Intricon Corporation (IIN) Misses Q1 EPS by 13c, Revenues Miss

Intricon Corporation (NASDAQ: IIN) reported Q1 EPS of ($0.22), $0.13 worse than the analyst estimate of ($0.09). Revenue for the quarter came in at $21.5 million versus the consensus estimate of $23.28 million.

First Quarter Financial Highlights:

• Revenue of $21.5 million
  • Revenue from largest medical customer declined 21.2% year-over-year
• Gross margin of 21.3%
• Net loss per diluted share of $0.22 versus net income of $0.08 per diluted share in the prior year period
• Enacted measures designed to ensure business continuity, reduce operating expense, and preserve cash as the ongoing COVID-19 pandemic impacts revenue

Recent Operational Highlights:

• Acquired Emerald Medical Services Pte. Ltd., a privately held provider of joint development medical device manufacturing services for complex catheter applications
• Completed a global net workforce reduction of 25 positions resulting in an annual, net cost savings of approximately $1.5 million
• Accelerated the Hearing Help Express restructuring to focus on partnerships in the hearing health market, resulting in an approximately $2.0 million reduction in consumer advertising expense in 2020 as compared to 2019 and a workforce reduction resulting in an annual, net cost savings of approximately $900,000
• Enhanced our leadership team with two key additions with extensive organization development expertise
  • Heather Rider joined IntriCon’s board of directors in March
  • Sara Hill joined the company’s executive team as Chief Human Resource Officer

“During this period we also completed a number of actions that we believe will significantly transform our organization and best position us for long term growth by focusing on what we do best - delivering complex micro-miniature medical devices that require specialized design expertise and high production volumes. These actions included the acquisition of Emerald Medical Services, which immediately expands our medical market opportunity and diversifies our customer base. Following our decision last quarter to discontinue direct-to-consumer initiatives in the hearing health market, we accelerated a restructuring within our Hearing Help Express business to further focus resources on partnership opportunities and substantially reduce the associated losses. We also took actions to restructure other areas of our global workforce to further streamline our resources to best align with current priorities,” continued Gorder.

“I’m proud of the substantial progress the IntriCon team has made on the priorities we established for the year, including continuing to meet the volume demands of Medtronic’s diabetes business; accelerating market and customer diversification; pursuing partnerships in hearing health; and adjusting our organizational structure to address opportunities in high growth markets,” concluded Gorder.

For earnings history and earnings-related data on Intricon Corporation (IIN) click here.

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