Second Sight Reports Fourth Quarter and Full Year 2017 Financial Results -- Year-over-year net sales in 2017 double to $8 million, driven by record implant volume -- SYLMAR, Calif.--(BUSINESS WIRE)

Sight Reports Fourth Quarter and Full Year 2017 Financial Results

Year-over-year net sales in 2017 double to $8 million, driven by record implant volume --

Calif.--(BUSINESS WIRE)--Mar. 7, 2018-- Second Sight Medical Products, Inc. (NASDAQ: EYES) ("Second Sight" or "the

Company"), a developer, manufacturer and marketer of implantable visual prosthetics that are intended to create an artificial

form of useful vision to blind patients, today reported financial results for the three- and twelve-month periods ended December

was an important year for Second Sight in which we achieved significant revenue and implant growth, validating our Centers of

Excellence strategy and strengthening our commercial platform. We expanded our reach into new markets around the world and established

a solid funnel of candidates interested in our technology through our proactive U.S. patient outreach efforts. And we recently

delivered on our most ambitious goal - implanting and activating the first-in-human subject in the Orion feasibility study.

Building on our notable achievements, we are confident in our ability to advance our commercial, R&D and clinical research

efforts and expand our market reach in 2018," said Will McGuire, President and CEO of Second Sight.

Quarter 2017 Financial Results

net sales were $3.1 million for the fourth quarter of 2017, compared with $715,000 in the fourth quarter of 2016. Revenue

growth was driven by the increase in implants.

profit was $1.2 million in the fourth quarter of 2017, compared to a $2.6 million gross loss in the fourth quarter of 2016.

Gross profit in the fourth quarter of 2017, included a credit of $1.4 million to partially reverse a previously established reserve

for slow-moving inventory and a $0.8 million charge for unabsorbed overhead costs. The gross loss for the fourth quarter of 2016,

included a $2.1 million reserve for slow-moving inventory and a $0.7 million charge for unabsorbed overhead costs.

operating expenses in the fourth quarter of 2017 were $8.7 million, compared to $7.8 million in the fourth quarter of 2016,

reflecting higher personnel and consulting costs related to the Company's development and commercial efforts. Grant revenue,

which is used to offset research and development costs, declined to $121,000 in the fourth quarter of 2017, compared to $381,000

in the fourth quarter of 2016, due to a grant that was fully utilized by the end of the first quarter of 2017, and provided no

benefit in the fourth quarter of 2017.

loss for the fourth quarter of 2017 was $7.4 million, or $0.13 per share, compared to a net loss of $10.4 million, or

$0.24 per share, in the prior year quarter.

non-GAAP adjusted net loss for the fourth quarter of 2017, excluding non-cash charges, was $7.8 million, or $0.14 per share, compared

with a non-GAAP adjusted net loss of $7.4 million, or $0.17 per share in the fourth quarter of 2016.

Year 2017 Financial Results

net sales were $8.0 million in 2017, compared to $4.0 million in 2016. This increase is mainly due to the higher number of implants

and a higher average revenue per implant in 2017 compared to the prior year.

profit in 2017 was $2.8 million, versus a gross loss of $6.1 million in the comparable 2016 period. Gross profit in 2017

included a credit of $3.1 million to partially reverse for a previously established reserve for slow-moving inventory and a $2.8

million charge for unabsorbed overhead costs. The gross loss in 2016 included a $4.7 million reserve for slow-moving inventory

and a $2.8 million charge for unabsorbed overhead costs.

operating expenses in 2017 were $31.5 million compared to $27.1 million in 2016. This increase is primarily due to higher

costs for compensation and outside consultants as the Company increased its commercial and development activities. Grant revenue,

which is used to offset research and development costs, also declined from $2.4 million in 2016 to approximately $400,000 in 2017,

and provided minimal expense offset during the year compared to the prior year period.

loss in 2017 was $28.6 million, compared to an operating loss of $33.2 million in 2016.

loss in 2017 was $28.5 million, or $0.53 per share, compared with a net loss of $33.2 million, or $0.84 per share

in 2016. The non-GAAP adjusted net loss in 2017, excluding non-cash expenses, was $27.6 million, or a loss of $0.51 per share,

compared with a non-GAAP adjusted net loss of $24.8 million, or $0.63 per share in 2016.

of December 31, 2017, Second Sight had $7.8 million in cash and money market funds.

previously announced, Second Sight management will host its fourth quarter and full year 2017 conference call as follows:

replay of the conference call will be available for two weeks after the call's completion by dialing (800) 633-8284 (U.S.)

or (402) 977-9140 (International). The conference ID for the replay is 21885326. The archived webcast will be available for

30 days via the aforementioned URL.

Sight's mission is to develop, manufacture and market innovative implantable visual prosthetics to enable blind individuals

to achieve greater independence. Second Sight has developed, and now manufactures and markets, the Argus II Retinal

Prosthesis System. Development of new hardware and software intended to improve the quality of the vision produced by the Argus

system is ongoing. Second Sight is also developing the Orion Visual Cortical Prosthesis to restore some vision to individuals

who are blind due to many causes other than preventable or treatable conditions. Second Sight's U.S. Headquarters are in

Sylmar, California, and European Headquarters are in Lausanne, Switzerland. For more information, please visit www.secondsight.com.

the Argus II Retinal Prosthesis System

Sight's Argus II System provides electrical stimulation that bypasses defunct retinal cells and stimulates remaining viable

cells inducing visual perception in individuals with severe to profound retinitis pigmentosa (RP). The Argus II works by converting

images captured by a miniature video camera mounted on the patient's glasses into a series of small electrical pulses, which

are transmitted wirelessly to an array of electrodes implanted on the surface of the retina. These pulses stimulate the retina's

remaining cells, intending to result in the perception of patterns of light in the brain. The patient must learn to interpret

these visual patterns, having the potential to regain some visual function. The Argus II was the first artificial retina to receive

widespread commercial approval, and is offered at approved centers in Canada, France, Germany, Italy, Russia, Saudi Arabia, Singapore,

South Korea, Spain, Taiwan, Turkey, the United Kingdom, and the United States. Further information on the long-term benefits and

risks can be found in the peer reviewed paper at: http://www.sciencedirect.com/science/article/pii/S0161642016305796

the Orion Visual Cortical Prosthesis System

the Argus II, the Orion converts images captured by a miniature video camera mounted on the patient's glasses into a series of

small electrical pulses. The Orion is designed to transmit these electrical pulses wirelessly to an array of electrodes implanted

on the surface of the visual cortex, intended to result in the perception of patterns of light. By bypassing the retina and optic

nerve and directly stimulating the visual cortex, a cortical prosthesis system has the potential to restore useful vision to many

more patients than the Argus II, including patients completely blinded due to many reasons, including glaucoma, diabetic retinopathy,

or forms of cancer and trauma. The Company has initiated a feasibility study in the U.S. at two centers: the Ronald Reagan UCLA

Medical Center and Baylor College of Medicine in Houston. The first-in-human subject was implanted and activated as part of the

first-in-human clinical studies with the Orion in 2018. No clinical data is yet available for the Orion.

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 and Exchange Act of 1934, as amended, which are intended to be covered by the "safe

harbor" created by those sections. All statements in this release that are not based on historical fact are "forward

looking statements." These statements may be identified by words such as "estimates," "anticipates,"

"projects," "plans," or "planned," "seeks," "may," "will," "expects,"

"intends," "believes," "should," and similar expressions, or the negative versions thereof, and

which also may be identified by their context. All statements that address operating performance or events or developments that

Second Sight expects or anticipates will occur in the future, such as stated objectives or goals, or that are not otherwise historical

facts, are forward-looking statements. While management has based any forward-looking statements included in this release on its

current expectations, the information on which such expectations were based may change. Forward-looking statements involve inherent

risks and uncertainties which could cause actual results to differ materially from those in the forward-looking statements, as

a result of various factors including those risks and uncertainties described in the Risk Factors and in Management's Discussion

and Analysis of Financial Condition and Results of Operations sections of our Annual Report, on Form 10-K, to be filed on or before

April 2, 2018, and our other reports filed from time to time with the Securities and Exchange Commission. We urge you to consider

those risks and uncertainties in evaluating our forward-looking statements. We caution readers not to place undue reliance upon

any such forward-looking statements, which speak only as of the date made. Except as otherwise required by the federal securities

laws, we disclaim any obligation or undertaking to publicly release any updates or revisions to any forward-looking statement

contained herein (or elsewhere) to reflect any change in our expectations with regard thereto, or any change in events, conditions,

or circumstances on which any such statement is based.

to Non-GAAP Financial Measures

addition to reporting all financial information required in accordance with generally accepted accounting principles (GAAP), the

Company is also reporting Non-GAAP net loss and Non-GAAP net loss per share which are non-GAAP financial measures. Non-GAAP net

loss and Non-GAAP net loss per share are not measurements of financial performance under GAAP and should not be used in isolation

or as a substitute or alternative to net income, operating income or any other performance measure derived in accordance with

GAAP, or as a substitute or alternative to cash flow from operating activities or a measure of the Company's liquidity.

In addition, the Company's definition of Non-GAAP net loss and Non-GAAP net loss per share may not be comparable to similarly

titled non-GAAP financial measures reported by other companies. Non-GAAP net loss and Non-GAAP net loss per share, as defined