First quarter revenue for TearLab (NASDAQ:TEAR; TSX:TLB) rose 25% to $6.8-million from $5.4-million a year ago.
A net total of 257 TearLab Osmolarity Systems were added in the first quarter of 2016, of which 167 were under the company’s new Flex program and 61 were purchased outside of the U.S.
“While we had to make some difficult decisions in the quarter to reduce spending and improve our operating efficiency, we have redeployed our sales force and support staff levels to optimize the new commercial model,” CEO, Seph Jensen, said in a statement.
“With increases in our device placements, accounts and average revenues for Flex customers, it is clear these changes are already starting to pay off,” he added. “Overall, we are pleased with our Q1 performance, and believe the company is well-positioned for continued growth and improvement through the remainder of the year.”
TearLab continues to expect annual revenue growth of 15% to 20% for all of 2016.
In addition, the company believes it will start realizing the full impact of an annualized operating expense reduction of $12.9-million ($9.4-million from the strategic restructuring and $3.5-million from the OcuHub divestment), beginning in the second quarter of 2016.
As a result, the company expects its cash burn under its new operating model for the remainder of 2016 to be in the range of $7.5-million to $8.5-million.