Brainsway Reports Strong Momentum in Q1 for 2017
Company announces $3.7 million in signed lease commitments and $15 million in future lease agreements through 2021
HACKENSACK, N.J., June 08, 2017 - Brainsway Ltd. (TASE:BRIN), a leader in the advanced non-invasive treatment of brain disorders, announced today the promising results in the company’s financial reports for the first quarter (Q1) of 2017.
“During the first quarter of 2017, we worked hard on increasing the focus of our equipment leasing operation,” said Yaacov Michlin, the newly appointed CEO of Brainsway. “This is a part of Brainsway’s broader strategy to shift to a more flexible business model, allowing our customers to easily add a Brainsway Deep TMS system to their practice.”
This new strategy employs two types of lease agreements with its clients: a minimum initial fee with ongoing utilization fees that are based on usage and a higher reoccurring fee for unlimited usage of the device. According to Michlin, “This approach allows for quicker market penetration while also securing long term stability for the company with a more dependable future revenue stream.” This approach has been well received by the market.
“I believe that as an organization we continue to demonstrate to our customer base that we remain focused on working with them collaboratively,” said Joseph Perekupka, VP of North American Sales Operations for Brainsway. “The significant growth we have seen over the past year is a clear signal from the customer base that they support Brainsway’s focus of maintaining our commitment to customer service and growing patient awareness of the benefits of Deep TMS.”
In the first quarter of 2017, the company signed contractual commitments totaling nearly $3.7 million, which constitutes nearly 25% of Brainsway’s total current lease portfolio of $15 million in committed revenues. These figures do not include other additional revenue streams. Global revenue totaled $2.1 million, compared to $2.5 million in Q1 of 2016. The company remains optimistic to have more predictable earnings in the future and a steady stream of growth as a result of their new strategy. The gross profit for the United States totaled around $1.7 million in comparison to $2 million in the U.S. in Q1 of 2016. The company’s impressive financial results are indicative of the comprehensive solution for patients and providers in the U.S. market.
“Customer awareness of the quality of our service is increasing,” explains Michlin. “More psychiatrists and clinics than ever are showing interest in the company’s unique and patented Deep TMS device.”
Brainsway is well-positioned in the U.S., with growing numbers of marketing, support, and sales specialists across the country. Over 90 percent of the U.S. population now have access to insurance coverage for the reimbursement for Deep TMS. The company’s relentless commitment to advancing the science continues with the recent conclusion of its multicenter study of patients for obsessive compulsive disorder (OCD). Brainsway plans to release the results soon and looks forward to a strong 2017.