The Company develops and commercializes diagnostic and therapeutic neurostimulation-based medical devices. The Company has three commercial products. DPNCheck® is a point-of-care diagnostic test for peripheral neuropathies including diabetic peripheral neuropathy (DPN). ADVANCE™ is a point-of-care diagnostic test primarily used for carpal tunnel syndrome. Quell® is a wearable neurostimulation device that is available over-the-counter for symptomatic relief of chronic pain.
Q4 2019 Highlights:
- DPNCheck posted Q4 2019 revenue of
$0.9 million, an increase of 51% over the prior year quarter. The improvement came in the US Medicare Advantage market, which was consistent with strong performance of this segment throughout 2019. In the full year 2019, Medicare Advantagerevenue growth was 25% over the prior year.
- The Company made important progress on its second generation DPNCheck system which is planned for commercial launch in Q4 2020. This product should position the DPNCheck business for long-term revenue growth.
- ADVANCE revenue was
$280 thousandin Q4 2019, essentially flat with $300 thousandin the prior year quarter. The Company has not been actively marketing ADVANCE for the past five years but plans to evaluate renewed R&D and marketing investment given the ongoing market demand.
- Reflecting substantial reductions in 2019 advertising spending, Quell revenue decreased to
$0.5 millionin Q4 2019 from $2.8 millionin the prior year quarter. The Company emphasized sales profitability over volume while further refining the commercial strategy.
- The Company continued to provide engineering support for Quell technology as part of its collaboration with GlaxoSmithKline.
- The Company maintained its investment in the Quell clinical development program which is intended to support ongoing Quell promotion, expand the Quell chronic pain market and identify new clinical applications for Quell technology. Several clinical program announcements are expected during 2020.
- The Q4 2019 gross margin on product sales was
$1.1 million, a 62.2% margin rate which was up 15 percentage points over the prior year quarter. The Q4 2019 net loss of $1.1 millionwas a 60% improvement over Q4 2018.
"Although we were disappointed by the overall drop in revenue from the year-ago period, we expected this outcome given our large reduction in operating expenses, attention to improved gross margins and overall focus on long term growth and profitability. We believe we made important progress against these objectives. We experienced strong demand for DPNCheck during the fourth quarter which is typically our slowest period. This momentum should carry into 2020 as new
Regarding the fourth quarter 2019, total revenues were
Regarding the full year 2019, total revenues were
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Safe Harbor Statement
The statements contained in this press release include forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, including, without limitation, statements regarding the company’s or management’s expectations regarding the business, as well as events that could have a meaningful impact on the company’s revenues and cash resources. While the company believes the forward-looking statements contained in this press release are accurate, there are a number of factors that could cause actual events or results to differ materially from those indicated by such forward-looking statements, including, without limitation, estimates of future performance, the ability to successfully develop, receive regulatory clearance, commercialize and achieve market acceptance for any products, and the final outcome of the ongoing
SVP and Chief Financial Officer
Statements of Operations
|Quarters Ended December 31,||Year Ended December 31,|
|Cost of revenues||644,560||1,980,407||7,026,899||8,707,082|
|Research and development||736,836||1,059,697||3,101,976||5,134,592|
|Sales and marketing||708,212||2,658,820||4,755,168||9,698,753|
|General and administrative||1,276,258||851,012||5,923,190||4,841,278|
|Total operating expenses||2,721,306||4,569,529||13,780,334||19,674,623|
|Loss from operations||(1,658,963||)||(2,821,136||)||(11,534,711||)||(12,291,567||)|
|Total other income||602,233||18,503||7,761,697||12,315,172|
|Net income (loss)||$(1,056,730||)||$(2,802,633||)||$(3,773,014||)||$23,605|
Condensed Balance Sheets
|Cash and cash equivalents||$3,126,206||$6,780,429|
|Other current assets||2,304,608||4,805,736|
|Lease Obligation, net of current portion||916,674||1,301,172|
|Total liabilities and stockholders’ equity||$6,893,686||$13,991,880|
Source: NeuroMetrix, Inc.