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Silk Road Medical (SILK)

Filed: 29 Jul 21, 4:07pm

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Silk Road Medical Reports Second Quarter 2021 Financial Results



SUNNYVALE, Calif. – July 29, 2021 – 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

 

Six Months Ended



June 30,

 

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

 

 

 

39 

Accumulated deficit

 

(260,124)

 

 

(238,891)

Total stockholders' equity

 

96,138 

 

 

107,500 

Total liabilities and stockholders' equity

$

168,206 

 

$

179,314