 - Second Quarter Revenues Increase 21 to 8.9 Million - - U.S. WatchPATTM Revenues Increase 31 to 6.6 Million - - Company to Host Conference Call Today at 8:00 am ET, 3:00 pm IT - CAESAREA, Israel, Aug. 11, 2020 GLOBE NEWSWIRE -- Itamar Medical Ltd. Nasdaq and TASE: ITMR, a medical technology company focused on the development and commercialization of non-invasive medical devices and solutions to aid in the diagnosis of respiratory sleep disorders, today reported unaudited financial results for the second quarter of 2020.Our second quarter results reflect encouraging growth and we have taken several steps to capitalize on this momentum. The recent traction among both new and existing customers in the context of survey results from 300 centers indicating volumes of 70 Home Sleep Apnea Tests versus volumes of 30 in-lab1 is a testament to the advantage of our home-based and digital care pathway sleep solutions and our ability to reach the large undiagnosed patient population suffering from sleep apnea, said Gilad Glick, President and Chief Executive Officer of Itamar Medical.While we are pleased with our solid results, there are still many macro factors that remain fluid as the pandemic unfolds, leading to our cautious near-term outlook as we approach the second half of the year. Nonetheless, this does not change our long-term value proposition or market opportunity, concluded Glick.Second Quarter 2020 Highlights Revenues in the second quarter of 2020 were 8.9 million, an increase of 21 year-over-year. U.S WatchPAT revenues in the second quarter of 2020 were 6.6 million, an increase of 31 year-over-year.Recent Business and Production Updates Doubled WatchPAT ONE production capacity from approximately 3,000 units per week in May to approximately 6,000 units per week in June to meet the overwhelming demand as seen in our backlog from the first quarter, which, as a result, is now normalized. Active centers using WatchPAT ONE reached a total of 291 after onboarding over 10 new customers per week on average throughout the second quarter.Second Quarter 2020 Financial ResultsRevenues for the second quarter of 2020 increased 21 to 8.9 million, compared to 7.4 million in the same quarter in 2019. Revenue growth was driven by an increase in WatchPAT sales in the U.S. and Japan, offset by a decrease in WatchPAT sales in Europe and in the rest of the world.WatchPAT revenues for the second quarter of 2020 increased 20 to 7.9 million, compared to 6.5 million in the same quarter in 2019.U.S. WatchPAT revenues for the second quarter of 2020 increased 31 to 6.6 million, compared to 5.0 million in the same quarter in 2019, driven primarily by WatchPAT ONE sales as well as WatchPAT Direct sales. Sales from disposables and renewable products, including WatchPAT ONE, comprised approximately 78 of WatchPAT revenues in the U.S. in the second quarter of 2020, compared to 65 in the same quarter in 2019.Gross profit for the second quarter of 2020 increased to 6.0 million, compared to 5.7 million in the same quarter in 2019. Gross profit margin for the second quarter of 2020 decreased to 68, compared to 78 in the same quarter in 2019. Non-IFRS gross profit margin for the second quarter of 2020 decreased to 70, compared to 79 in the same quarter in 2019 See Use of Non-IFRS Measures below. Gross margin decline was manly driven by the increase in WatchPAT ONE sales.Operating loss for the second quarter of 2020 was 3.2 million, compared to 1.7 million in the same quarter in 2019. The increase in operating loss was primarily attributable to an increase in operating expenses, partially offset by the increase in revenues. Selling and marketing expenses increased 31 to 5.9 million, compared to 4.5 million in the same quarter in 2019, due to the planned expansion of the U.S. sales team into new geographical territories and verticals 32 territories and verticals as of June 30, 2020, compared to 27 territories and verticals as of June 30, 2019, as well as additional sales commissions resulting from the increase in revenues. Research and development expenses increased 22 to 1.4 million, compared to 1.1 million in the same quarter in 2019, driven by an increase in personnel to support product development including the digital health platform.Non-IFRS operating loss for the second quarter of 2020 was 2.4 million, compared to 0.9 million in the same quarter in 2019. Non-IFRS operating loss excludes approximately 0.8 million in share-based payments; depreciation and amortization of property and equipment and intangible assets; change in provision for doubtful and bad debt; and expenses relating to reduction in manpower, compared to 0.8 million of similar expenses for the same quarter in 2019 see Use of Non-IFRS Measures below.Net loss for the second quarter of 2020 was 3.2 million, compared to 2.0 million in the same quarter in 2019.Non-IFRS net loss for the second quarter of 2020 was 2.4 million, compared to 1.2 million in the same quarter in 2019. Non-IFRS net loss excludes approximately 0.8 million in share-based payments; depreciation and amortization of property and equipment and intangible assets; change in provision for doubtful and bad debt; expenses relating to reduction in manpower; and gain from reevaluation of derivatives, compared to 0.7 million of similar expenses and gains for the same quarter in 2019 see Use of Non-IFRS Measures below. As of June 30, 2020, the Company had cash, cash equivalents and a short-term bank deposit of 45.2 million.First Half 2020 Financial Results Revenues for the six months ended June 30, 2020 increased 29 to 17.3 million, compared to 13.4 million for the six months ended June 30, 2019. Revenue growth was driven by an increase in WatchPAT sales in the U.S. and Japan, offset by a decrease in WatchPAT sales in the rest of the world.WatchPAT revenues for the six months ended June 30, 2020 increased 30 to 16.1 million, compared to 12.3 million for the six months ended June 30, 2019.U.S. WatchPAT revenues for the six months ended June 30, 2020 increased 36 to 12.7 million, compared to 9.3 million for the six months ended June 30, 2019. U.S. WatchPAT revenues increase was primarily driven by the increase of WatchPAT ONE as well as WatchPAT Direct sales.Gross profit for the six months ended June 30, 2020 increased to 12.3 million, compared to 10.4 million for the six months ended June 30, 2019. Gross profit margin for the for the six months ended June 30, 2020 was 72, compared to 77 for the six months ended June 30, 2019. Non-IFRS gross profit margin for six months ended June 30, 2020 decreased to 73, compared to 79 for the six months ended June 30, 2019 See Use of Non-IFRS Measures below. Gross margin decline was mainly driven by the increase in WatchPAT ONE sales.Operating loss for the six months ended June 30, 2020 was 5.2 million, compared to 3.0 million for the six months ended June 30, 2019. The increase in operating loss was primarily attributable to an increase in operating expenses, partially offset by the increase in revenues. Selling and marketing expenses increased 36 to 11.2 million, compared to 8.3 million in the first half of 2019, due to the planned expansion of the U.S. sales team into new geographical territories and verticals, as well as additional sales commissions resulting from the increase in revenues. Research and development expenses increased 29 to 2.7 million, compared to 2.1 million in the first half of 2019, driven by an increase in personnel to support product development including the digital health platform.Non-IFRS operating loss for the six months ended June 30, 2020 was 3.8 million, compared to 1.9 million for the six months ended June 30, 2019. Non-IFRS operating loss excludes approximately 1.4 million in share-based payments; depreciation and amortization of property and equipment and intangible asset; change in provision for doubtful and bad debt; and expenses relating to reduction in manpower, compared to 1.1 million of similar expenses for the six months ended June 30, 2019 see Use of Non-IFRS Measures below.Net loss for the six months ended June 30, 2020 was 5.2 million, compared to 3.1 million for the six months ended June 30, 2019.Non-IFRS net loss for the for the six months ended June 30, 2020 was 3.9 million, compared to 2.4 million for the six months ended June 30, 2019. Non-IFRS net loss excludes approximately 1.3 million in share-based payments; depreciation and amortization of property and equipment and intangible assets; change in provision for doubtful and bad debt; expenses relating to reduction in manpower; and gain from reevaluation of derivatives, compared to 0.7 million of similar expenses and gains for the six months ended June 30, 2019 see Use of Non-IFRS Measures below. Conference Call and Webcast InformationThe Company will host a conference call today at 8:00 a.m. Eastern Time, 3:00 p.m. Israel Time to review financial results and provide a corporate update.To listen live via webcast, please visit or by clicking here.To participate via phone, please use the dial in information: U.S. toll-free: 833-519-1272 International: 914-800-3844 Israel toll-free: 1-809-315-362 Conference ID: 8798951Please log in approximately 10 minutes prior to the scheduled start time. An archived webcast also will be provided in the Events and Presentations section of the Companys website. 