Intersect ENT (XENT) Tops Q1 EPS by 3c, Beats on Revenues
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Intersect ENT (NASDAQ: XENT) reported Q1 EPS of ($0.21), $0.03 better than the analyst estimate of ($0.24). Revenue for the quarter came in at $24.7 million versus the consensus estimate of $23.64 million.
First Quarter Financial Results
Total revenue grew to $24.7 million for the first quarter 2018 compared to $20.5 million for the same period of 2017, an increase of 21%. The increase in revenue was attributable primarily to growth in adoption of the company’s PROPEL® family of steroid releasing implants.
Reflecting a one-time charge associated with the initial production of SINUVA, gross profit for the first quarter 2018 was $19.2 million and gross margin was 78%. This one-time charge reduced gross margin by 4%, from 82% to 78%, and was related to the transition of SINUVA production from development to commercial scale. These results compare with gross profit of $17.6 million and gross margin of 86% in the first quarter 2017. The decrease in gross margin was also attributable to increased overhead and inefficiencies associated with the addition of SINUVA and PROPEL® Contour manufacturing and to a benefit in the first quarter 2017 from the sale of PROPEL Contour product that was produced prior to FDA approval and therefore expensed in the fourth quarter 2016.
Operating expenses for the first quarter 2018 were $25.8 million compared to $24.5 million in the same period of 2017, an increase of 5%. R&D expenses increased to $4.3 million from $4.2 million. SG&A expenses increased to $21.5 million from $20.3 million, primarily driven by an increase in headcount and related expenses.
Outlook
The company continues to forecast full year 2018 revenue of $111 to $116 million, including an estimated 8% contribution from SINUVA product sales, and forecasts second quarter 2018 revenue of $27.7 to $28.2 million.
GUIDANCE:
Intersect ENT sees FY2018 revenue of $111-116 million.
For earnings history and earnings-related data on Intersect ENT (XENT) click here.
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