Aug 22 2017 – Jerusalem based Brainsway Ltd. (TASE:BRIN), a leader in the advanced non-invasive treatment of brain disorders, announced the Company’s financial results for the quarter ended June 30, 2017, which signifies another quarter of implementing the company’s new business model focused mainly on leasing Brainsway Systems to customers.
“We are very pleased with our increased revenues in the second quarter. Our goal is to have Brainsway deliver on our plan for consistent, long-term growth plan, based on increased demand for our unique Deep TMS systems and the expected steady growth in use and demand,” said Yaacov Michlin, Brainsway CEO. “The new bank credit, in addition to the company’s current cash, will satisfy our finance needs to accomplish our objectives without diluting our shareholders. Receiving this bank credit confirms the strength of our new business model.”
Joe Perekupka, VP of North American Sales Operations, stated, “Our sales team continues to focus intently on growing our equipment leasing business, which is an integral part of Brainsway’s broader strategy shift to a flexible business model allowing more customers to easily add a Brainsway Deep TMS system to their practices.”
Mr. Michlin added, “Our leasing activity demonstrates customers’ recognition of the competitive advantages of our systems and their intention to increase the number of patients they will treat. Brainsway has a large customer base and most of the agreements signed by the company are 3 to 5 years in length. These agreements boost the company’s expected revenue potential, as reflected in an increase in the backlog revenue.”
As part of implementing the company’s system leasing model, Brainsway is providing the backlog revenue expected from all of the company’s lease contracts signed with customers as of June 30, 2017. At the end of second quarter 2017, the estimated minimum revenue (before usage fees) are $19.1 million, an increase of 27%, compared to the estimated minimum revenues (before usage fees) of $15.0 million reported at the end of the first quarter of 2017