LabStyle Innovations Announces 2015 Second Quarter Results

CAESAREA, Israel, Aug 12, 2015 /PRNewswire/ -- LabStyle Innovations Corp. (OTCQB: DRIO), developer of the Dario™ Diabetes Management Solution, today reported financial and operational results for the three-month period ended June 30, 2015, provided an update on recent corporate achievements, and an outlook on upcoming milestones.

“The Dario has met with very positive acceptance from users and healthcare communities in the national markets in which it has been launched, affirming our belief that the Dario will become the leading smart glucose meter and diabetes management solution. The global $12 billion glucose monitoring market is ripe for an innovative solution like the Dario which leverages mobile technologies and provides a real time, cloud-based solution that has proven itself as highly engaging for patients,” stated Erez Raphael, LabStyle’s Chairman and Chief Executive Officer.

“The strong growth in our sequential quarter-over-quarter financial results, we believe, is an indicator of future trending as we anticipate rolling out in multiple markets each quarter.”

“We look forward to achieving major milestones in the second half of 2015. As we enter new markets, we are proud to have the opportunity to help make life easier for the millions of people living with diabetes,” Raphael concluded.  

LabStyle CFO Zvi Ben-David commented, “Driven by growing revenues and continued increases in operational efficiencies, we reduced both GAAP and non-GAAP adjusted EBITDA by 34% and 51% respectively, in the second quarter of the current year, as compared to the second quarter of 2014. As we gain regulatory approvals in more countries and build market traction for the Dario, we are committed to cost-containment and building economies of scale with a goal towards positive cash flow.” 

• LabStyle presented a Late Breaking Poster at the American Diabetes Association’s 75th Anniversary Scientific Session titled, “Performance of Dario Blood Glucose Monitoring System Evaluated in a Clinical Study in Compliance with the New ISO 15197:2013 Standard,” showing the Dario Diabetes Management Solution delivered excellent clinical performance and very positive user experience

Summary of Financial Results

LabStyle’s deliveries of products and software services to distribution partners and customers in the second quarter of 2015 amounted to approximately $250,000 compared to approximately $141,000 in the first quarter of 2015 and approximately $63,000 in the second quarter of 2014. This includes product shipments to distributors and direct customers, as well as services provided with respect to LabStyle’s patient management software platform launch as part of the partnership with Maccabi Healthcare. 

LabStyle’s revenues for the second quarter of 2015 amounted to approximately $175,000 compared to approximately $67,000 in the previous quarter and none in the second quarter of 2014.

Deferred revenues for the second quarter of 2015 amounted to approximately $78,000 compared to approximately $56,000 in the first quarter of 2015 and $24,000 in the fourth quarter of 2014. 

GAAP net loss, as detailed in the table below decreased by approximately $1,096,000 or 34% to approximately $2,158,000 for the second quarter of 2015, compared to approximately $3,254,000 GAAP net loss in the second quarter of 2014. 

Non-GAAP adjusted EBITDA for the three months ended on June 30, 2015, as detailed in the table below, decreased by approximately $1,412,000 or 51% to approximately $1,341,000 for the second quarter of 2015, compared to approximately $2,753,000 Non-GAAP adjusted EBIDTA in the second quarter of 2014. 

  

As of June 30, 2015 cash and cash equivalents amounted to approximately $981,000. Subsequent to June 30, 2015 the Company raised approximately $1,371,000, net of issuance costs, through a sale of 5,143,863 shares of the Company's Common Stock and 5,143,870 warrants to purchase 5,143,870 shares of the Company's Common Stock.