ReWalk Robotics (Lifeward) announced its financial results for the three months ended March 31.
Revenue was $5.3 million in the first quarter (1Q), compared to $1.2 million during 1Q 2023, up $4.1 million, or 340 percent.
Revenue from the sale of products from the former business and ReWalk business was $2.5 million, up $1.3 million, or 90 percent compared to the prior year, which was primarily driven by an increase in ReWalk system revenue from the expansion of access through Medicare payment.
Revenue from the sale of AlterG products and services was $2.8 million. The AlterG revenue was adversely affected by the temporary impact of the integration and training of the former ReWalk and AlterG commercial teams, which resulted in reduced sales capacity during ramp-up to full productivity.
Gross margin was 26.4 percent, compared to 46.4 percent in 1Q 2023. Adjusted gross margin was 33.7 percent, compared to 46.2 percent in 1Q 2023, a 12.5 percentage point decline. This decline was primarily attributable to low volumes of AlterG product sales that resulted in adverse absorption of production and overhead costs, combined with the mix of sales of ReWalk systems.
Total operating expenses were $7.9 million, compared to $4.9 million in 1Q 2023.
Operating loss was $6.5 million, compared to $4.3 million in 1Q 2023.
Net loss was $6.3 million, or $0.73 per share, compared to a net loss of $4.3 million, or $0.51 per share, in 1Q 2023.
As of March 31, ReWalk had $20.7 million in unrestricted cash and cash equivalents on its balance sheet with no debt. Cash used in operations was $7.7 million, which was affected by the unfavorable gross margin in the quarter and the timing of working capital utilization.
