TearLab Corporation Reports Third Quarter And September Year-To-Date 2016 Financial Results

SAN DIEGO, Nov. 07, 2016 (GLOBE NEWSWIRE) -- TearLab Corporation (NASDAQ:TEAR) (TSX:TLB) ("TearLab" or the "Company") today reported its consolidated financial results for the third quarter and nine months ended September 30, 2016. All dollar amounts are expressed in U.S. currency and results are reported in accordance with United States generally accepted accounting principles except where noted otherwise.

Recent Highlights
  • Total revenue of $20.9 million grew 14% year-to-date with all time high revenue of $7.2 million for the third quarter
  • Flex business reached an all-time high of approximately $21,000 annualized revenue per account, driving growth of 5% quarter over quarter
  • Net loss per share of $(0.07) improved from $(0.24) for the same period in the prior year
  • Entered into an agreement with PRN Physicians Recommended Nutriceuticals (PRN) for co-promotion of PRNs omega-3 formulations

For the three months ended September 30, 2016, TearLab's net revenues were $7.2 million, up 9% from $6.6 million for the same period in 2015. A net total of 232 TearLab Osmolarity® Systems were added in the third quarter of 2016, of which 85 were under the Company's new Flex program and 66 were purchased outside of the United States.

The following table sets out the estimated annualized revenue per U.S. device and account analysis for the third quarter ended September 30, 2016:
            Annualized   Annualized
    Active   Active   Revenue   Revenue
Program   Devices   Accounts   Per Device   Per Account
Purchased   496   431   $ 1,801     $ 2,072  
Use   200   199   $ 3,819     $ 3,838  
Masters   1,730   220   $ 3,480     $ 27,363  
Flex   1,878   802   $ 8,937     $ 20,926  
Total     4,304     1,652        
                 

The Company's reported net loss for the 2016 third quarter was approximately $4.0 million, or ($0.07) basic loss per share, compared to a reported net loss of approximately $8.1 million, or ($0.24) basic loss per share, in the third quarter of 2015.

"During the quarter, and despite the slower summer season, we began to see the anticipated growth in sales following a strategic shift in our commercial model. Our restructured sales force, which has become smaller and more effective, has done an excellent job of reorganizing accounts in order to make the use of our devices more efficient," said Seph Jensen, TearLab's Chief Executive Officer. "Our focus on clinical value and growing utilization is reflected in our results, and we expect to see continued growth from both expansion and productivity gains in our device footprint."

Current Business Outlook
  • TearLab maintains its full year 2016 guidance for revenue growth, R&D spend, and cash burn.  
  • The Company continues to make progress on its next generation platform to incorporate additional biomarkers in a single test.  The Company made the strategic decision to include three biomarkers on the first test in its next generation device including osmolarity and two biomarkers for inflammation. 
  • The Company continues to anticipate receiving CE mark in the European Union by the end of 2016.  The CE mark approval is then expected to be used to build clinical data and the registration file for a 510K submission to the U.S. Food and Drug Administration (FDA) in the first half of 2017.  

Mr. Jensen concluded, "As part of our efforts to further the diagnosis and treatment of Dry Eye Disease, we recently entered into a co-promotion agreement with PRN whereby the TearLab U.S. sales force will promote PRN omega-3 formulations, which have been clinically proven to reduce osmolarity levels in dry eye patients. We believe this will enable us to create additional revenue and increase awareness of the need for an objective measure of osmolarity levels, all through our current sales channels without additional expense load. This partnership creates synergy for improved market presence, and we are excited about having PRN in our portfolio and look forward to the positive impact for the Company." 

About TearLab Corporation

TearLab Corporation ( www.tearlab.com) develops and markets lab-on-a-chip technologies that enable eye care practitioners to improve standard of care by objectively and quantitatively testing for disease markers in tears at the point-of-care. The TearLab Osmolarity Test, for diagnosing Dry Eye Disease, is the first assay developed for the award-winning TearLab Osmolarity System.  TearLab Corporation's common shares trade on the NASDAQ Capital Market under the symbol 'TEAR' and on the Toronto Stock Exchange under the symbol 'TLB'.

Forward-Looking Statements

This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended.  Forward-looking statements include, among others, statements concerning our future financial and operational performance including anticipated savings from the strategic restructuring, opportunities associated with new program offerings, accessing future capital, plans with respect to our marketing strategy, and potential results of our new co-promotion agreement with PRN. These forward-looking statements involve known and unknown risks, uncertainties, and other factors that may cause actual results to be materially different from any future results expressed or implied by the forward-looking statements. Forward-looking statements are based on management's current, preliminary expectations and are subject to various risks and uncertainties. Many factors, risks and uncertainties may cause our actual results to differ materially from forward-looking statements, including the factors, risks, and uncertainties detailed in our filings with the Securities and Exchange Commission and Canadian securities regulatory authorities, including but not limited to our Annual Report on Form 10-K for the year ended December 31, 2015, filed with the SEC on March 9, 2016, and our Quarterly Report on Form 10-Q for the quarter ended September 30, 2016, expected to be filed with the SEC on November 9, 2016. We do not undertake to update any forward-looking statements except as required by law.
 
TearLab Corp.
 
Condensed Consolidated Statements of Operations and Consolidate Loss
(Expressed in U.S. Dollars (000's) except for number of shares and net loss per share)
(Unaudited)
 
    Three months
    ended September 30,
      2016       2015  
Revenue        
Product sales   $   6,463     $ 5,522  
Reader equipment rentals     760       1,090  
Total revenue     7,223       6,612  
Cost of goods sold        
Cost of goods sold  (excluding amortization of intangible assets)     2,564       2,827  
Cost of goods sold - reader equipment depreciation     527       467  
Gross profit     4,132       3,318  
Operating expenses        
Sales and marketing     3,109       4,589  
Clinical, regulatory and research & development       1,007       1,796  
General and administrative       2,598       4,087  
Amortization of intangible assets       359       389  
Total operating expenses       7,073       10,861  
Loss from operations       (2,941 )     (7,543 )
Other income (expense)       (1,041 )     (521 )
Net loss and comprehensive loss   $   (3,982 )   $ (8,064 )
Weighted average shares outstanding  - basic       53,348,908       33,728,931  
Net loss per share  - basic   $   (0.07 )   $ (0.24 )
Weighted average shares outstanding  - diluted       53,348,908       33,774,324  
Net loss per share  - diluted   $ (0.07 )   $ (0.24 )

TearLab Corp.  
   
Condensed Consolidated Statements of Operations and Consolidate Loss  
(Expressed in U.S. Dollars (000's) except for number of shares and net loss per share)  
(Unaudited)  
           
    Nine months  
    ended September 30,  
      2016       2015    
Revenue          
Product sales   $   17,393     $ 14,534    
Reader equipment rentals       3,500       3,830    
Total revenue     20,893       18,364    
Cost of goods sold          
Cost of goods sold  (excluding amortization of intangible assets)     7,569       8,073    
Cost of goods sold - reader equipment depreciation     1,635       1,216    
Gross profit     11,689       9,075    
Operating expenses          
Sales and marketing     11,109       14,932    
Clinical, regulatory and research & development       2,805       4,911    
General and administrative       9,490       11,382    
Amortization of intangible assets       966       1,166    
Total operating expenses       24,370       32,391    
Loss from operations       (12,681 )     (23,316 )  
Other income (expense)       (2,898 )     (987 )  
Net loss and comprehensive loss   $   (15,579 )   $ (24,303 )  
Weighted average shares outstanding  - basic     44,042,032       33,676,917    
Net loss per share  - basic   $   (0.35 )   $ (0.72 )  
Weighted average shares outstanding  - diluted     44,042,032       33,723,678    
Net loss per share  - diluted   $   (0.35 )   $ (0.72 )  

TearLab Corp.  
   
Consolidated Balance Sheets  
(Expressed in U.S. Dollars (000's)  
(Unaudited)  
           
    September 30,   December 31,  
    2016   2015  
ASSETS              
Current assets              
Cash     $  17,548       $ 13,838    
Accounts receivable, net         2,407         3,021    
Inventory         3,404         3,972    
Prepaid expenses and other current assets       837         790    
Total current assets       24,196         21,621    
               
Fixed assets, net       4,713         5,352    
Intangible assets, net       234         1,197    
Other non-current assets       331         181    
Total assets     $ 29,474       $ 28,351    
               
LIABILITIES AND STOCKHOLDERS' EQUITY              
Current liabilities              
Accounts payable     $   1,865       $ 2,292    
Accrued liabilities       3,233         5,047    
Deferred Rent       110         114    
Obligations under warrants               29    
Total current liabilities       5,208         7,482    
               
Long-term debt         25,990         24,859    
               
Total liabilities       31,198         32,341    
               
Exchange right               250    
               
Stockholders' equity (deficit)              
Capital stock              
Preferred Stock, $0.001 par value, 10,000,000 authorized, 2,764 and 0 issued and outstanding at September 30, 2016 and December 31, 2015, respectively       1,911            
Common stock, $0.001 par value, 95,000,000 and 65,000,000 authorized, 52,825,347 and 33,760,904 issued and outstanding at September 30, 2016 and December 31, 2015, respectively       54         34    
Additional paid-in capital       504,679         488,514    
Accumulated deficit       (508,368 )       (492,788 )  
Total stockholders' equity (deficit)       (1,724 )       (4,240 )  
Total liabilities and stockholders' equity     $ 29,474       $ 28,351    

 

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