
- Rest of world product revenue of approximately $1.4 million,
down 34% year-over-year on a reported basis and 33% on a constant
currency basis
“As expected, the second quarter was impacted by
the novel coronavirus (COVID-19) pandemic,” said Mark Augusti,
President and Chief Executive Officer. “While we were pleased
to see a fairly quick resumption of scheduled orthopedic procedures
in May and June, we anticipate volumes to remain under pressure for
the remainder of the year.”
“In order to better describe the revenue
performance underlying the quarter Conformis is providing the
following monthly global product revenue year-over-year growth
rates: April down 94%, May down 39%, and June down 9%. It
should be noted that we continue to withhold any comment about
future performance. Clearly there was some correlation with
the resumption of elective procedures; however, we cannot predict
the pace of further resumption, the risk of further shutdowns in
procedures and the geographic and regional uncertainty.”
Credit Agreement Amendment
Conformis is pleased to announce that, in
recognition of the economic impact of COVID-19 on Conformis’
business, the Company has successfully amended the quarterly
financial covenants contained in the Loan and Security Agreement,
dated June 25, 2019, with Innovatus Life Sciences Lending Fund I,
LP (“Innovatus”), as collateral agent and lender, East West Bank,
and other lenders party thereto from time to time.
“For companies with credit facilities, the
impact of COVID-19 on business operations has undoubtedly made it
difficult for many of them to satisfy some or all of their
financial covenants. We reported on March 23, 2020, that we may not
be able to meet our 2Q revenue covenant and would work with
Innovatus to modify our credit facility. I am pleased that we
have been able to come to agreement that better reflects current
economic realities,” said Augusti. “This is an indication of the
good and cooperative partnership we have with Innovatus.”
Second Quarter Earnings Call Announcement
Conformis also announced today that it will host a webcast and
conference call on Wednesday, August 5, 2020, at 4:30 p.m. Eastern
Time to discuss its financial results for the second quarter ended
June 30, 2020. The webcast will be live at:
https://edge.media-server.com/mmc/p/phu3zyop.
To attend by telephone, please use the information below for
dial-in access. When prompted on dial-in, please utilize
conference ID: 4393118.
Participant conference numbers: (844) 286-1554
(U.S./Canada) and (270) 823-1179 (International).
Please dial in at least 10 minutes before the call to ensure
timely participation.
The webcast will be hosted by Mark Augusti, President and Chief
Executive Officer, and Bob Howe, Chief Financial Officer.
Please visit the Investor Relations website at ir.conformis.com on
August 5, 2020 to view the earnings release prior to the webcast
and conference call.
The online archive of the webcast will be available on the
Company’s website at ir.conformis.com for 30 days.
These preliminary results are being provided in
advance of the Company’s August 5, 2020 earnings call. The
preliminary, unaudited revenue results described in this press
release are estimates only and are subject to revision.
About Conformis, Inc.
Conformis is a medical technology company that
uses its proprietary iFit Image-to-Implant technology platform to
develop, manufacture, and sell joint replacement implants and
instruments that are individually sized and shaped, which we refer
to as customized, to fit each patient’s unique anatomy.
Conformis offers a broad line of sterile, personalized knee and hip
implants and single-use instruments delivered to hospitals.
In clinical studies, Conformis iTotal CR knee replacement system
demonstrated superior clinical outcomes, including better function
and greater patient satisfaction, compared to traditional,
off-the-shelf implants. Conformis owns or exclusively in-licenses
issued patents and pending patent applications that cover
personalized implants and patient-specific instrumentation for all
major joints.
For more information, visit
www.conformis.com. To receive future releases in e-mail
alerts, sign up at ir.conformis.com.
Cautionary Statement Regarding
Forward-Looking Statements
Statements in this press release about our
future expectations, plans and prospects, including statements
about the anticipated impact of the novel coronavirus (COVID-19)
pandemic and the actions we are taking and planning in response,
the anticipated timing of our product launches, the extent to which
restrictions on elective surgeries will continue to be relaxed and
demand for procedures will increase, our ability to satisfy
quarterly financial covenants, and our financial position and
results, total revenue, product revenue, gross margin, operations
and growth, as well as other statements containing the words
“anticipate,” “believe,” “continue,” “could,” “estimate,” “expect,”
“intend,” “may,” “might,” “plan,” “potential,” “predict,”
“project,” “should,” “target,” “will,” or “would” and similar
expressions, constitute forward-looking statements within the
meaning of the safe harbor provisions of The Private Securities
Litigation Reform Act of 1995. We may not actually achieve
the forecasts disclosed in our forward-looking statements, and you
should not place undue reliance on our forward-looking statements.
Actual financial results could differ materially from the
projections disclosed in the forward-looking statements we make as
a result of a variety of risks and uncertainties, including risks
related to COVID-19 and the response to the pandemic; whether our
cash resources will be sufficient to fund our continuing operations
for the periods anticipated; risks related to our estimates and
expectations regarding our revenue, gross margin, expenses, revenue
growth and other results of operations, and the other risks and
uncertainties described in the “Risk Factors” sections of our
public filings with the Securities and Exchange Commission.
In addition, the forward-looking statements included in this
press release represent our views as of the date hereof. We
anticipate that subsequent events and developments may cause our
views to change. However, while we may elect to update these
forward-looking statements at some point in the future, we
specifically disclaim any obligation to do so. These
forward-looking statements should not be relied upon as
representing our views as of any date subsequent to the date
hereof.
CONTACT:
Investor Relations
ir@conformis.com
(781) 374-5598
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