Mazor Robotics stock (MZOR) is in rally mode. What is interesting is that this rally in Mazor Robotics stock is on no real news.
Recall a month ago there were insider trading accusations which hit the stock. The government shutdown was also a problem for the company, so it could be that it is rallying on the government possibly staying open.
Here is what we do know.
Mazoe expects to report record revenue of approximately $65 million for the full year ended December 31, 2017. In addition, the Company expects to report record revenue of approximately $19 million for the fourth quarter, which is the Company’s strongest quarter for system orders and revenue.
In the fourth quarter of 2017, the company received purchase orders for 27 robotic guidance systems. This is the first full quarter since Medtronic assumed exclusive worldwide distribution of the Mazor X™ system for spine surgeries, as as part of the second phase of the commercial agreement between the companies.
The 27 orders are comprised of:
- 24 Mazor X systems, of which 23 were ordered by Medtronic.
- Three Renaissance system purchase orders from a U.S. customer and distribution partners in Germany and Thailand.
The company’s system backlog on December 31, 2017 was 16 systems (14 Mazor X and two Renaissance systems).
“The fourth quarter results demonstrate the successful and smooth transition of the Mazor X sales and marketing activities to Medtronic,” commented Ori Hadomi, Chief Executive Officer. “In addition, the co-development of innovative robotic spine solutions with Medtronic continues to make progress. At the same time, we are maximizing the market opportunities for Renaissance and evaluating potential new indications for our technologies.”
For the 2017 full year, the company received purchase orders for 73 systems, of which 64 were for the Mazor X system. The Company anticipates that Medtronic’s assumption of global commercial responsibility for the Mazor X will lead to increased market penetration and an accelerated number of Mazor X system installations during the coming years. As previously reported, from a financial results perspective, the anticipated revenue from Mazor X capital systems and disposables will be affected by the distribution model pricing with Medtronic.
Therefore, the company is currently anticipating modest revenue growth for 2018 compared to the preliminary 2017 record revenue of $65 million. As previously disclosed, the distribution agreement with Medtronic is expected to reduce the Ccompany’s full year 2018 sales and marketing expenses and deliver significant savings. Beyond 2018, revenue growth is expected to accelerate and be driven primarily by the expanding installed base and increased recurring revenues.
Effective with the first quarter of 2018, due to the commencement of the exclusive worldwide distribution agreement with Medtronic and consistent with industry practice, the company will no longer provide preliminary results for revenue, orders received and backlog. This information will be reported in full, as part of the quarterly and annual financial results releases.
The company intends to report its financial results for the fourth quarter and full year ended December 31, 2017 in mid-February. This could be a major catalyst for the stock.