Full Press Release Details
InspireMD Reports Financial Results for
the Second Quarter Ended June 30, 2015
BOSTON, MA - August 5, 2015 - InspireMD,
Inc. (NYSE MKT: NSPR) ("InspireMD" or the "Company"), a leader in stent embolic prevention systems
("EPS"), today announced its financial and operating results for the second quarter ended June 30, 2015.
The Company is in the second full quarter
of a strategic transition into penetrating the carotid and neuro intervention markets utilizing its proprietary MicroNetTM
technology. MicroNet technology has the potential to improve the clinical outcomes for patients who are at risk of embolization
during Carotid Artery Stenting (CAS), a highly attractive $500 million dollar global market segment within the interventional medical
device industry. Early clinical results of the CGuardTM Embolic Prevention System have been highly positive in the CARENET
and PARADIGM data sets.
Alan Milinazzo, CEO of InspireMD, commented,
"As previously stated, 2015 is a transition year for InspireMD, as we continue to execute on our strategic plan with a sense
of urgency and the resources to deliver on key milestones. We remain on course to drive increased market adoption of our carotid
platform and look forward to a full European market launch with our new strategic distribution partner, Penumbra Inc. We also advanced
our development program for our neurovascular platform and we look forward to broader collaboration discussions, including those
facilitated by our Penumbra partnership."
Recent Operating Highlights:
Secured a CGuard strategic distribution agreement with Penumbra
Inc., a market leader in the interventional neuroradiology and peripheral vascular markets.
Reported sequential revenue increases
of 182% for carotid and 24% for coronary product sales in the quarter.
On track for full Penumbra commercial
launch of CGuard in Q4 of 2015.
REGULATORY / CLINICAL / PRODUCT DEVELOPMENT
Comprehensive cash management, with steady,
measured declines in monthly cash use.
Continued implementation of cost containment
activities while supporting key development programs.
Quarter Ended June 30, 2015 Financial
Revenue for the second quarter ended June
30, 2015 increased $0.5 million to $0.7 million compared to $0.2 million during the same period in 2014. The 2015 period included
an increase in sales of MGuard Prime EPS, our coronary product, due to the suspension of sales that occurred in the three
months ended June 30, 2014 due to our voluntary field corrective action ("VFA") which began on April 30, 2014, as well
as sales of our new product CGuard EPS, our carotid product, which was launched in October 2014.
The Company's gross loss for the quarter
ended June 30, 2015 was $0.2 million compared to a gross loss of $0.4 million for the same period in 2014. The improvement of 45.8%
was largely attributable to the increase in product revenues and no costs associated with our VFA, which occurred during the three
months ended June 30, 2014. This improvement was partially offset by write-offs and other related adjustments of MGuard
Prime EPS inventory due to the trend of increased usage of drug eluting stents rather than bare metal stents in STEMI patients.
Total operating expenses for the quarter
ended June 30, 2015 were $3.4 million, a decrease of 50.9% compared to $6.8 million for the same period in 2014. This decrease
was primarily due to a reduction of expenses related to MGuard Prime EPS's MASTER II trial, which was suspended in
October 2014, a decrease in compensation related expenses and other savings associated with our cost reduction plans.
The loss from operations for the quarter
ended June 30, 2015 was $3.6 million, a decrease of 50.6% compared to a loss of $7.2 million for the same period in 2014.
Financial expenses for the quarter ended
June 30, 2015 remained flat at $0.3 million compared to the same period in 2014.
The net loss for the quarter ended June
30, 2015 totaled $3.9 million, or $0.05 per basic and diluted share, compared to a net loss of $7.6 million, or $0.22 per basic
and diluted share, in the same period in 2014.
Non-GAAP net loss for the quarter ended
June 30, 2015 was $2.9 million, or $0.04 per basic and diluted share, a decrease of 55.6% compared to a non-GAAP net loss of $6.5
million, or $0.19 per basic and diluted share, for the same period in 2014. The non-GAAP net loss for the quarter ended June
30, 2015 primarily excludes $1.0 million of share-based compensation. The non-GAAP net loss for the quarter ended June 30, 2014
primarily excludes $1.1 million of share-based compensation.
Six Months Ended June 30, 2015 Financial
Revenue for the six months ended June 30,
2015 decreased $0.5 million to $1.2 million compared to $1.7 million during the same period in 2014. The 2015 period included an
expected decline in sales of MGuard Prime EPS associated with the trend of doctors increasingly using drug eluting stents
rather than bare metal stents in STEMI patients and the impact of the transition to a new commercial strategy built on using third
party distributors for our products offset by sales of our new product CGuard EPS, which was launched on a limited basis
The Company's gross loss for the six months
ended June 30, 2015 was $0.2 million, a decrease of 153.4% compared to a gross profit of $0.5 million for the same period in 2014.
The decrease was largely attributable to the decrease in product revenues and write-offs of inventory due to the trend of increased
usage of DES stents in STEMI patients, longer shelf life requirements and the transition to the rapid exchange delivery system
for CGuard from the over the wire platform.
Total operating expenses for the six months
ended June 30, 2015 were $8.2 million, a decrease of 37.9% compared to $13.2 million for the same period in 2014. This decrease
was primarily due to a reduction of expenses related to MGuard's MASTER II trial, a decrease in compensation related expenses and
other savings associated with our cost reduction plans.
The loss from operations for the six months
ended June 30, 2015 was $8.5 million, a decrease of 33.7% compared to a loss of $12.8 million for the same period in 2014.
Financial expenses for the six months ended
June 30, 2015 decreased 14.9% to $0.6 million from $0.7 million during the same period in 2014. This decrease was primarily due
to a decrease in interest expenses.
The net loss for the six months ended June
30, 2015 totaled $9.1 million, or $0.14 per basic and diluted share, compared to a net loss of $13.5 million, or $0.40 per basic
and diluted share, in the same period in 2014.
Non-GAAP net loss for the six months ended
June 30, 2015 was $6.7 million, or $0.11 per basic and diluted share, a decrease of 41.3% compared to a non-GAAP net loss of $11.4
million, or $0.34 per basic and diluted share, for the same period in 2014. The non-GAAP net loss for the six months ended
June 30, 2015 primarily excludes $2.0 million of share-based compensation and $0.3 million of expense related to an impairment
of a royalties buyout asset. The non-GAAP net loss for the six months ended June 30, 2014 primarily excludes $2.1 million of share-based
Cash and Cash Equivalents
As of June 30, 2015, cash and cash equivalents
were $9.8 million, compared to $6.3 million as of December 31, 2014.
Quarterly Conference Call Details
Company has scheduled a conference call to discuss the second quarter 2015 financial results for today at 4:30 PM Eastern. To
participate in the conference call, please dial (866) 652-5200 (United States) or (412)
317-6060 (International) and request the InspireMD call. A live webcast of the call will also be available on the Investor Relations
section of the Company's website at www.inspire-md.com/site_en/for-investors. Please allow 10 minutes prior to the
call to visit this site to download and install any necessary audio software.
of the webcast will be available approximately two hours after completion of the live event and will be accessible on the Investor
Relations section of the Company's website at www.inspire-md.com/site_en/for-investors for a limited time. A dial-in replay
of the call will also be available to those interested until August 19, 2015. To access the replay, dial (877) 344-7529 (United
States) or (412) 317-0088 (International) and enter code: 10068462.
About InspireMD, Inc.
InspireMD seeks to utilize its proprietary
MGuard with MicroNetTM technology to make its products the industry standard for embolic protection and to provide