Full Press Release Details
Second Sight Reports Second Quarter 2016
Sylmar, CA, July 28, 2016 - Second Sight Medical
Products, Inc. (NASDAQ: EYES) ("Second Sight" or "the Company"), a developer, manufacturer and marketer of
implantable visual prosthetics to provide some useful vision to blind patients, today reported financial results for the three-
and six-month periods ended June 30, 2016.
Recent Company Highlights:
"We appreciate the strong show of support from investors
through our recent Rights Offering. This infusion of cash will help us to continue funding the important work we do serving a growing
population who have lost their sight," stated Will McGuire, President and CEO of Second Sight. "We are also encouraged
by the higher proposed CMS reimbursement rate for 2017, which would cover both the Argus II and the associated surgical procedure.
Looking ahead, we believe that Second Sight is poised to see a rebound in implant numbers in the second half of the year and beyond,"
Sight Reports Second Quarter 2016 Financial Results
"We are also pleased with the publication
of the five-year data from the Argus II clinical trial. Results of the study show that the improvement in patients' visual
function was sustained over five years and the long-term safety profile and benefit of the Argus II have been confirmed. As we
move into the second half of 2016, we are excited about the enhancements to the Argus II externals and advanced software improvements
that are in development. Our position as the dominant industry player reflects these ongoing technological investments and the
growing evidence of the safety, reliability and longevity of our product. Our goal, as always, is to build a solid platform that
will deliver long-term growth to shareholders and to improve the quality of life for those in our patient population," concluded
Second Quarter 2016 Financial Results
Total revenue was $1.0 million for the second quarter of
2016, compared with $2.7 million in the second quarter of 2015. There were 11 Argus II retinal prostheses implanted in the
second quarter of 2016, compared to 20 for the second quarter of 2015. Although U.S. implant volumes rebounded modestly versus
the prior quarter, the Company's business in the second quarter of 2016 was still recovering from lower Medicare outpatient
payment rates, which became effective on January 1, 2016.
Gross loss was $2.2 million in the second quarter of 2016,
compared to a $1.1 million gross profit
in the second quarter of 2015. This gross loss is the result of approximately $1.0 million in revenue less $3.2 million in cost
of sales. This cost of sales figure is comprised of approximately $700,000 of product costs, approximately $1 million of unabsorbed
production costs due to a lower production volume and a one-time $1.5 million adjustment for excess inventory.
Total operating expenses in the second quarter of 2016 were $6.3
million, compared with $6.0 million in the second quarter of 2015, reflecting higher administrative costs, including higher stock-based
compensation and salaries.
Net loss in the second quarter of 2016 was $8.5 million,
or $0.23 per share, compared with a net loss of $4.9 million, or $0.14
per share, in the prior year quarter. The Company recorded non-cash charges of $2.3 million and $0.6
million during the second quarters of 2016 and 2015, respectively.
Non-GAAP adjusted net loss in the second quarter of 2016, excluding
non-cash charges, was $6.2 million, or a non-GAAP net loss of $0.17 per share, compared to a non-GAAP adjusted net loss of $4.3
million, or $0.12 per share, in the second quarter of 2015.
Six Months Ended June 30, 2016 and 2015 Financial Results
For the six months ended June 30, 2016, total revenue was $2.1
million compared to $4.4 million in 2015. The decline was primarily driven by a reduction in U.S.
implant volumes as a result of customer concerns that the new Medicare outpatient payment rate, which became effective on January
1, 2016, would be insufficient to cover costs of the Argus II and related surgical procedure.
Sight Reports Second Quarter 2016 Financial Results
Gross loss in first six months of 2016 was $2.1 million, versus
a gross profit of $1.5 million in 2015. The six month results for 2016 include the unabsorbed production costs and one-time
inventory adjustment mentioned above.
Total operating expenses during the first six months of 2016
were $12.3 million versus $11.4 million during the same period in 2015. This increase includes higher general and administrative
costs offset by lower R&D and clinical costs, including higher compensation and stock-based compensation costs.
Operating loss in the first half of 2016 was $14.3 million,
compared to an operating loss of $9.9 million in the comparable 2015 period.
Net loss for the six months ended June 30, 2016 was $14.3
million, or $0.39 per share, compared with a net loss of $9.9 million, or $0.28 per share in the prior year period. Non-GAAP
adjusted net loss for the six months ended June 30, 2016, excluding non-cash expenses, was $11.0 million, or a loss of $0.30 per
share compared with Non-GAAP adjusted net loss of $8.7 million and $0.24 per share in the prior year period.
As of June 30, 2016, Second Sight had $23.9 million in
cash, cash equivalents and investments, compared to $16.0 million as of December 31, 2015.
As previously announced, Second Sight management will host its
second quarter 2016 conference call as follows:
Sight Reports Second Quarter 2016 Financial Results
| Date | July 28, 2016 | |
| Time | 4:30 PM EDT | |
| Telephone U.S: | (800) 891-9945 | |
| International: | (212) 271-4657 | |
| Webcast (live and archive) | www.secondsight.com under the 'Investor Relations' section. |
A 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 21815294. The archived webcast will be available for 30 days via the aforementioned URL.
About the Argus II Retinal Prosthesis System
Second Sight's Argus II System provides electrical stimulation
that bypasses the defunct retinal cells and stimulates remaining viable cells inducing visual perception in individuals with severe
to profound outer retinal degeneration such as 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 are intended to stimulate the retina's remaining
cells, resulting in the perception of patterns of light in the brain. The patient then learns to interpret these visual patterns,
thereby regaining some useful vision. The system is controlled by software and is upgradeable, which may provide improved performance
as new algorithms are developed and tested. Therefore current and future Argus II users may benefit from the continuously improving
The Argus II is the first artificial retina to receive widespread
approval, and is offered at approved centers in Austria, Canada, France, Germany, Italy, Netherlands, Saudi Arabia, Spain, Switzerland,
Turkey, United Kingdom and the United States.
Second 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. Enrolment has been completed in a feasibility trial
to test the safety and utility of the Argus II in individuals with Dry Age-Related Macular Degeneration. Second Sight is also developing
the Orion I Visual Cortical Prosthesis to restore some vision to individuals who are blind due to causes other than
preventable or treatable conditions. U.S. Headquarters are in Sylmar, California, and European Headquarters are in Lausanne, Switzerland.
For more information, visit www.secondsight.com.
Sight Reports Second Quarter 2016 Financial Results
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
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," "potentially," "objectives," and similar expressions or the negative versions thereof and
which also may be identified by their context. 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 the Company's Annual Report on Form 10-K as filed
on March 11, 2016 and the Company's other reports filed from time to time with the Securities and Exchange Commission. We