TriVascular has reported financial results for the three months ending 31 March 2014. The company’s recent accomplishments include revenue of US$7 million, up 139% over the first quarter of the prior year; gross margin of 47.9%, an increase from 32.4% in the first quarter of the prior year; completed initial public offering, receiving net proceeds of approximately US$81.2 million; FDA approval of clarified indication statements for percutaneous EVAR and proximal aortic neck; and CE mark for CustomSeal short cure fill polymer.
“We are pleased with our operational performance and financial results for the first quarter of 2014. Our initial public offering in April brought approximately US$81.2 million in net proceeds to the company, providing us the capital resources to fund our growth,” said president and chief executive officer, Chris Chavez. “We believe TriVascular is well-positioned to continue our strong momentum and execute our strategic initiatives to expand patient access to the Ovation system and, in the process, create a market-leading EVAR growth franchise.”
First quarter financial results
Revenue for the three months ended 31 March 2014 increased 139% to US$7 million, from US$2.9 million in the same period of the prior year. This increase is primarily attributable to the growth of US business and commercial rollout of the Ovation platform. Geographically, revenue in the USA was US$4.6 million, an increase of 389% from the three months ending 31 March 2013.
International revenue totalled US$2.4 million, an increase of 21.7% from the three months ended 31 March 2013, the company reports.
According to TriVascular, gross margin for the first quarter of 2014 was 47.9%, up from 32.4% in the three months ended 31 March 2013. The increase in gross margin was primarily due to spreading our manufacturing costs over higher production volumes and higher average selling prices associated with the growth of US revenue.
Operating expenses for the first quarter of 2014 were US$16.0 million, an increase of 49.9% compared to the first quarter of 2013.
The increase in operating expenses was driven primarily by an increase in selling, marketing and product development expenses.
Loss from operations for the first quarter of 2014 was US$12.6 million, compared to US$9.7 million for the first quarter of 2013. Net loss for the first quarter of 2014 was US$14.4 million, compared to US$11.3 million for the first quarter of 2013. Adjusted EBITDA, a non-GAAP measure, was a loss of US$12.0 million for the first quarter of 2014.
Cash and cash equivalents were US$31.4 million as of 31 March 2014. In April 2014, the company completed initial public offering raising net proceeds of approximately US$81.2 million, after deducting underwriting discounts and commissions and offering expenses.
2014 outlook
Management currently anticipates full year 2014 revenue will be in the range of US$32.0 million to US$36.0 million, representing an increase of 60% to 80% over 2013. Gross margin for the same period is currently expected to be in the range of 55% to 57%.
