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NeuroMetrix dips on Q1 losses

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NeuroMetrixNeuroMetrix (NSDQ:NURO) shares fell today on first-quarter losses that reflected the impact of COVID-19 on its business.

The Woburn, Mass.-based pain-treating transcutaneous electrical nerve stimulation (TENS) device developer posted losses of -$657,371 on sales of $2.2 million for the three months ended March 31, 2020, seeing its bottom line slide into the red from profits of more than $2 million in the same quarter last year after a sales decline of 30.4%.

NeuroMetrix cited COVID-19 for having an adverse impact on its revenues following a drop-off in business activity during the month of March because of the pandemic.

“Despite the commercial slow down attributable to COVID-19 in March, we were encouraged by Q1 sales activity coupled with a 70%+ gross margin and an improving operating margin,” NeuroMetrix president & CEO Dr. Shai Gozani said in a news release. “While there is more work to be done to achieve operating profitability, we believe these financial results demonstrate the potential of our core businesses.
“We are uncertain when the sales drop-off we saw in March will abate and start to return to normal. However, we hope that revenue lost in Q1 and Q2 will be recovered in the second half of the year. In the meantime, we are focused on employee safety, serving our customers and continuing our R&D programs.”
NeuroMetrix did not offer financial guidance for 2020 but noted that it ended the first quarter with a total of $2.8 million in cash.

NURO shares were down -5.2% at $2.90 per share in mid-afternoon trading today. MassDevice’s MedTech 100 Index — which includes stocks of the world’s largest medical device companies — was up 1.2%.

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About Sean Whooley

Sean Whooley is an associate editor who mainly produces work for MassDevice, Medical Design & Outsourcing and Drug Delivery Business News. He received a bachelor's degree in multiplatform journalism from the University of Maryland, College Park. You can connect with him on LinkedIn or email him at swhooley@wtwhmedia.com.

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