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Exalenz Announces Third Quarter 2018 Financial Results
[November 15, 2018]

Exalenz Announces Third Quarter 2018 Financial Results


Third quarter 2018 revenue increased 25% to $3.2 million, compared with $2.5 million in same period in 2017 

Third quarter 2018 gross profit increased 60% compared to same period in 2017

MODI’IN, Israel and MANASQUAN, N.J., Nov. 15, 2018 (GLOBE NEWSWIRE) -- Exalenz Bioscience Ltd. (TASE: EXEN), a leader in developing and marketing non-invasive medical devices for diagnosing and monitoring a range of gastrointestinal and liver diseases, today reported financial results for the three months ended September 30, 2018.

Third Quarter 2018 and Recent Highlights

  • The Company presented positive clinical data from a Phase II trial, conducted by Galectin Therapeutics in NASH cirrhosis patients for the BreathID® 13C-Methacetin Breath Test (MBT) System. The study which indicated that MBT has the potential to predict liver decompensation in patients with compensated NASH cirrhosis was presented at the Liver Meeting® 2018.
     
  • During August and September, the Company raised gross proceeds of approximately $6.4 million (23.1M ILS) in a public offering (in the Tel Aviv stock exchange) and through increasing its bank credit line.

“We achieved solid year-over-year revenue growth reflecting continued penetration of the U.S. market for lab-based Helicobacter pylori testing,” stated Raffi Werner, CEO of Exalenz Bioscience.  ”We are excited about our collaborations with leading pharmaceutical companies applying our non-invasive breath test liver diagnostic in their NASH studies.”

Select Third Quarter 2018 Financial Results

Revenue for the third quarter of 2018 increased 25% to $3.2 million compared to $2.5 million in the third quarter of 2017. The increase in revenue was primarily driven by penetration of the lab market in the U.S.

Gross profit for the third quarter of 2018 increased 60% to $1.4 million compared to $0.8 million in the same period in 2017. The increase in gross profit was due mainly to the increase in sales and the increase in the proportion of recurring revenue.

Research and development expenses for the third quarter 2018, net, were $0.9 million compared to $1.0 million in the third quarter 2017.

Sales and marketing expenses were $0.9 million, or 28% of total sales, during the third quarter 2018, compared to $0.6 million, or 24% of total sales in the third quarter 2017. The increase in selling and arketing expenses in 2018 was due mainly to increased penetration of the lab market.



General and administrative expenses for the third quarter 2018 were $0.8 million compared to $0.4 million in the third quarter 2017. The increase was due mainly to share-based compensation expenses.

Operating loss was $1.1 million in the third quarter 2018, compared to an operating loss of $1.1 million in the third quarter 2017. Adjusted EBITDA loss for the third quarter was $0.5 million, compared to $1.0 million in the third quarter 2017.


Net loss amounted to $1.1 million in the third quarter 2018, similar to the net loss in the third quarter 2017, or $0.04 per basic and diluted share in both periods.

Select Financial Results the Nine Months Ended September 30, 2018

Revenue for the nine months ended September 30, 2018 increased 50% to $9.8 million, compared to $6.5 million during the same period of 2017. The increase in revenue was primarily driven by penetration of the lab market in the U.S.

Gross profit for the nine months ended September 30, 2018 increased by nearly 100% to approximately $3.7 million, compared to $1.8 million during the same period of 2017. The increase in gross profit was due mainly to the increase in sales and the increase in the proportion of recurring revenue.

Research and development expenses, net, were $2.8 million for the nine months ended September 30, 2018 compared to $2.7 million for the same period of 2017.

Sales and marketing expenses were $2.4 million, or 25% of sales for the nine months ended September 30, 2018, compared to $1.8 million or 27% of sales for the same period in the prior year, an increase of $0.6 million. The Company expects the sales and marketing expenses, as a proportion of total sales, to continue to decrease over time due to the Company’s focus on selling to larger customers and the increase of recurring revenues.

General and administrative expenses were $2.0 million for the nine months ended September 30, 2018, compared to $1.2 million in the same period in 2017. The increase was due mainly to share-based compensation expenses.

Operating loss for the nine months ended September 30, 2018 was $3.4 million, compared to an operating loss of $3.8 million in the same period in 2017.

Net loss for the nine months ended September 30, 2018 was $3.1 million, or $0.12 per basic and diluted share, compared to $4.1 million, or $0.16 per basic and diluted share, for the nine months ended September 30, 2017.

The Company’s complete financial results are available on the Tel Aviv Stock Exchange website.

About Exalenz Bioscience

Exalenz Bioscience develops and markets diagnostic tests and monitoring systems that use the breath to diagnose and help manage gastrointestinal and liver conditions. The company’s flagship BreathID® Hp offers the most efficient and accurate test for detection of H. pylori bacteria, associated with various illnesses including gastric cancer, and is already in use in over 400 U.S. medical centers and major labs across the country. The BreathID® 13C-methacetin breath test (MBT) is a sensitive, noninvasive, point of care tool that measures the microsomal function of the liver. Exalenz holds regulatory approvals in Europe, the United States, China and Israel for H. pylori detection and is currently evaluating additional applications of the BreathID® platform, including MBT in the detection of CSPH in patients with NASH. Additional information is available at www.exalenz.com.

Projections and Forward-Looking Information

This press release contains forward-looking statements with respect to plans, projections or future performance of the Company, the occurrence of which involves certain risks and uncertainties, some of which may not be under the control of Exalenz, including, but not limited to, changes in regulatory environment, Exalenz’s success in penetration of the laboratory market, including engaging national and regional laboratories, sales, marketing and manufacturing plans, protection and validity of patents and other intellectual property rights, and the effect of competition. The information in this document is a highly condensed summary of the highlights for the relevant period. For an appropriate full reporting and disclosure, the public is referred to the complete reports of the Company. Accordingly, the information provided in this document should not be relied upon in any form whatsoever in considering any investment in the Company or trading in its securities.

Contact Information

Investor Relations

David Carey
Lazar Partners
212-867-1768
[email protected] 


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