Avinger Inc (NASDAQ:AVGR)
Avinger Inc (NASDAQ:AVGR) has announced its financial results for the three months ended March 31, 2017. Avinger Inc is nano-cap biotechnology firm that develops innovative treatments for peripheral artery disease.
Avinger Inc (NASDAQ:AVGR) announced some cost-cutting changes to its organizational structure resulting in a 48% reduction of the company’s current costs. During the quarter, the company signed an additional five Lumivascular™ accounts bringing the platform to 161 accounts. The company also reported positive data from its two-year clinical VISION study for its Lumivascular technology.
In a statement, president and CEO of Avinger Inc (NASDAQ:AVGR), Jeff Soinski, said the company has responded positively to the recent restructuring adding that they are making remarkable progress in the company’s strategic programs.
Avinger Inc (NASDAQ:AVGR) reported $3.5 million in total sales during the quarter. This represents a 23% decrease from the same period the previous financial year and 25% drop from what the company reported in the last quarter. The company reported $2.9 million in revenue from its disposable devices during the first quarter. This represents a 12% decrease from Q12016 and 22% from Q42016. The company’s Lightbox imaging consoles generated $0.6 million in revenue which represent a 50% drop from what was reported in Q12016 and 40% drop from what was reported in Q42016.
During the quarter, gross margin stood at 17% a drop from 26% that was reported in Q12016 and from 21% that was reported in Q42016. The drop in gross margin is as a result of $2.1 million worth of charge for extra, scrapped and obsolete inventories. Without these one-time expenses, the company would have reported a gross margin of around 44%.
Avinger Inc (NASDAQ:AVGR) reported $13.2 million in operating expenses during the first quarter of 2016. This is compared to the $16.2 million that was reported during the same period of the previous financial year. The drop was a result of increased sales and marketing expenses that were incurred in 2016 due to the company’s move to expand its commercial organization plus the launch of Pantheris.
Avinger Inc (NASDAQ:AVGR) reported $13.8 million in loss from its operations in Q12017 compared to $15 million that was reported in Q12016. Net loss stood at (-$15.3) million or (-$0.64) per share in Q12017 compared to (-$16.2) million or (-$1.28) per share reported in Q12016. The drop is as a result of the issuance of 9.9 million shares in a public offering.
Avinger Inc (NASDAQ:AVGR) gained 20.27% in the previous trading session to close at $0.445 on a volume of 2.82 million shares.
I have no positions in any of the stocks mentioned, and have no plans to initiate any positions within the next 72 hours. All information, including any data, is provided without any guarantees of accuracy.
About the author: Steve Clark is a 23-year Wall St professional with stints in M&A, risk management, and algorithm trading.