Electromed (ELMD) Reports Q3 EPS of $0.07

Electromed (NYSE: ELMD) reported Q3 EPS of $0.07, versus $0.04 reported last year. Revenue for the quarter came in at $8.7 million versus the consensus estimate of $8.59 million.

Q3 FY 2020 Highlights

• Net revenue increased 18.0% to $8.7 million from $7.4 million for the three months ended March 31, 2019 (“Q3 FY 2019”).
• Operating margin improved to 10.4% from 6.3% in Q3 FY 2019.
• Net income rose 85.1% to $0.7 million, or $0.07 per diluted share, from $0.4 million, or $0.04 per diluted share, in Q3 FY 2019.
• Cash balance as of March 31, 2020 was $9.9 million benefiting from $0.9 million in cash flow.

Kathleen Skarvan, President and Chief Executive Officer of Electromed, commented, “During this challenging time brought on by the COVID-19 pandemic, our priority has been the safety and health of our employees. We have continued to manufacture product and implemented changes to our workplace in accordance with the guidelines from the Centers for Disease Control and Prevention. For our clinician and patient protection, we have transitioned our sales team to primarily virtual visits and are training patients virtually since COVID-19 pandemic shelter-in-place orders have prompted many clinics to close temporarily, limit their operating hours or conduct business virtually.”

Ms. Skarvan continued, “Serving our patients, particularly at this time when healthcare systems may be overwhelmed by COVID-19 patients, to improve airway clearance, enhance respiratory function and reduce hospitalizations is critically important. We applaud the entire Electromed team for their unwavering commitment that ensured seamless manufacturing and delivery of SmartVest® Airway Clearance devices that resulted in outstanding revenue growth in both our homecare and institutional sales channels for the quarter. Operating margin improved by more than 400 basis points compared to the prior year period, notwithstanding increases in certain SG&A costs and more than doubling of R&D investment, reflecting our ongoing focus on cost containment.”

“We continue to modify our processes and practices in an effort to mitigate the impact of COVID-19 on our business so that we can continue to provide to our clinicians and their patients who need airway clearance therapy access to our SmartVest into the future. With our differentiated SmartVest airway clearance products, a large underpenetrated bronchiectasis market, and our strong balance sheet to support our future initiatives we believe we are positioned to continue delivering profitable growth as the nation emerges from this crisis.”

For earnings history and earnings-related data on Electromed (ELMD) click here.

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