Bad Day for Dextera Surgical Inc (NASDAQ:DXTR)

Dextera Surgical Inc (NASDAQ:DXTR)

Dextera Surgical Inc (NASDAQ:DXTR) gapped down to open trading this morning, then struggled through the rest of the day, and ended down almost 25%. The company released no news that would account for the large move down. The NASDAQ market started lower today as well but ended down just 0.37%. Given that DXTR stock carries a -1.17 Beta, the shares clearly were more volatile than one would expect.

Dextera Surgical Inc (NASDAQ:DXTR)

About Dextera Surgical

Redwood City, CA-based Dextera Surgical Inc (NASDAQ:DXTR) is a global medical device company that develops proprietary stapling devices for minimally invasive surgical procedures. It primarily develops and commercializes MicroCutter 5/80, a cartridge-based micro cutter device used by for thoracic, pediatric, bariatric, colorectal, and general surgeons. The company also designs, manufactures, and markets automated anastomotic systems under the Cardica brand name for use by cardiac surgeons to perform coronary bypass surgery.

DXTR Stock

The medical device company has a market capitalization under $10 million. At the end of 2016, shares of Dextera Surgical Inc (NASDAQ:DXTR) bounced off the critical $1 per share level for three weeks before shooting above $2.25. A long slide in DXTR stock value then began in February of 2017 and shares broke through the psychologically important level of $0.50 in May. Since then DXTR stock has traded in a $0.15 – $0.40 range. Then, this week, DXTR stock hit their 52-week low of $0.13. 2017 has been tough for Dextera Surgical shareholders as DXTR shares have lost over 80% since January.

The company has an uncertain future and observers of the sector believe a sale or merger may be in the best interests of the company and shareholders. Existing shareholders are on the alert for another round of dilution as the company reportedly has just $0.05 in cash per share – that is a short runway, even for a nano-cap company. However, it should be noted that the company has been able to shrink its losses each year. In 2013, the per share loss was (-$3.95). Each year since then has seen a smaller loss and, for FY2017, the loss was a smaller (-$1.72). Also benefitting shareholders is the low share price which reflects a short-sale position on the stock’s float of less than 10%. Curiously, two investment firms rate DXTR stock as a “Strong Buy” and one rates the shares a “Hold”.

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.

Don’t miss out! Stay informed on $DXTR and receive breaking news on other hot stocks by signing up for our free newsletter!

About the author: Monica has an undergraduate degree in Accounting and an MBA she earned – with Honors. She has six years of experience in the financial markets and has been an analyst for the past two years.

Dextera Surgical Inc (NASDAQ:DXTR) Stock Gives Up Gains

Dextera Surgical Inc (NASDAQ:DXTR)

Shares of Dextera Surgical Inc (NASDAQ:DXTR) stock tumbled 12.74% after the company reported a net loss of $3.1 Million for the fourth quarter ended June 30, 2017. News of the net loss comes weeks after the company initiated a temporary shipping hold on its flagship MicroCutter 5/80 Stapler and reload cartridges.

Wednesday’s sell-off plunged Dextera Surgical Inc (NASDAQ:DXTR) stock  close to its 52-week low of $0.17 a share. The company’s stock is currently trading in a tight $0.24 to $0.25 trading range inside a strong downtrend.

Dextera Stock Price Chart:

Dextera Surgical Inc (NASDAQ:DXTR)
One month stock price chart for DXTR

Dextera Q4 Earnings Report

Dextera Surgical Inc (NASDAQ:DXTR) is a medical device company that develops proprietary stapling devices for minimally invasive surgical procedures. MicroCutter 5/80 is the company’s lead product used for thoracic pediatric colorectal and general surgeries. The company also develops anastomotic systems for use by cardiac surgeons.

The medical device company generated sales of $1 million in the fourth quarter compared to $0.7 million for the corresponding period last year. MicroCutter sales in the quarter stood at $359,000 down from $516,000 as of the third quarter. The company attributes the decline to a backorder for the blue reload cartridges and shipping hold at the end of the quarter.

“We have identified and addressed the cause for the premature lock out of the MicroCutter 5/80 surgical staplers announced on July 6th, and after extensive in-house testing of the modification, we resumed shipping to our customers,” said Julian Nikolchev, president, and CEO of Dextera Surgical Inc.

Dextera Surgical Inc (NASDAQ:DXTR) exited the fourth quarter with cash and cash equivalent of $6 million compared to $2.5 million as of the end of the third quarter.

Corporate Highlights

During the quarter, Dextera Surgical Inc (NASDAQ:DXTR) executed a strategic partnership with B Braun for the distribution of the MicroCutter 5/80 Stapler. Under the terms of the agreement, B Braun Surgical will distribute the stapler directly and through indirect sales representatives in Spain.

In a bid to meet growing demand for the MicroCutter 5/80, Dextera Surgical is in the process of optimizing its supply chain as it also works on increasing production capacity to 120 MicroCutter by the end of the year. There are also plans to increase the device’s indications to expand its usage into liver pancreas Kidney and spleen surgery.

Dextera Surgical Inc (NASDAQ:DXTR) has also entered into a co-development project with Intuitive Surgical for the development of a new robotic stapler based on the current MicroCutter technology

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.

Don’t miss out! Stay informed on $DXTR and receive breaking news on other hot stocks by signing up for our free newsletter!

About the author: Monica has an undergraduate degree in Accounting and an MBA she earned – with Honors. She has six years of experience in the financial markets and has been an analyst for the past two years.

Dextera Surgical Inc (NASDAQ:DXTR) Reports $1.1 Million Revenue Drop

Dextera Surgical Inc (NASDAQ:DXTR)

Dextera Surgical Inc (NASDAQ:DXTR) has announced its financial results covering fiscal third quarter plus the nine months ended March 31, 2017. The company reported a slight drop its revenue to $1.1 million from around $1.9 million reported in fiscal 2016 third quarter. In the third quarter of fiscal 2016 the company reported approximately $1.4 million from the extension of its agreement with Intuitive Surgical.

Total product sales amounted to around $1.0 million in fiscal 2017 third quarter up from the $0.5 million reported a year ago. During the period, the company reported $516,000 from sale of its MicroCutter compared to $19,000 that was reported in the fiscal 2016 third quarter. The MicroCutter was recently highlighted and discussed at the 25th edition of the European Conference on General Thoracic Surgery which was held in Innsbruck, Austria. The presentations showcased the less invasive procedural approaches which are enabled by MicroCutter. There has been growing interest in MicroCutter 5/80 as it gains in acceptance from surgeons.

During the quarter, Dextera Surgical Inc (NASDAQ:DXTR) reported $5.5 million in total operating costs, up from $4.8 million that was reported a year ago. Cost for the sale of its products amounted to $1.3 million, up from the $0.9 million that was reported in fiscal 2016 third quarter. The company further incurred $2.0 million in research and development expenses, an increase from the $1.6 million that was reported in the third quarter of fiscal 2016. General and administrative expenses dropped to$2.1 million from the $2.3 million reported a year ago.

Dextera Surgical Inc (NASDAQ:DXTR) further reported approximately (-$4.5) million or (-$0.50) per share in net quarterly loss for the third quarter of fiscal 2017. This is an increase from the (-$3.0) million or (-$0.34) per share reported in the third quarter of fiscal 2016.

At the close of the quarter, the company had approximately $2.5 million in cash, cash equivalents, and short-term investments. This is compared to $5.8 million that the company had at the close of the last financial year. Additionally, the company had 8.9 million outstanding shares or common stock and 191,474 preferred shares.

Dextera Surgical Inc (NASDAQ:DXTR) is projecting $600,000 to $700,000 in sales from MicroCutter for the quarter ending June 30, 2017. This is a downward revision from the company’s earlier projection of $700,000 to $800,000. The revision in guidance results from backorders of the blue reload cartridge. The company expects to generate $1.4 million to $1.5 million in MicroCutter product sales for the fiscal 2017.

According to Dextera Surgical Inc (NASDAQ:DXTR) president and CEO, Julian Nikolchev, the company’s MicroCutter is expected to increase in demand both in the United States and Europe.

Dextera Surgical Inc (NASDAQ:DXTR) stock reported a 8.08% gain or $0.014 to close the session at $0.186 per share and a market cap of $1.50M.

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.

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About the author: Steve Clark is a 23-year Wall St professional with stints in M&A, risk management, and algorithm trading.