Akers Biosciences Inc (NASDAQ:AKER)
Akers Biosciences Inc (NASDAQ:AKER) has announced its financial results for the period ended March 31, 2017. The company specializes in the production of rapid health information technologies. The company reported a 10% drop in revenue to $667,250 in the period ended March, 31, 2017 compared to 738,023 that was reported in the three months ended March 31, 2016.
There was a 12% drop in revenue from the company’s PIFA Heparin/PF4 Rapid Assay products in Q1 of 2017 over the same duration in 2016. The drop was caused by the revision of contract terms with the product distributors which led to a revenue decrease of almost $54,000. This drop was necessary to allow the company to implement the value expression in its pricing strategy. The effects of these adjustments are only expected to affect results for Q1 of 2017.
Akers Biosciences Inc (NASDAQ:AKER) reported around $28,000 worth of PIFA revenue from its distribution partners in China for the period ended March 31, 2016. No revenue was reported in the corresponding period of 2017.
There was drop in Akers Biosciences Inc (NASDAQ:AKER)’s gross margin to 61% in Q1 of 2017 compared to 73% that was reported in Q1 of 2016. The company reported $21,742 in manufacturing supplies costs in Q1 of 2017 compared to $7,591 reported in Q1 of 2016. Costs from services offered by sub-contractors amounted to $113,761 in Q1 of 2017 compared to $8,092 that was reported in Q1 of 2016. Most of the cost increase resulted from the introduction of new products, hence the increase is not expected to recur in future financial reporting. The company has predicted a gross margin of between 65% and 68% in the near-term.
Costs from the company’s sales activities amounted to $258,721 for the period ended March 31, 2017 compared to $200,028 that was reported in the corresponding period in 2016. Direct costs from sales activities amounted to 16% of the company’s product revenue while costs from other sales activities amounted to 23% of the Q1 2017 revenue.
Akers Biosciences Inc (NASDAQ:AKER) reported $790,529 in general and administrative expenses in Q1 2017 representing a 14% drop compared to $923,560 reported in the corresponding period of 2016. Expenses from sales and marketing activities amounted to $588,934 in Q1 of 2017 representing a 19% drop from the $725,324 that was reported in Q1 of 2016. Akers Biosciences Inc (NASDAQ:AKER) reported $348,442 in research and development expenses in Q1 of 2017 compared to $363,292 that was reported in Q1 of 2016.
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About the author: Monica Gray has an undergraduate degree in Accounting and an MBA – earned with Honors. She has six years of experience in the financial markets and has been a securities analyst for the past two years.