Full Press Release Details
Harold A. Hurwitz, Chief Financial Officer
MRI INTERVENTIONS, INC. ANNOUNCES 2015
AND FULL YEAR RESULTS
Record-Setting Revenues Achieved in
IRVINE, CA, March 23, 2016 - MRI
Interventions, Inc. (OTCQB: MRIC) today announced financial results for the fourth quarter and full year ended December 31, 2015.
million for the three months ended December 31, 2015, and $960,000 for the same period in 2014, an increase of $552,000, or 57%,
attributable to increases in the Company's ClearPoint System reusable and disposable products.
ClearPoint disposable
product sales for the three months ended December 31, 2015 were $1.0 million, compared with $704,000 for the same period in 2014,
representing an increase of $305,000, or 43%. This increase was due primarily to a greater number of procedures performed using
the ClearPoint system within a larger installed base for ClearPoint, relative to the 2014 period.
product sales for the three months ended December 31, 2015 were $438,000, and $219,000 for the same period in 2014. Reusable products
consist primarily of computer hardware and software bearing sales prices that are appreciably higher than those for disposable
products and historically have fluctuated from quarter to quarter.
Gross margin on product
revenues was 55% for the three months ended December 31, 2015, compared to 29% for the same period in 2014. The improvement was
attributable primarily to: (i) a $300,000 decrease from the fourth quarter of 2014 to the corresponding period in 2015 in charges
to the provision for obsolete and expired product; (ii) increased average unit selling prices in the 2015 fourth quarter; and (iii)
decreased unit costs and greater production efficiencies arising from increased volume in the 2015 fourth quarter, relative to
the same period in 2014, partially offset by a $95,000 increase in the 2015 fourth quarter, relative to the same period in 2014,
in the allocation of indirect labor to production activities, commensurate with the Company's transition from research and
development to commercial activities.
Research and development
costs were $523,000 for the three months ended December 31, 2015, compared to $708,000 for the same period in 2014, a decrease
of $185,000, or 26%, attributable primarily to reduced spending on the Company's ClearTrace development program.
Selling, general and
administrative expenses were $1.8 million for the three months ended December 31, 2015, compared to $2.2 million in the same period
in 2014, a decrease of $485,000, or 22%. This decrease was attributable primarily to the completion of the Company's consolidation
in 2015 of all its business functions into its Irvine, California headquarters and the closure of its offices in
California 92618 949.900.6833
which resulted in a $255,000 reduction of administrative compensation costs in the fourth quarter of 2015, relative to the same
period in 2014, and a $166,000 increase in the allocation of departmental resources to production activities in the fourth quarter
of 2015 as compared to the same period in 2014, partially offset by a $122,000 increase in sales and marketing compensation costs.
During the three months
ended December 31, 2015 and 2014, the Company recorded gains of $559,000 and $972,000, respectively, from changes in the fair value
of derivative liabilities associated with certain warrants the Company issued in private placement transactions.
million for the year ended December 31, 2015, and $3.6 million for the same period in 2014, an increase of $990,000, or 27%, attributable
to growth in the Company's ClearPoint System disposable and reusable products.
ClearPoint disposable
product sales for the year ended December 31, 2015 were $3.5 million, compared with $2.6 million for the same period in 2014, representing
an increase of $885,000, or 34%. This increase was due primarily to a greater number of procedures performed using the ClearPoint
System within a larger installed base for ClearPoint, relative to the 2014 period.
product sales for the year ended December 31, 2015 were $907,000, compared with $767,000 for the same period in 2014, representing
an increase of $141,000, or 18%.
Gross margin on product
revenues for the year ended December 31, 2015 was 55%, compared to gross margin of 43% for the same period in 2014. The improvement
was attributable primarily to: (i) a $300,000 decrease from 2014 to 2015 in charges to the provision for obsolete and expired product;
(ii) increased average unit selling prices in 2015 as compared to 2014; and (iii) decreased unit costs and greater production efficiencies
arising from increased volume in 2015 relative to 2014, partially offset by a $95,000 increase in 2015, relative to 2014, in the
allocation of indirect labor to production activities, commensurate with the Company's transition from research and development
to commercial activities.
Research and development
costs were $2.0 million for the year ended December 31, 2015, compared to $3.3 million for the year ended December 31, 2014, a
decrease of $1.3 million, or 41%. Of this decrease, $649,000 related to a reduction in spending on the Company's ClearTrace
development program, and $211,000 related to reductions in sponsored research.
Selling, general and
administrative expenses were $8.4 million for the year ended December 31, 2015, compared with $8.0 million for the same period
last year, an increase of $332,000, or 4%. The increase was primarily attributable to increases in 2015, relative to 2014, of $310,000
in sales and marketing related cash compensation costs and $371,000 in share-based compensation, partially offset by a $166,000
increase in the allocation of departmental resources to production activities.
The consolidation of
the Company's business functions into its Irvine, California headquarters and the closure of its Memphis, Tennessee office
in 2015 resulted in the Company not retaining any of its Memphis-based employees. A total of seven employees were impacted by the
consolidation, including three executives, whose termination of employment triggered a modification in the terms of stock options
previously granted to them. In connection with this consolidation, the Company recorded restructuring charges of $1.3 million in
2015, primarily related to severance costs, and to the revaluation of the stock options with modified terms and the resulting accrual
of additional share-based compensation expense.
During the year ended
December 31, 2014, the Company recorded a gain of $4.3 million related to the sale of certain intellectual property to Boston Scientific.
The purchase price was satisfied through the cancellation of related party convertible notes payable the Company previously issued
to Boston Scientific in the aggregate principal amount of $4.3 million. The Company recorded a gain equal to the purchase price,
as the assets sold had not been previously recorded on its balance sheet.
years ended December 31, 2015 and 2014, the Company recorded gains of $1.5 million, resulting from changes in the fair value of
derivative liabilities associated with certain warrants the Company issued in private placement transactions.
pleased with fourth quarter results, as well as our accomplishments for 2015. It was a very busy quarter and a very busy year.
When looking back on the quarter and the year, I am very proud of the accomplishments of our team," said Frank Grillo, President
and Chief Executive Officer of MRI Interventions. "I cannot cover everything we accomplished, so let me just list a few highlights:
2015 Key Accomplishments:
2015 Key Accomplishments
"I am also pleased to mention that,
as we announced yesterday, we have reached an agreement with Brainlab AG to restate and restructure their $4.3 million senior note
that was otherwise set to become due in April 2016," Grillo continued. "Revenues are up, expenses are down, and the
new agreements with Brainlab are set to go into effect. 2016 is off to a great start."
Investors and analysts
are invited to listen to a live broadcast review of the Company's 2015 fourth quarter and full year financial results today at
4:30 p.m. Eastern Time (1:30 p.m. Pacific Time) that may be accessed by visiting the Company's website at www.mriinterventions.com
and selecting "Investors" / "News" / "IR Calendar." The conference call may also be accessed
at http://mriinterventions.equisolvewebcast.com/q4-2015. Investors and analysts who would like to participate in the conference
call may do so via telephone at (877) 407-9034, or at (201) 493-6737 if calling from outside the U.S. or Canada.
those who cannot access the live broadcast, a replay will be available shortly after the completion of the call until March 31,
2016 by calling (877) 660-6853, or (201) 612-7415 if calling from outside the U.S. or Canada, and then entering conference I.D.
number 413671. An online archive of the broadcast will be available on the Company's website at www.mriinterventions.com, on the
"Investor Relations" page.
MRI Interventions, Inc.
on the imaging power of magnetic resonance imaging, or MRI, MRI Interventions is creating innovative platforms for performing the
next generation of minimally invasive surgical procedures. The Company's ClearPoint System, which has received 510(k)
clearance and is CE marked, utilizes a hospital's existing diagnostic or intraoperative MRI suite to enable a range of minimally
invasive procedures in the brain. In partnership with Siemens Healthcare, MRI Interventions is developing the ClearTrace System
to enable MRI-guided catheter ablations to treat cardiac arrhythmias. For more information, please visit www.mriinterventions.com.