Sonoma Pharmaceuticals Reports Fiscal Year and Fourth Quarter 2018 Financial Results

World News: . []

PETALUMA, Calif., June 13, 2018 (GLOBE NEWSWIRE) --  Sonoma Pharmaceuticals, Inc. (Nasdaq:SNOA), a specialty pharmaceutical company that develops and markets unique and effective solutions for the treatment of dermatological conditions and advanced tissue care, today announced financial results for the fiscal year 2018 and fourth quarter ended March 31, 2018.

Total revenues of $16.7 million for fiscal year 2018 increased by $3.8 million, or 30%, as compared to $12.8 million for fiscal year 2017. Product revenue of $15.7 million for fiscal year 2018, increased $3.7 million, or 31%, compared to the same period last year. This increase in product revenue was driven by strong growth in the United States, up $1.8 million, or 27%, and by higher international sales, up $1.9 million, or 36%.

Total revenue of $3.7 million for the fourth quarter ended March 31, 2018, was down slightly when compared to $4.0 million for the same period last year. Product revenues of $3.3 million for the fourth quarter ended March 31, 2018, were down 14%, or $530,000, when compared to the same period last year, largely as the result of lower sales in the United States and rest of world, partly offset by increases in Europe and Latin America.

“We are pleased to report strong year-over-year revenue growth for all our product categories. During the last 12 months, we continued to expand our business with a new set of  FDA approvals for our dermatology and eye care product lines along with additional market approvals and partnerships for our products internationally,”  said Jim Schutz, Sonoma Pharmceuticals CEO.  “The fourth quarter dermatology market was challenging for us as we experienced a decline in product revenues due to the impact of health insurance deductible resets at the beginning of the calendar year and the impact of increased product rebates.  To manage an ever-changing health insurance reimbursement marketplace, we are taking steps to reduce the impact on our revenue growth by working with a home delivery pharmacy program and advancing relationships with managed care organizations.  In addition, as announced last week, we’re excited to be partnering in Brazil with NC Group/ U.SK, Brazil’s largest pharmaceutical company.”

Product revenue in Latin America for the quarter ended March 31, 2018, was $912,000, up 9% from the same period last year. This amount reflects the sale of products to Invekra following the completion of Sonoma’s asset sale to Invekra in October 2016. Sonoma will continue to supply products to Invekra until Invekra’s manufacturing facility is operational.

Product revenue in Europe and the rest of the world of $995,000, for the three months ended March 31, 2018,  decreased by $131,000, or 12%, as compared to $1.1 million for the three months ended March 31, 2017. This decrease was the result of lower sales in China and the Middle East, partly offset by higher sales in Europe, Singapore, Hong Kong and India.

Sonoma reported gross profit of $1.3 million, or 36% of total revenue, during the three months ended March 31, 2018, compared to a gross profit of $1.9 million, or 48% of total revenue in the same period in the prior year.  The decrease in gross profit, as a percentage of revenue, was primarily due to Latin America as a result of  higher sales to Invekra at a very low profit margin and the decline in the higher margin dermatology revenue in the United States.

Operating expenses minus non-cash expenses during the fourth quarter of fiscal year 2018 were $5.1 million, up $664,000, or 15%, as compared to the same period in the prior year. This increase in operating expenses was mostly due to higher sales, marketing, legal and administrative expenses in the United States, partly offset by a decline in Latin American expenses.  A key driver to the growth in operating expenses is the increase in the number of dermatology sales representatives, compared to the same period last year.

Loss from operations was $4.7 million, up $1.8 million, compared to $2.9 million for the same period last year. Operating loss less non-cash expenses (EBITDA) for the three months ended March 31, 2018, was $3.7 million, compared to $2.4 million for the same period last year.

As of March 31, 2018, Sonoma had cash and cash equivalents of $10.1 million, as compared to $8.6 million as of December 31, 2017.

A telephone replay will be available for seven days following the conclusion of the call by dialing 855-859-2056 for domestic callers, or 404-537-3406 for international callers, and entering conference code 3495907. A webcast replay will be available on the site at http://ir.sonomapharma.com/events.cfm for one year following the call.

Sonoma Pharmaceuticals™ is a trademark or registered trademark of Sonoma Pharmaceuticals, Inc. All other trademarks and service marks are the property of their respective owners.

(2) Net loss minus non-cash expenses is a non-GAAP financial measure. The Company defines net loss minus non-cash expenses as GAAP reported net loss minus depreciation and amortization, stock-based compensation, and non-cash foreign exchange transaction losses. The Company uses this measure for the purpose of modifying the net loss to reflect only those expenses to reflect direct cash transactions during the measurement period.

(3) Operating expenses minus non-cash expenses is a non-GAAP financial measure. The Company defines operating expenses minus non-cash expenses as GAAP reported operating expenses minus operating depreciation and amortization, and operating stock-based compensation. The Company uses this measure for the purpose of identifying total operating expenses involving cash transactions during the measurement period.

The following table shows the Company’s product revenues by geographic region:

In connection with the Company’s sale of its Latin America business to Invekra, product related revenues were reclassified from continuing operations to discontinued operations.  The amounts were classified in the prior periods as Latin America sales.  The amounts reclassified are as follows:

More news and information about Sonoma Pharmaceuticals, Inc.

Published By:

Globe Newswire: 21:05 GMT Wednesday 13th June 2018

Published: .

Search for other references to "sonoma" on SPi News


Previous StoryNext Story

SPi News is published by Sector Publishing Intelligence Ltd.
© Sector Publishing Intelligence Ltd 2018. [Admin Only]
 
Sector Publishing Intelligence Ltd.
Ground Floor Offices, Little Keep Gate, Barrack Road, Dorchester, Dorset DT1 1AH
Registered in England and Wales number 0751938.
 
Privacy Policy | Terms and Conditions | Contact Us
 

Advertising on SPi News: Information For Advertisers