Bovie Medical Corporation (NYSEMKT: BVX) released 2Q2016 results that showed earnings and revenue improved from the same period last year. The management also made certain announcements that investors can use to get a clue of what could be lying ahead for the company.
2Q2016 at a glance
Bovie is still losing money, but its losses appear to be narrowing. The company posted EPS loss of $0.02 in the latest quarter compared to EPS loss of $0.06 in the year-ago quarter.
The bottom-line improvement was supported by an increase in sales and operational efficiency. The company reported a 27.8% YoY increase in revenue to $9.3 million. Bovie credited the topline improvement to higher sales of its J-Plasma products and a high proportion of sales coming from its OEM division.
Bovie said that gross margin in the latest quarter rose to 50.6% from 43.2% in the year-ago quarter.
Continued drive to internal efficiency saw Bovie’s operating expenses decline to 56% of sales in the latest quarter compared to 64.4% of sales in the same period last year.
Liquidity position – Bovie Medical Corporation (NYSEMKT: BVX)
Bovie Medical Corporation (NYSEMKT: BVX) finished the latest quarter with cash and equivalents totaling $9.3 million, which declined slightly from $9.5 million in the prior quarter.
What’s the management saying?
If you listen to the management of Bovie Medical Corporation (NYSEMKT: BVX), the future of the company should be bright. CEO Robert L. Gershon said that his team continued to execute well in 2Q, leading to the double-digit topline growth. But the quarter was also characterized by strong demand across Bovie’s three product categories and that gives the management confidence that continued strong execution should yield more gains.
One major highlight of 2Q was that sales of J-Plasma in the quarter more than doubled compared to 1Q and increased more than four times compared to the same quarter last year. Gershon said sales figures of J-Plasma point to the early success of the initiatives his management team has implemented to drive growth. Those initiatives include strategic channel partnerships aimed at increasing the adoption of J-Plasma.
But eyes will be on the 3Q report to see if Medical Corporation (NYSEMKT: BVX)’s channel partnerships and other growth initiatives can pay off over the long term.