MARLBOROUGH, Mass. and BERLIN, Germany and YOKNEAM ILIT, Israel, Aug. 12, 2020 (GLOBE NEWSWIRE) -- ReWalk Robotics Ltd. (Nasdaq: RWLK) today announced its financial results for the three and six months ended June 30, 2020.
Highlights of and subsequent to the second quarter of 2020 include:
- Total revenue for the second quarter of 2020 was $1.7 million, compared to $0.9 million in the prior year quarter;
- Record Gross Margin of approx. 61.3% compared to 49.6% in the prior year quarter;
- Raised total of $10.6 million in gross proceeds from warrants exercise during the second quarter and a subsequent registered direct offering in July; and
- The Centers for Medicare and Medicaid Services ("CMS") issued Healthcare Common Procedure Coding System ("HCPCS") Level II Code K1007 in response to the Company's application. This decision, which will be effective on October 1, 2020, establishes the first such code for exoskeletons.
“We are satisfied with the progress we made during the second quarter” said Larry Jasinski, Chief Executive Officer of ReWalk, “Although we face challenges due to the impact of COVID-19, we were able to complete deliveries in Germany and the U.S., We have achieved a quarterly record gross margin, during July, we started promoting our two new distributed product lines and we set the basis for U.S. reimbursement with the achievement of the CMS code. We believe we are on the right track to improve our operating results and market value.”
Second Quarter 2020 Financial Results
Total revenue was $1.7 million for the second quarter of 2020, compared to $0.9 million during the prior year quarter. The increase was mainly due to a higher number of ReWalk Personal 6.0 units sold in Germany and the U.S which included several units that we could not complete their delivery during the first quarter of 2020 because of the Covid-19 restrictions.
Gross margin was 61.3% during the second quarter of 2020, compared to 49.6% in the prior year quarter. The increase is primarily due to higher number of units placed and increase in average selling price.
Total operating expenses in the second quarter of 2020 were $3.6 million, compared to $4.7 million in the prior year quarter. The decrease was mainly due to lower R&D spend as we completed the development of our ReStore® device.
Net loss was $2.9 million for the second quarter of 2020, compared to a net loss of $4.6 million in the prior year quarter.
Non-GAAP net loss was $2.7 million for the second of 2020 compared to $4.2 million during the prior year quarter. Reconciliation of net loss to non-GAAP net loss is included at the end of this press release.
Liquidity
As of June 30, 2020, ReWalk had $14.1 million in cash on its balance sheet and $4.8 million in short- and long-term debt. During July ReWalk closed a registered direct offering of ordinary shares and a concurrent private placement of unregistered warrants to purchase ordinary shares for approximately $9 million in gross proceeds.
About ReWalk Robotics Ltd.
ReWalk Robotics Ltd. develops, manufactures, and markets wearable robotic exoskeletons for individuals with lower limb disabilities as a result of spinal cord injury or stroke. ReWalk’s mission is to fundamentally change the quality of life for individuals with lower limb disability through the creation and development of market leading robotic technologies. Founded in 2001, ReWalk has headquarters in the U.S., Israel, and Germany. For more information on the ReWalk systems, please visit www.rewalk.com.
