ReWalk Robotics Ltd. has announced its financial results for the first quarter of 2015.
Total revenue increased 43% year-over-year from $445,000 during the first quarter of 2014 to $635,000 but declined from $1.5 million in the fourth quarter of 2014. Gross profit for the first quarter of 2015 was $33,000 as compared to a gross loss of $0.2 million in the first quarter of 2014. A company press release credits the impact of moving manufacturing operations to Sanmina in the second half of 2014 for this change.
Total operating expenses in the first quarter of 2015 were $5.6 million, a 100% increase over $2.8 million in the first quarter of 2014. The increase reflects ReWalk’s increased investment in sales, marketing, and research and development resources and the increased cost of being a publicly-traded company, according to the release.
Net loss was $5.7 million for the first quarter of 2015 compared with $5.1 million in the prior year quarter. Non-GAAP net loss for the first quarter of 2015 was $5.1 million compared with non-GAAP net loss of $2.9 million in the prior year quarter.
“Sales this quarter were less than expected as the number of units placed were impacted by longer cycle times to complete patient evaluation, training and processing of reimbursement claims,” Larry Jasinski, MBA, ReWalk CEO, stated in a press release. “During the quarter we made excellent progress in building our overall training infrastructure, expanding market awareness and creating a high level of qualified customer demand. Due to stronger customer interest, we are now directing more qualified leads to our training centers, which we believe will result in higher sales.”
The company reported 13 ReWalk systems were placed during the first quarter of 2015 compared to six systems during the first quarter of 2014 and 31 systems during the fourth quarter of 2014. ReWalk received new coverage decisions with a commercial private insurer and Workers’ Compensation groups in the United States and Germany, and ReWalk expanded its rehabilitation presence to include eight U.S. rehabilitation centers. Additionally, 10 new training centers were added in the first quarter of 2015.
New partnerships also were formed to distribute the ReWalk exoskeleton systems in Northern India and Denmark.