Brainsway® USA Inc. announced today the results of its highest revenue generating quarter in its history
OREANDA-NEWS. Brainsway® USA Inc., a subsidiary of Brainsway Ltd. (TASE:BRIN), a leader in the advanced non-invasive treatment of brain disorders, announced today the results of its highest revenue generating quarter in its history. Financial reports for Q1 2016 showed a total revenue of $2.5 million, a 95 percent increase from Q1 2015, which closed at $1.3 million. The increase is mainly due to the sale of new systems and continued revenues from the company’s lease program.
“Our first quarter results mark a major milestone for Brainsway, demonstrating successful penetration into the U.S. market,” stated Joseph Perekupka, vice president of North American sales operations. “We view our customers as our partners, and we are committed to creating greater transparency in our company’s performance. This success demonstrates the medical community’s need for and acceptance of Deep Transcranial Magnetic Stimulation (Deep TMS), and we look forward to continuing to grow together with our customers.”
For the first time in the company’s history, Brainsway generated positive cash flow from operating activities last quarter. The gross margin increased by 103 percent – $2 million last quarter compared to $995,000 in Q1 2015. The net research and development expenses amounted to $1 million, which was similar in Q1 2015. The overall loss in Q1 2016 (non-GAAP) decreased by 69 percent (excluding the options benefit expenses), amounting to $370,000 compared to a $1.2 million loss in Q1 2015. The company’s cash and short-term deposits amount to approximately $12 million, which was the same as the previous quarter. Brainsway is currently focusing on four multicenter trials, including its trial on obsessive-compulsive disorder (OCD), for which it has recruited 58 out of the 98 patients required.
“We are enhancing our sales platform in all target countries, especially the United States. The business and medical communities show heightened interest in Deep TMS; Brainsway continues to build connections with strategic entities and key thought leaders including leading hospitals, psychiatrists and academic medical centers,” said Hadar Levy, chief financial officer of Brainsway. “Furthermore, we continue to consider distribution agreements in strategic sites around the world. Brainsway’s branding is characterized by strong technology, proven clinical trials, insurance coverage, an excellent reputation and an enormous market. In the upcoming quarters, we intend to continue increasing the presence of Deep TMS in our target markets.”