TearLab Corporation (NASDAQ:TEAR) Q4 2014 Earnings Conference Call - Final Transcript

Mar 12, 2015 • 04:30 pm ET


TearLab Corporation (NASDAQ:TEAR) Q4 2014 Earnings Conference Call - Final Transcript


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Good day, ladies and gentlemen and welcome to the TearLab Corp. Fourth Quarter Earnings Conference Call. At this time, all participants are in a listen-only mode. Later, we will conduct a question-and-answer session and instructions will follow at that time. (Operator Instructions) As a reminder, this conference call is being recorded.

I would now like to turn the conference over to Bill Dumencu, TearLab's Chief Financial Officer. You may begin.

Bill Dumencu

Thank you, Victoria. (Forward-Looking Cautionary Statements) I'd like to now turn the call over to Elias Vamvakas, TearLab's Chairman and CEO.

Elias Vamvakas

Thanks, Bill and good afternoon, everyone. As with previous calls, we would like to take this opportunity to update you on our progress with respect to the commercialization of the TearLab System. As we reported earlier today, total revenues in Q4 2014 were $5.3 million, that's up 19% from Q4 2013. Our net loss for the quarter was $0.13 per share.

As we've discussed in the past 2014 was a building year for us with our primary focus being on improving the integration of the TearLab Osmolarity test into the daily routines of our customers. In keeping with that we put a hold on selling the devices from the floor of congresses for much of the year. In addition our primary focus was on the integration and implementation of our cash with our current customer base rather than the expansion of our installed base. And based on all we learned through the first three quarters, we felt comfortable that it was the right time to engage our selling efforts at AAO this October.

Armed with our new messaging campaign and contract we had one of the most successful AAOs ever from a sales perspective. We finished the meeting with orders in hand for 75 units and a good number of leads. Our sales team who have been busy throughout November and December both working those through the on-boarding process and also starting to follow up with many qualified leads for new accounts that came out of the meeting. The team's efforts ultimately translated into 239 system orders being booked in the fourth quarter. Of those 192 were under the new Flex contract, 29 Master's multi-unit programs, 5 were direct purchases and 30 were purchased outside the US. As a reminder, we only report net numbers.

To put fourth quarter sales team's success in perspective we booked more than twice as many systems in Q4 than the previous quarter. For the full year we increased our device footprint in the US by 799 units. 2014 revenues were $19.7 million that's a 35% year-over-year increase and our 2014 net loss was $0.71 per share. We ended the year with cash and cash equivalents totaling $16.3 million and as noted in our press release that does not include the $15 million raised upon the closing of our term loan financing that we announced last week.

Let me provide a little bit more color into our recent debt financing. CRG provided us with $15