TransEnterix (NYSE: TRXC) reported tough but better-than-expected results for its second quarter as it navigates a challenging COVID-19 pandemic environment.
The Research Triangle Park, N.C.–based robotic surgery company said yesterday evening that cost-saving initiatives and a $15 million underwritten public offering have provided enough cash to support operations into the second quarter of 2021.
TransEnterix reported earnings of –$14.1 million, or –27¢ per share, on sales of $700,000 for the three months ended June 30, 2020. The company earnings of –$20.2 million, or –$1.21 per share, off sales of $3.6 million during the same quarter a year ago.
Adjusted to exclude one-time items, earnings per share were –21¢, 17¢ ahead of The Street, where analysts were looking earnings of –38¢ per share on sales of $420,000.
“Despite operating in a challenging environment throughout the second quarter, we made significant progress towards our goals for the year, which include increasing system installations, increasing procedure volumes globally, and continuing to gain regulatory approvals for new technologies and expanding indications for use for the Senhance,” TransEnterix CEO Anthony Fernando said in a news release.
“Leveraging the momentum we generated in the first quarter, we were able to sign two new system leases in the quarter while at the same time maintaining the quality of our pipeline. Additionally, we made progress against our portfolio expansion and clinical validation efforts. While procedure volumes were down in the quarter, we saw a strong rebound from April to June which has continued into July.”
TransEnterix’s recent regulatory accomplishments include submitting a CE Mark application for its initial Intelligent Surgical Unit in the second quarter, with expected approval by the end of 2020. The company also filed an FDA 510(k) submission for a general surgery indication in the third quarter.
Because of the uncertainty around the pandemic, TransEnterix is not providing forward-looking revenue guidance at this time.
Investors reacted by sending TRXC shares down -8.4% to 44¢ apiece today pre-market trading today. MassDevice’s MedTech 100 Index — which includes stocks of the world’s largest medical device companies — was up 1% yesterday.