Ekso Bionics Holdings, Inc. (NASDAQ:EKSO)
Ekso Bionics Holdings, Inc. (NASDAQ:EKSO) has embarked on a cost-cutting drive after reporting a wider than expected first-quarter net loss of (-$8.3) million. The exoskeleton developer plans to streamline its operations and cut its workforce by about 25% in a bid to reduce cash burn.
Ekso Bionics Holdings, Inc. (NASDAQ:EKSO) expects the cuts to result in a 25% reduction in monthly operating expenses. Cash severance and related expenses as a result of cutbacks could rise to $1 million. The cost-cutting drive will not interfere with the company’s research and development activities geared towards advancing proprietary solutions.
The restructuring comes at a time when Ekso Bionics Holdings, Inc. (NASDAQ:EKSO) is looking for ways to fuel sales on its lead product Ekso GT – among other exoskeleton offerings. In a bid to push for sales in industrial markets, the company is currently working with partners to increase awareness.
“We remain on track with our strategic priority of establishing our unique products as the industry standard. We believe that the measures announced today will enhance shareholder value as we more efficiently deploy cash and solidify our leadership in the emerging exoskeleton industry,” said CEO Thomas Looby
A decline in revenues from $8.5 million as of last year to $1.4 million in Q1 2017 is a major point of concern. However, the chief executive officer remains confident that positive feedback will lead to greater success as they ramp up commercialization efforts.
Ekso Bionics Holdings, Inc. (NASDAQ:EKSO) has already teamed up with four leading rehabilitation centers as part of an effort that seeks to expand the current target market. The four centers that the company is collaborating with are Barrow Neurological Institute, Good Shepherd Rehabilitation Network, Marianjoy Rehabilitation Hospital, part of Northwestern Medicine and Villa Beretta” Centro di Riabilitazione, Costa Masnaga (LC), Italy
The collaborations should advance the use of the company’s innovative exoskeleton in mobility-impaired patients. Ekso Bionics Holdings, Inc. (NASDAQ:EKSO) also expects the collaboration to help build clinical support on the benefits of its products. Each center will also help research and development efforts.
“We are proud to work with these visionaries who are dedicated to helping patients with recovery and to provide quantifiable insights into the strides they’re making walking with an exoskeleton,” said Mr. Looby.
Ekso Bionics Holdings, Inc. (NASDAQ:EKSO) stock was down by 9% in Friday’s trading session to end the week at $1.92 a share. In early Monday trading, EKSO shares are trading down a further 7%.
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: 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.