Electromed, Inc. (NYSE:ELMD)

Electromed, Inc. (NYSEAMEX:ELMD) a leader in innovative airway clearance technologies, announced Q2 2024 results:

• Sales of $13.7 million vs $11.7 million in the prior year and ahead of analyst estimates of $13.3 million

• EPS of $0.19 vs $0.11 in the prior year and ahead analyst estimates of $0.10

“I am thrilled to announce another record revenue quarter for Electromed,” said Jim Cunniff, President and Chief Executive Officer. “The Company's consistent growth strategy focusing on developing best-in-class products, exemplary customer service and disciplined commercial expansion is generating positive results. We see these investments paying off through continued revenue growth and increased profitability. The Electromed team and I remain focused on serving our customers and promoting our state-of-the-art airway clearance technology, Smartvest Clearway, to drive continued market penetration. We are moving from strength to strength, and we look forward to continued success in the second half of fiscal year 2024.”

Electromed, Inc. (NYSEAMEX:ELMD) ($7.10; $59.9M market cap), a leader in innovative airway clearance technologies, announced Q1 2020 results:

• Sales of $8.3 million vs $7.3 million in the prior year and ahead of analyst estimates of $7.5 million

• EPS of $0.12 vs $0.02 in the prior year and crushed analyst estimates of $0.01

“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.

Adding Electromed, Inc. (AMEX:ELMD) ($6.26) to our Mock Takeover Candidate screen due to an investment by Red Oak Partners and  insider buying tends.  We are impressed with their innovation and believe their addressable market is much larger than currently targeted.

NEW PRAGUE, Minn.--(BUSINESS WIRE)--Electromed, Inc. (NYSE MKT: ELMD), a global medical device company, today announced it has received notification from the U.S. Food and Drug Administration that its next generation SmartVest^� Airway Clearance System, the model SQL has been cleared to market.

SQL solidifies Electromed�s innovation leadership by offering a device that is smaller, quieter, and lighter than our previous versions,� said Kathleen Skarvan, Chief Executive Officer. �We designed the SQL to stand apart from the competition with features that our patients and clinicians were asking for. They talked, and we listened.� In addition to being significantly smaller, quieter, and lighter than our previous versions, some of the features include enhanced ramping, an enhanced pause feature and more user-friendly graphics.

The model SQL is an electrically powered precursor device designed to deliver high frequency chest wall oscillation (HFCWO) to promote airway clearance, improve bronchial drainage and enhance mucus transport under the order of a physician�s prescription. It is prescribed to patients with a wide range of pulmonary-related health conditions including bronchiectasis, chronic obstructive pulmonary disease (COPD), cystic fibrosis, muscular dystrophy, and cerebral palsy. HFCWO has been demonstrated to reduce lung infections and reduce health care costs associated with recurrent pneumonias, antibiotic use, and hospital stays. In addition to the innovative SQL generator, the system boasts a lightweight soft-fabric garment with several patented features.

�We believe we have the most comfortable and easy-to-use system among leading HFCWO devices, which leads to therapy adherence and better patient outcomes, Skarvan added.

Electromed anticipates that the model SQL will be available to the U.S. market within the next 60 days.

First Quarter 2014 Financial Results

• Net revenues in the first quarter of fiscal 2014 were approximately $3.4 million, a 15% decrease compared to the same period of fiscal 2013.
• The Company reported a net loss of approximately $335,000, or $0.04 cents per basic and diluted share, for the first quarter of fiscal 2014, compared to a net loss of approximately $71,000, or one cent per basic and diluted share, for the same period last year.

The decline in total revenues in the first quarter of fiscal 2014 was attributable to lower prices received from health care insurers on the Company�s products due to an increased focus on controlling health care costs as well as more rigorous scrutiny by insurers of reimbursement requests for a wide range of medical devices and other health care products. The decline in homecare revenue of approximately $0.7 million in the first quarter was partially offset by an increase in international and government/institutional revenue of $100,000 compared to the same period of fiscal 2013.

The larger net loss in the first quarter was primarily due to the lower reported revenue. Gross margins in the first quarter declined slightly to 69% as compared to the same period in the prior year. Operating expenses were essentially flat but rose as a percentage of sales due to the lower revenues in the first quarter of fiscal 2014 as compared to the first quarter of the prior year. The Company had positive operating cash flow of approximately $740,000 and increased its cash by approximately $500,000 during the quarter.

Commenting on the Company�s first quarter results, Electromed's Chief Executive Officer, Kathleen Skarvan said, "The pressure on our revenue persisted in the first quarter of fiscal 2014. We believe uncertainty surrounding health care reform and the Affordable Care Act and ongoing efforts by health insurers to control costs reduced the adoption of therapy devices like ours during the quarter. However, I am pleased with our team's ability to manage expenses and generate significant cash flow via strong collections during a challenging period. We have developed and are committed to executing on our strategies to increase revenue from the homecare market while continuing to support growth in institutional and international markets."