KORU Medical Systems Inc (KRMD) Reports Q3 2023 Financial Results and Updates Full Year Outlook
Q3 2023 net revenue decreased by 9.8% year-over-year to $7.0 million.
Gross margin improved to 62.0%, reflecting increased manufacturing efficiencies.
Full year 2023 net revenue guidance revised to $28.0 to $28.5 million, with reaffirmed gross margin guidance.
Company ends the quarter with a strong cash position of $10.8 million.
On November 8, 2023, KORU Medical Systems Inc (NASDAQ:KRMD) released its financial results for the third quarter ended September 30, 2023, alongside updates to its full year 2023 outlook. The company, a leader in the development and commercialization of specialty infusion solutions, experienced a 10% decline in net revenue compared to the previous year, totaling $7.0 million for the quarter. This decrease was primarily attributed to a significant drop in Novel Therapies net revenue and a slight decline in Domestic Core net revenue.
Financial Performance Overview
The company's Novel Therapies net revenue suffered a 78.7% decrease, largely due to a substantial clinical trial order in the prior year and the timing of collaborations. Domestic Core net revenue saw a 2.1% decline, partly due to a prior year backorder clearance. Despite these challenges, KORU Medical improved its gross margin to 62.0%, a notable increase from the previous year, driven by enhanced manufacturing efficiencies.
Operational Highlights and Strategic Focus
President and CEO Linda Tharby commented on the quarter's performance, stating,
Our third quarter revenues were impacted by our Novel Therapies business due to the timing of collaborations and by our Domestic Core business, which saw lower than anticipated growth in the underlying market. We progressed several initiatives in the quarter aimed at growing our top-line, including expanding our Novel Therapies collaborations, outperforming the U.S. subcutaneous immunoglobulin market, advancing our geographic expansion efforts, and gaining a new 510(k) clearance for a prefilled syringe indication."
Tharby also emphasized the company's strategic operational expense discipline and confidence in their plan to capitalize on upcoming catalysts and market expansion.
Revised Full Year 2023 Outlook
Reflecting slower anticipated growth in the U.S. subcutaneous immunoglobulin market and the timing of Novel Therapies collaboration wins, KORU Medical has revised its full year 2023 net revenue guidance to $28.0 to $28.5 million, down from the previous forecast of $31.0 to $32.5 million. The company reaffirmed its gross margin guidance between 58%-60% for the full year, with a planned Q4 exit between 60%-62%. Additionally, the year-end cash balance guidance has been increased to greater than $10.5 million.
Balance Sheet and Cash Flow Highlights
As of September 30, 2023, KORU Medical reported cash and cash equivalents of $10.8 million. The balance sheet also reflected a net loss of $1.4 million, or $(0.03) per diluted share, for the third quarter of 2023, which included a tax benefit of $0.3 million. The company's strong cash position and disciplined expense management are expected to support its strategic initiatives moving forward.
KORU Medical's financial statements, including the balance sheets, statements of operations, and statements of cash flows, provide a detailed breakdown of the company's financial position and performance. The company will host a live conference call and webcast to discuss these results and provide a corporate update.
For more detailed information on KORU Medical Systems Inc's financial results and the full earnings release, please visit www.korumedical.com.
Explore the complete 8-K earnings release (here) from KORU Medical Systems Inc for further details.
This article first appeared on GuruFocus.
