Tactile Systems Technology, Inc. (TCMD) Tops Q2 EPS by 9c, Revenues Beat; Boosts FY18 Revenue Outlook

Tactile Systems Technology, Inc. (NASDAQ: TCMD) reported Q2 EPS of $0.13, $0.09 better than the analyst estimate of $0.04. Revenue for the quarter came in at $34.1 million versus the consensus estimate of $31.59 million.

Second Quarter 2018 Summary:

• Total revenue increased 30% year-over-year, to $34.1 million, compared to $26.3 million in second quarter 2017.
• Flexitouch revenue increased 30% year-over-year, to $31.4 million, compared to $24.2 million in second quarter 2017.
• Operating income of $1.3 million, compared to operating income of $0.7 million in second quarter 2017.
• Net income of $2.6 million, compared to net income of $3.8 million in second quarter 2017.
• Adjusted EBITDA of $4.3 million compared to Adjusted EBITDA of $2.3 million in second quarter 2017.

“Our second quarter and first half results reflect strong operating and financial performance this year,” said Gerald R. Mattys, Chief Executive Officer of Tactile Medical. “Flexitouch system sales continue to drive our revenue growth – increasing 34% over the first six months of 2018 – fueled by the powerful combination of a focused selling strategy, targeting high-volume accounts and the Veterans Administration hospital system, strong sales team execution and our expansion of in-network coverage with commercial insurers. Our second quarter revenue growth also benefitted from the full launch of our new Flexitouch Plus system, which is progressing well and continues to garner positive feedback from clinicians and patients. In addition to our robust revenue growth in the second quarter and first half of 2018, we also achieved improved operating income.”

“As we announced in a separate press release this evening, the Company has appointed Brent Moen, a tenured financial executive with over 20 years of managerial experience, to lead our continued development as incoming Chief Financial Officer, effective September 2, 2018. Mr. Moen will succeed our current CFO, Lynn Blake, who will continue to provide support and assist with the transition in a consulting role until March 2019.”

Mr. Mattys continued, “Looking ahead, we are increasing our annual revenue guidance based on our first half results and we expect to leverage our strong revenue growth into improved profitability this year. In addition to remaining focused on these objectives, we will continue to enhance the quality of life for our patient customers by providing them with clinically proven, at-home treatments for their chronic conditions.”

GUIDANCE:

Tactile Systems Technology, Inc. sees FY2018 revenue of $134-135 million, versus the consensus of $134.49 million.

For earnings history and earnings-related data on Tactile Systems Technology, Inc. (TCMD) click here.

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