Mauna Kea Technologies Reports Second Quarter 2016 Sales

PARIS, July 12,2016 /PRNewswire/ --

Mauna Kea Technologies (Euronext: MKEA, OTCQX: MKEAY) inventor of Cellvizio®, the multidisciplinary confocal laser endomicroscopy platform, today announced its sales for the second quarter ended June 30, 2016 and provided an update on its business. The Company will host a conference call and webcast to discuss the second quarter 2016 results today (information below).

Sacha Loiseau, Ph.D., Founder and Chief Executive Officer of Mauna Kea Technologies declared: "Almost 12 months ago, Mauna Kea launched a strategy shift intended to both increase the global reach of Cellvizio and improve Mauna Kea's financial performance. Today's results represent an important and successful step towards the execution of the Company's partnership strategy, and additional evidence that worldwide clinical adoption of Cellvizio is increasing. Given our accelerating revenue growth, strategic partnerships with Cook Medical and Fujifilm China, our strengthened management team and the passionate commitment of all our employees, I am increasingly confident in our ability to make Cellvizio a must-have as the leading option for real-time cellular and molecular diagnosis of disease and an essential technology for a broad range of medical and surgical interventions."

Second Quarter 2016 Revenue Results by Category 



(in EUR thousands) - IFRS Q2 2016 Q2 2015
(June 30, 2016) (June 30, 2015) Change %
Systems 1,374 1,299 6%
% of total 55% 60%
Consumables 783 678 16%
% of total 31% 31%
Services 354 194 83%
% of total 14% 9%
Total Sales 2,511 2,170 16%

The Company shipped 22 Cellvizio systems in the second quarter 2016, including 5 systems placed under consignment, compared to 15 systems in the second quarter 2015 (and 10 systems in the first quarter 2016). In the quarter, the Company shipped 9 systems to its strategic partners, compared to 0 partner systems in the second quarter 2015, reflecting acceleration in the Company's strategic partnership model.

Consumable probes unit volume increased 25% to 217 units, compared to 173 probes in the second quarter 2015, and 10% above the 197 probes sold in Q1. The number of probe reorders (probes sold to existing customers) increased from 98 in the second quarter 2015 to 139 in the second quarter 2016, representing 42% growth year-over-year. The year-over-year and sequential increases in consumable probe sales, and particularly the reorder rate, reflect increased utilization of the Cellvizio systems along with growth of the installed base.

Second Quarter 2016 Revenue Results by Geography 



(in EUR thousands) Q2 2016 Q2 2015
- IFRS (June 30, 2016) (June 30, 2015) Change %
Americas 950 1,433 (34%)
% of total 38% 66%
Asia-Pacific 814 412 98%
% of total 32% 19%
EMEA 746 325 130%
% of total 30% 15%
Total Sales 2,511 2,170 16%

Benoit Jacheet, Chief Financial Officer of Mauna Kea Technologies, stated, "Solid sales growth in the second quarter reflects both the maturation of our strategic partnerships with Cook Medical and Fujifilm China as well as strong growth in clinical procedures with existing customers, as seen in the 42% growth in the number of probe reorders. Of note, while the 5 consignment system shipments in the quarter reduced reported revenue, they provided our U.S. sales team the opportunity to gain access to important new customer sites at attractive overall economics. On the balance sheet, improving operating efficiencies during the first half of the year and the financial benefits of a more capital efficient selling model helped to significantly reduce our cash burn by 46% (cash flows from operating and investing activities, excluding financing). As of June 30 2016, the company's cash balance totaled €5.7 million."

The company recorded solid growth in the Asia-Pacific region with significant sales momentum in China, reflecting an additional Chinese FDA clearance obtained in December 2015, as well as growth in Japan and Taiwan. Sales in the EMEA region more than doubled while sales in the Americas region decreased, reflecting the Company's emphasis on growing its installed base among high volume users through its consignment model.

Second Quarter 2016 Revenue Results by Activity 



(in EUR thousands) - IFRS Q2 2016 Q2 2015
(June 30, 2016) (June 30, 2015) Change %
Clinical 2,126 1,675 27%
% of total 85% 77%
Preclinical 385 495 (22%)
% of total 15% 23%
Total Sales 2,511 2,170 16%

First Half 2016 Revenue Results: confirmation of growth momentum 



(in EUR thousands) - IFRS 2016 2015 Change %
1st Quarter 1,954 1,855 5%
2nd Quarter 2,511 2,170 16%
% growth 29% 17%
Total 1H Sales 4,465 4,025 11%

First Half 2016 Revenue Results by Category 



(in EUR thousands) - IFRS 1H 2016 1H 2015
(June 30, 2016) (June 30, 2015) Change %
Systems 2,294 2,521 -9%
% of total 51% 63%
Consumables 1,464 1,157 27%
% of total 33% 29%
Services 708 348 103%
% of total 16% 9%
Total Sales 4,465 4,025 11%

The Company shipped 32 Cellvizio systems in the first half 2016, including 6 systems placed under consignment, compared to 27 systems in the first half 2015. Consumable probes unit volume increased 35% to 414 units, compared to 307 probes in the first half 2015. The number of probe reorders (probes sold to existing customers) increased from 191 in the first half 2015 to 306 in the first half 2016, representing 60% growth year-over-year. The year-over-year increases in consumable probe sales, and particularly the reorder rate, reflect increased utilization of the Cellvizio systems along with growth of the installed base.

First Half 2016 Revenue Results by Geography 



(in EUR thousands) 1H 2016 1H 2015
- IFRS (June 30, 2016) (June 30, 2015) Change %
Americas 1,760 2,367 -26%
% of total 39% 59%
Asia-Pacific 1,482 634 134%
% of total 33% 16%
EMEA 1,224 1,024 19%
% of total 27% 25%
Total Sales 4,465 4,025 11%

First Half 2016 Revenue Results by Activity 



(in EUR thousands) - IFRS 1H 2016 1H 2015
(June 30, 2016) (June 30, 2015) Change %
Clinical 3,604 2,949 22%
% of total 81% 73%
Preclinical 861 1,076 -20%
% of total 19% 27%
Total Sales 4,465 4,025 11%


Mauna Kea Technologies will host a conference call and webcast today at 7.30 PM (CET / Paris time) / 1:30 PM (ET / New York time) to discuss the Company's Q2 2016 Sales and to provide a business update. The conference call will be hosted by Sacha Loiseau (CEO) and Benoit Jacheet (CFO). To access the conference call, please use one of the following dial-in numbers and follow the instructions: 1-866-223-7781 (USA) / 00-800-6578-9868 (UK/France) / 1-416-340-2216 (other international), or join the webcast through the investor relations section of the Company's website at http://www.maunakeatech.com/en. A replay of the conference call will be available until July 19, 2016 through the following: 1-877-870-5176 (USA) / 1-858-384-5517 (UK and other international); Replay Pin Number: 4247506. In addition, the replay of the webcast will be available for one year.

About Mauna Kea Technologies  

Mauna Kea Technologies is a global medical device company focused on eliminating uncertainties related to the diagnosis and treatment of cancer thanks to real time in vivo microscopic visualization. The Company's flagship product, Cellvizio, has received clearance to sell a wide range of applications in more than 40 countries, including the United States, Europe, Japan, China, Canada, Brazil and Mexico.

For more information on Mauna Kea Technologies, visit http://www.maunakeatech.com

Mauna Kea Technologies
Benoit Jacheet
CFO investors@maunakeatech.com

United States
Zack Kubow / Lee Roth
The Ruth Group
+1-646-536-7020 / 7012
zkubow@theruthgroup.com / lroth@theruthgroup.com

U.S. Media
Christopher Hippolyte
The Ruth Group
+1-646-536-7023
chippolyte@theruthgroup.com

France and Europe
NewCap - Investor Relations
Florent Alba
+33 (0)1 44 71 94 94
maunakea@newcap.fr

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Disclaimer 

This press release contains forward-looking statements concerning Mauna Kea Technologies and its activities.  Such forward looking statements are based on assumptions that Mauna Kea Technologies considers to be reasonable. However, there can be  no  assurance  that  the  anticipated  events  contained  in  such  forward-looking  statements  will  occur.  Forward- looking statements  are  subject  to  numerous  risks  and  uncertainties  including  the  risks  set  forth  in  the  registration  document  of Mauna Kea Technologies registered by the French Financial Markets  Authority  (Autorité des marchés financiers (AMF))  on June 13, 2016  under  number  R.16-054  and  available  on  the  Company's  website  (http://www.maunakeatech.com),  and  to  the development  of  economic  situation,  financial  markets,  and  the markets  in  which   Mauna Kea Technologies  operates.  The forward-looking statements contained in this release are also subject to risks unknown to Mauna Kea Technologies or that Mauna Kea Technologies does not consider material at this time. The realization of all or part of these risks could lead to actual results, financial conditions, performances or achievements by Mauna Kea Technologies that differ significantly from the results, financial conditions, performances or achievements expressed in such forward-looking statements.

This press release and the information it contains do not constitute an offer to sell or to subscribe for, or a solicitation of an order to purchase or subscribe for, Mauna Kea Technologies shares in any country. 


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