On the top line, revenues rose 32.3% year/year to $15.51 mln, which also came in above expectations. Sales in the quarter rose mainly due to increased recurring revenue from kit sales, services, and other.
U.S. revenue increased 27% to $14.2 mln compared to $11.2 mln in the year-ago first quarter. International revenue increased 160% to $1.3 mln compared to $0.5 mln in the year-ago first quarter.
Moving a bit further down the income statement, gross margins took a hit when compared to the prior year. Gross margins for the three months ended March 31, 2018 was 58.3% compared to 64.6% in the year-ago first quarter. This expected decrease is attributed mainly to the pricing terms with Medtronic.
However, total operating expenses were $10.5 mln compared to $13.3 mln in the year-ago first quarter, mainly due to lower selling and marketing expenses, following the transition to the global distribution phase of the Medtronic partnership.
The company said, "Our record first quarter revenue reflects clinical adoption, as we surpassed 33,000 cases performed, and the continued global demand for the Mazor X and Renaissance systems. Commercially, we successfully expanded into a new international market with the Mazor X and making progress penetrating into the Ambulatory Surgery Center ("ASC") market in the U.S. with the Renaissance.... finally, we are also advancing and expanding our technology development efforts with Medtronic, and I am pleased to share that commercialization of the Mazor X platform, which integrates Medtronic's Stealth navigation and offers a unique robot-guided implant solution that eliminates the need for guidewires, is expected at the end of 2018."
Today's weakness in the stock pulled it down below its 200-day moving average, putting it now below all of its major moving averages. In early morning trade so far here, the stock has traded over 286,000 shares and is about 1.3% lower.