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Exploring ViewRay’s Operational Performance

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Operating expenses

ViewRay (VRAY) incurred general and administrative expenses of $10.5 million in the second quarter compared to $7.46 million in the second quarter of 2017. Its selling and marketing expenses increased from $1.87 million in the second quarter of 2017 to $3.39 million in the second quarter of 2018 due to an increase in its head count to support its growing sales efforts.

ViewRay’s research and development expenses also increased from $3.25 million in the second quarter of 2017 to $4.39 million in the second quarter of 2018 due to higher personnel expenses and product development costs.

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ViewRay’s total operating expenses increased from $12.58 million in the second quarter of 2017 to $18.29 million in the second quarter of 2018. This jump in operating expenses resulted in the company’s operating income falling from -$12.7 million in the second quarter of 2017 to -$18.22 million in the second quarter of 2018.

Bottom line

ViewRay’s interest expense increased from $1.79 million in the second quarter of 2017 to $1.92 million in the second quarter of 2018. ViewRay generated other income of $6.15 million in the second quarter of 2017. In the second quarter of 2018, on the other hand, it incurred other expenses of $1.86 million.

ViewRay’s net income was -$21.99 million in the second quarter compared to -$8.35 million in the second quarter of 2017, which translated into net EPS of -$0.30 in the second quarter of 2018. Its net EPS were -$0.15 in the second quarter of 2017. Its number of outstanding shares increased from ~57.23 million in the second quarter of 2017 to ~74.53 million in the second quarter of 2018.

We’ll take a look at ViewRay’s valuation metrics in the next article.

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