Ekso Bionics Holdings, Inc. (NASDAQ:EKSO) To Cut Costs After Q1 Net Loss

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.

Cost-Cutting Drive

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.

Strategic Collaborations

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.

Ekso Bionics Holdings, Inc. (NASDAQ:EKSO) Impresses on Earnings

Ekso Bionics Holdings, Inc. (NASDAQ:EKSO)

Ekso Bionics Holdings, Inc. (NASDAQ:EKSO) beat their Q4 2016 analyst forecast both on an EPS and revenue basis. Q4 EPS was a loss of $0.35 – beating estimates by $0.05. Q4 revenues were $2.6 million – beating estimates by $0.86 million. For 2016, device and related revenue was $13.3 million. Gross profit for the year ended December 31, 2016 was $2.9 million, of which $2.6 million was attributable to device and related revenue.

Thomas Looby, president and chief executive officer at Ekso Bionics Holdings, Inc. (NASDAQ:EKSO). “With the broadest label in the US for exoskeletons, a sales and marketing team that is highly motivated and already making major inroads, a clinical study to provide evidence, and a technology that is changing lives, we have certainly had a productive 2016 and I am energized to lead this company into 2017 and beyond.”

Ekso Bionics, Inc. (NASDAQ:EKSO) designs, engineers, and develops robotic exoskeletons. In 2016, Ekso Bionics received the first FDA clearance exoskeleton for use with stroke and spinal cord injury levels to C7. Ekso Bionics is headquartered in Northern California.

Ekso Bionics went public in 2016. Their EPS history is a loss in 2014 of $30.2 which they narrowed in 2015 to an EPS loss of $1.66. Sales have an upward trend. In 2014 sales came in at $5.3 million but were $8.7 million in 2015. All four firms that follow Ekso Bionics, Inc. (NASDAQ:EKSO) rate EKSO shares as a “Strong Buy” with a consensus price target of $12.50 – about four times current trading levels.

3/7/2017
Ticker Symbol EKSO
Last Price a/o 5:40 PM EST  $                      3.40
Average Volume                    110,000
Market Cap (mlns)  $                    70.45
Sales (mlns) $13.60
Shares Outstanding (mlns) 21.81
Share Float (mlns) 18.73
Shortable Yes
Optionable Yes
Inside Ownership 0.10%
Short Float 3.21%
Short Interest Ratio 5.51
Quarterly Return -24.36%
YTD Return -18.84%
Year Return 0.00%

I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 96 hours. All information, or data, is provided with no 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.