Overview

• US medical technology firm's Q1 revenue rose 26% yr/yr on growth in core categories

• Gross margin improved to 70.1% due to pricing, product mix, and contract manufacturing

• Company completed Rendiatech acquisition, expanding kidney-function monitoring capabilities

Outlook

• Company did not provide specific financial guidance for the current quarter or full year in its press release

Result Drivers

• CORE CATEGORY EXPANSION - Co said Q1 revenue growth was driven by expansion across Pediatric, Adult Heart Failure, and Critical Care categories, as well as increased system placements and Aquadex therapy utilization

• GROSS MARGIN IMPROVEMENT - Gross margin rose due to improved pricing, product mix, and transition to contract manufacturing

• HIGHER OPERATING EXPENSES - Increase in operating expenses was driven by higher sales headcount and compensation

Company press release: ID:nGNX9KTSCj

Key Details

Metric	Beat/Miss	Actual	Consensus Estimate
Q1 Sales	Beat	$2.40 mln	$2.09 mln (1 Analyst)
Q1 EPS		-$2.09
Q1 Net Income		-$4.3 mln
Q1 Gross Profit		$1.68 mln
Q1 Income from Operations		-$4.37 mln
Q1 Pretax Profit		-$4.3 mln

Analyst Coverage

• The one available analyst rating on the shares is "hold"

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