Mazor Robotics 2Q17 Revenue Up 87% Year Over Year

Mazor Robotics reported 2Q17 revenue of US $15.5MM, +86.7% from 2Q16, and 1H17 revenue of $27.2MM, +85.0% vs. 1H16.

2Q17 Geographic growth: U.S. $14.1MM, +110.4%; ex-U.S. $1.4MM, -12.5%

Organizational udpate:

• To prepare for next growth phase, combined R&D and product development into one unified department, headed by Oren Zarchin as VP Product Development
• Product Development Group will address market needs and future enhancement of spine products, co-developing with Medtronic (MDT)
• Formed Advanced Technologies group, headed by Eliyahu Zehavi, EVP, to leverage expertise in software and precision guidance for non-spinal innovations (in early innings)
• Created a new role, VP of Operations and Service, for Joshua Belkar

Performance highlights:

• Received 19 system purchase orders, ended quarter with backlog of 14 systems
• P.O.s included 16 Mazor X (7 as trade-ins in the U.S.), 3 Renaissance systems (2 for Australia and Thailand)
• Ended quarter with 170 systems installed worldwide (113 in the U.S.)
• Growth driven by strong order flow and high utilization, impact of co-marketing/co-promotional agreement with Medtronic (MDT)
• Reasonable to expect that the move to Phase II of MDT agreement could occur earlier than 1Q18 timeline
• In Phase II, all sales would be taken over by MDT globally, which would build a team to focus just on Mazor X sales

“It took our team more than five years to sell the first 82 Renaissance systems in the U.S. …We have received 58 orders [of the Mazor X]
in ten months. This sharp penetration rate is an indicator that the dialogue in spine robotics is no longer about if our portfolio of
guidance systems can help in the OR, but about where robotics can contribute more.”—Ori Hadomi, Chief Executive Officer

Source: Mazor Robotics Ltd