ViewRay, Inc. (NASDAQ:VRAY) Q2 2019 Earnings Conference Call Transcript

Aug 08, 2019 • 04:30 pm ET

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ViewRay, Inc. (NASDAQ:VRAY) Q2 2019 Earnings Conference Call Transcript

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Presentation
Operator
Operator

Good afternoon, ladies and gentlemen, and welcome to ViewRay Second Quarter 2019 Earnings Conference Call. [Operator Instructions]

I would now like to turn the conference over to your host, Ms. Michaella Gallina, Head of Investor Relations. Ma'am, you may begin.

Executive
Michaella Gallina

Thank you, operator. Good afternoon, everyone and welcome to ViewRay Second Quarter 2019 Financial Results Conference Call. Joining me today is Scott Drake, our President and Chief Executive Officer. Earlier today, ViewRay issued a press release announcing its second quarter 2019 financial results. The release is available on the Investor Relations portion of our website at www.viewray.com. This call is also being broadcast live over the Internet via our investor relations site, and a replay of the call will be available on the website for 14 days.

Before we begin, I would like to caution listeners that comments made by management during this call may include forward-looking statements within the meaning of Federal Securities Laws. These statements involve material risks and uncertainties and actual results could differ from those projected in any forward-looking statements due to numerous factors including those discussed in the Risk Factors section of ViewRay's Form 10-Q for the year ended March 31, and June 30, 2019. And any subsequent reports filed with the Securities and Exchange Commission including our Form 10-K for the year ended December 31, 2019.

Furthermore, the content of this conference call contains time-sensitive information accurate only as of today August 8, 2019. ViewRay undertakes no obligation to revise or otherwise update any statements occurred by events or circumstances after the date of this call.

I will now turn the call over to Scott.

Executive
Scott Drake

Thank you, Michaella. Good afternoon, everyone, and thanks for joining our call. Today, we will provide revised 2019 revenue and cash guidance. I'll announce executive and board changes, provide context on the maturation of our business, one-year into my role. We'll review financials and open the line for questions.

Let's start with guidance. We're updating our 2019 revenue guidance to be between $80 million and $95 million with 12 to 15 installations and three upgrades. The reduction in our guidance is partially offset due to one system moving into 2019 as we will be able to recognize a significant portion of revenue at the time of delivery of that system. This guidance reduction is chiefly the result of three systems taking longer than anticipated in the vault planning and permitting process and the lack of certainty around the timing of two distributor orders. Although we're disappointed in this reduction, we believe it's the right course of action.

Let me share a detail on why these time frames have elongated. Regarding installations, as we've shared, we have built the vault readiness team to reduce variability, lower customer costs and speed the path from PO to first patient treated. Our stated target has been to reduce this time frame from approximately 18 to 12 months. This is a worthy goal for the benefit of patients, customers and shareholders. Generally speaking, installations fall