Business
Neuronetics Reports Second Quarter 2020 Financial and Operating Results
MALVERN, Pa., Aug. 04, 2020 (GLOBE NEWSWIRE) -- Neuronetics, Inc. (NASDAQ: STIM), a commercial stage medical technology company focused on designing,
About this update from Neuronetics, Inc.
[{"type":"text","content":"MALVERN, Pa., Aug. 04, 2020 (GLOBE NEWSWIRE) -- Neuronetics, Inc. (NASDAQ: STIM), a commercial stage medical technology company focused on designing, developing and marketing products that improve the quality of life for patients who suffer from psychiatric disorders, today announced its financial and operating results for the second quarter of 2020.\n Second Quarter 2020 Summary Second quarter 2020 revenue was $9.7 million, compared to second quarter 2019 revenue of $16.6 millionSecond quarter operating expenses declined by 25%, or $4.7 million as compared to the second quarter of 2019 as a result of cost reduction initiatives Installed base was 1,122 systems, as of June 30, 2020, an increase of 15% over the prior year periodCash and cash equivalents were $54.0 million as of June 30, 2020 Recent Operational Highlights On July 14, 2020, the Company appointed Keith J. Sullivan as President and Chief Executive Officer. Mr. Sullivan was also appointed to the Company’s Board of Directors.The Company received a number of favorable reimbursement decisions, primarily related to a reduction in failed pharmacotherapy treatments prior to approved use of NeuroStar® Advanced Therapy from Cigna, Aetna, and HCSC / BCBS, who in aggregate cover approximately 53 million lives in the U.S. “I am excited to join Neuronetics and lead the team on our critical mission to improve mental health for an underserved patient population by expanding access to NeuroStar® Advanced Therapy,” said Keith J. Sullivan, President and Chief Executive Officer of Neuronetics. “The world is facing an unprecedented challenge with COVID-19. I believe we have taken the right steps to position our company to emerge on the other side of the pandemic in a strong financial position and ready to execute on our business strategy.” “This quarter was negatively impacted due to the effects of COVID-19; however, our results were favorable to our internal expectations established at the beginning of the quarter. The company experienced positive commercial trends during the second half of the quarter, and we are anticipating these trends will continue through the remainder of the year,” said Steve Furlong, Chief Financial Officer of Neuronetics. “Further, the cost reduction efforts announced in April will enable Neuronetics to execute against our operating plan and maintain our robust...