Electromed, Inc. Announces Fiscal 2017 Fourth Quarter Financial Results
Published: Sep 06, 2017
NEW PRAGUE, Minn.--(BUSINESS WIRE)--Electromed, Inc. (“Electromed” or the “Company”) (NYSE MKT: ELMD), a leader in innovative airway clearance technologies, today announced financial results for the three months ended June 30, 2017 (“Q4 FY 2017”).
Q4 FY 2017 Highlights
- Net revenue increased 27.8% to $7.3 million from $5.7 million during the three months ended June 30, 2016 (“Q4 FY 2016”). Net revenue for Q4 FY 2017 included a favorable impact of $703,000 from a one-time item, which is discussed further in the “Q4 FY 2017 Review” section.
- Gross profit rose 33.6% to $6.0 million from $4.5 million in Q4 FY 2016.
- Operating income grew 181.0% to $1.5 million from $539,000 in Q4 FY 2016.
- Net income expanded 180.7% to $946,000, or $0.11 per diluted share, from $337,000, or $0.04 per diluted share, in Q4 FY 2016.
- Field sales employees grew to 40 at the end of Q4 FY 2017 from 30 at the end of Q4 FY 2016.
- In June 2017, the Company launched SmartVest Connect™ wireless technology for SmartVest®SQL® as planned, with favorable feedback from pediatric and cystic fibrosis users and clinicians.
Kathleen Skarvan, President and Chief Executive Officer of Electromed, commented, “We capped off fiscal 2017 with strong fourth quarter financial results, including robust top- and bottom-line growth driven by a 29.5% year-over-year increase in home care revenue. Our strengthening home care revenue directly reflects the progress we are making in our organic growth strategy. This quarter, we continued to invest in our sales and reimbursement teams, expanded our covered lives, increased sales team productivity with a focus on adult pulmonology, promulgated evidence-based studies that differentiate SmartVest®, and advanced innovation in airway clearance therapy. We are particularly pleased with the fourth quarter launch of SmartVest Connect™, our wireless connectivity and patient monitoring solution, which users have lauded for its ease of use and intuitive design. We have rolled out SmartVest Connect to patients in the pediatric and cystic fibrosis categories and plan to make it available to patients at select adult pulmonology clinics later in Fiscal 2018.”
Ms. Skarvan continued, “Reflecting our increasingly optimistic view of the significant, underpenetrated bronchiectasis market opportunity in front of us, we intend to step up our level of investment in the business in fiscal 2018. A higher level of investment should contribute to increased SG&A expense beginning in the first quarter of fiscal 2018 and drive enhanced revenue growth as we proceed through the back half of the year. We will be expanding our sales force, building on our preeminent reimbursement platform and customer care group, investing in innovative device features and services, and launching additional marketing initiatives to increase physician and patient awareness to drive a higher number of quality referrals. While our management team and Board have agreed to emphasize revenue growth activities in the near term, we remain committed to profitability. We believe this strategy will enhance shareholder value as we strive to improve quality of life for a greater number of patients with compromised pulmonary function and reduce overall healthcare utilization through SmartVest® airway clearance therapy.”