This medical device company, while not yet making a profit, is forecast for double-digit growth this year and next. It is also rated ‘Buy’ by Zacks and three other brokerage companies.
Mazor Robotics (MZOR)
From Global Investing
Mazor Robotics (MZOR), the Israeli maker of spine and brain surgery guidance software, sold 11 of its Renaissance systems, 6 in the USA during its Q2, producing revenues of $8.3 million, up 6% year/year, although one of the US sales was a trade-in and was not booked for the quarter.
We bought into MZOR after its key commercial deal with Medtronics plc, a company we owned before its spinoff, which gave MZOR $47.5 million in cash to advance its new platform, Mazor x. Additionally, a Medtronics order for 15 of its new systems is scheduled to be delivered in H2.
Mazor presented data on two trials at the International Meeting on Advanced Spine tech last month. While sales were up and recurring revenue for parts and service hit $4.2 million, up 31%, MZOR is still losing money, in the amount of $4.1 million this year compared to a mere $2.1 million last year. Per share this came to 9 cents versus 5 cents. The company has $47.6 million in cash on hand now, including the initial equity investment by Medtronics of $11.9 million. The next payment comes this month.
MZOR reports in International Financial Reporting Standards and, as usual, produces adjusted figures showing that it really only lost $3.9 million, or 9 cents/share, mainly because of the impact of options issued to its staff.
Vivian Lewis, Global Investing, www.global-investing.com, 212-758- 9480, August 3, 2016