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 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.
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.
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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.