Developer and manufacturer of airway clearance therapy products for patients with compromised pulmonary function Electromed Inc. (ELMD:NYSE.AMEX) yesterday announced financial results for the three months ended September 30, 2019.
The company reported that net revenue in Q1/20 increased 14.1% to $8.3 million, up from $7.3 million in Q1/19, primarily driven by higher home care revenue, which rose 11.4% to $7.5. million, compared to $6.7 million in Q1/19. The firm noted that institutional revenue over the same period increased 49.2% to $650,000, up from $206,000 in the prior year's quarter.
The firm posted net income of $1.015 million in Q1/20 or $0.12 per fully diluted share, versus $0.157 million, or $0.02 per diluted share in Q1/19.
Electromed's President and CEO Kathleen Skarvan commented, "We delivered strong revenue and net income, driven by top-line growth of 14.1% and significant operating margin improvement compared to the prior year period. Home care revenue grew by 11.4% compared to our prior first quarter as we executed on our strategy to drive growth organically and achieved our second consecutive quarter of improved sales team productivity. This quarter we produced approximately $879,000 of annualized home care revenue per direct field sales employee, slightly exceeding our target productivity range of between $750,000 and $850,000. Our institutional sales also performed well, with first quarter revenue up 49.2% year-over-year. We believe the sales restructuring, new sales leadership appointments, enhanced sales training programs and targeting approaches we initiated in the prior fiscal year, combined with our focus on cost containment, contributed to improved financial results for what is typically a seasonally light first quarter for Electromed...We are very pleased with the start to our fiscal year and believe we are well positioned to further penetrate the large and growing bronchiectasis market with our SmartVest Airway Clearance device, which makes life's important moments possible, one breath at a time."
Electromed was founded in 1992 and is headquartered in New Prague, Minn. The company manufactures, markets and sells products that provide airway clearance therapy, including the SmartVest Airway Clearance System, to patients with compromised pulmonary function. The firm's products apply High Frequency Chest Wall Oscillation (HFCWO) therapy in pulmonary care for all aged patients. Electromed's products include the SmartVest Airway Clearance System (SmartVest System), the SmartVest SQL System and others. Typically, SmartVest users perform two 30-minute treatments each day, once when they wake up and again before bedtime.
The firm claims the SmartVest reduces hospitalizations, emergency department visits, and the need for antibiotics and that the SmartVest Connect feature provides wireless connectivity to stay in contact with the patient's healthcare team and manage progress. The company markets the Single Patient Use (SPU) SmartVest and SmartVest Wrap to healthcare providers working in intensive care units. In addition, it sells its products to the home healthcare market for patients with chronic lung issues, including bronchiectasis, cystic fibrosis and neuromuscular disease.
Electromed started off today with a market capitalization of about $60 million with approximately 8.45 million shares outstanding. ELMD shares opened higher today at $8.00 (+$0.90, +12.68%) over yesterday's closing price of $7.10. ELMD shares reached a new 52-week intraday high price earlier this morning. Since the open, the stock has traded between $8.00 to $9.50 per share and is presently trading at $9.10 (+2.00, +28.17%).[NLINSERT]
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