Silk Road Medical Reports Second Quarter 2021 Financial Results

Thursday, 29. July 2021 22:05

SUNNYVALE, Calif., July 29, 2021 (GLOBE NEWSWIRE) -- Silk Road Medical, Inc. (Nasdaq: SILK), a company focused on reducing the risk of stroke and its devastating impact, today reported financial results for the quarter ended June 30, 2021.

“Our second quarter results reflect excellent commercial execution and broad strength across our business, as TCAR utilization increased in all segments of our trained physician base,” said Erica Rogers, President and Chief Executive Officer of Silk Road Medical. “We remain very optimistic about the future of TCAR, and we are particularly excited about the new evidence supporting TCAR in standard surgical risk patients as we prepare to expand our addressable market to include this patient population.”

Second Quarter 2021 Financial Results
Revenue for the second quarter of 2021 was $26.5 million, an increase of $11.4 million or 75%, compared to the second quarter of 2020. Second quarter revenue in 2020 included the recognition of $1.3 million in deferred revenue due to a decrease in the provision for sales returns related to certain prior sales with a shorter shelf life, coupled with the downward trend in the company’s historical returns rate. Excluding the contribution of the $1.3 million, second quarter revenue in 2021 increased 91% compared to the second quarter of 2020.

Gross profit for the second quarter of 2021 was $19.9 million compared to $9.8 million for the second quarter of 2020. Gross margin for the second quarter of 2021 increased to 75% compared to 65% in the second quarter of 2020. The prior period gross margin included unfavorable production variances as a result of temporarily idled manufacturing operations and lower demand due to COVID-19.

Operating expenses were $29.8 million for the second quarter of 2021, compared to $19.2 million in the corresponding prior year period, which represents an increase of 56%. The increase was driven by growth in personnel and continued commercialization and product development initiatives as well as the resumption of travel, tradeshow and other expenses as the impacts of COVID-19 declined compared to the second quarter of 2020.

Net loss was $10.5 million in the second quarter of 2021, or a loss of $0.31 per share, as compared to a loss of $10.4 million, or $0.32 per share, in the corresponding period of the prior year.

Cash, cash equivalents, and short-term investments were $128.1 million as of June 30, 2021.

2021 Financial Guidance

Silk Road Medical projects revenue for the full year 2021 to range from $104 million to $109 million, which represents 38% to 45% growth over the company’s prior year revenue. This compares to previous revenue guidance of $103 million to $108 million.

Conference Call
Silk Road Medical will host a conference call at 1:30 p.m. PT / 4:30 p.m. ET on Thursday, July 29, 2021 to discuss its second quarter 2021 financial results. The call may be accessed through an operator by calling (844) 883-3861 for domestic callers and (574) 990-9820 for international callers using conference ID: 8730669. A live and archived webcast of the event will be available at https://investors.silkroadmed.com/.  

About Silk Road Medical
Silk Road Medical, Inc. (NASDAQ: SILK), is a medical device company located in Sunnyvale, California, that is focused on reducing the risk of stroke and its devastating impact. The company’s flagship procedure, TransCarotid Artery Revascularization (TCAR), is clinically proven to treat blockages in the carotid artery at risk of causing a stroke. For more information on how Silk Road Medical is delivering brighter patient outcomes through brighter clinical thinking, visit www.silkroadmed.com and connect on Twitter, LinkedIn and Facebook.        

Forward-Looking Statements
This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934 and the Private Securities Litigation Reform Act of 1995. These statements include statements regarding the impact of COVID-19 on our business, financial guidance, progress made on achieving our corporate goals, and the overall strength of our business and culture. Such statements are based on current assumptions that involve risks and uncertainties that could cause actual outcomes and results to differ materially. These risks and uncertainties, many of which are beyond our control, include risks described in the section entitled Risk Factors and elsewhere in our filing made with the Securities and Exchange Commission in Silk Road’s Quarterly Report on Form 10-Q filing made with the Securities and Exchange Commission on May 10, 2021. These forward-looking statements speak only as of the date hereof and should not be unduly relied upon. Silk Road Medical disclaims any obligation to update these forward-looking statements.

Investors:
Lynn Lewis or Caroline Paul
Gilmartin Group
investors@silkroadmed.com

Media:
Michael Fanucchi
Silk Road Medical
mfanucchi@silkroadmed.com

SILK ROAD MEDICAL, INC.
Statements of Operations Data
(Unaudited, in thousands, except share and per share data)

        Three Months Ended June 30, Six Months Ended June 30,
         2021   2020   2021   2020 
               
               
Revenue   $26,456  $15,094  $48,509  $34,027 
Cost of goods sold  6,598   5,336   12,137   10,586 
     Gross profit  19,858   9,758   36,372   23,441 
Operating expenses:        
 Research and development  7,261   3,393   12,744   6,522 
 Selling, general and administrative  22,549   15,758   43,743   35,450 
     Total operating expenses  29,810   19,151   56,487   41,972 
     Loss from operations  (9,952)  (9,393)  (20,115)  (18,531)
Interest income  47   299   142   702 
Interest expense  (628)  (1,203)  (1,250)  (2,406)
Other income (expense), net  (6)  (56)  (10)  (59)
     Net loss  (10,539)  (10,353)  (21,233)  (20,294)
               
Other comprehensive loss:        
 Unrealized gain (loss) on investments, net  (3)  (126)  (36)  314 
Net change in other comprehensive loss  (3)  (126)  (36)  314 
               
Net loss and comprehensive loss $(10,542) $(10,479) $(21,269) $(19,980)
               
               
Net loss per share, basic and diluted $(0.31) $(0.32) $(0.62) $(0.63)
               
Weighted average common shares used to compute net loss per share, basic and diluted  34,534,099   32,682,360   34,435,812   32,010,335 
               

SILK ROAD MEDICAL, INC.
Balance Sheets Data
(Unaudited, in thousands)

        June 30, 2021 December 31, 2020
           
Assets       
Current assets    
 Cash and cash equivalents $101,849  $69,466 
 Short-term investments  26,293   78,016 
 Accounts receivable, net  11,747   9,070 
 Inventories  12,771   9,989 
 Prepaid expenses and other current assets  5,877   6,787 
     Total current assets  158,537   173,328 
 Property and equipment, net  3,428   2,844 
 Restricted cash  310   310 
 Other non-current assets  5,931   2,832 
     Total assets $168,206  $        179,314 
Liabilities and stockholders' equity    
Current liabilities    
 Accounts payable $1,958  $2,598 
 Accrued liabilities  14,705   16,957 
     Total current liabilities  16,663   19,555 
 Long-term debt  48,614   48,533 
 Other liabilities  6,791   3,726 
     Total liabilities  72,068   71,814 
           
Stockholders' equity    
 Preferred stock, $0.001 par value  -   - 
 Common stock, $0.001 par value  35   34 
Additional paid-in capital  356,224   346,318 
Accumulated other comprehensive income  3   39 
Accumulated deficit  (260,124)  (238,891)
     Total stockholders' equity  96,138   107,500 
     Total liabilities and stockholders' equity $168,206  $179,314 
           

 


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