ELMSFORD, N.Y. - NanoVibronix, Inc. (NASDAQ: NAOV), a medical device company specializing in non-invasive Surface Acoustic Wave (SAW) therapy devices, announced its fourth-quarter earnings with a record revenue of approximately $1.2 million for the quarter ending December 31, 2023. Despite this revenue increase, the company reported an operational loss of approximately $702,000 for the same period.
The surge in sales was attributed to the increased adoption of the company's products within the Veterans Health System and workers' compensation plans. NanoVibronix also raised approximately $4.2 million in net proceeds from securities sales during the third quarter of 2023, which helped improve short-term liquidity. As of December 31, 2023, the company reported having $3.3 million in cash and $2.7 million in inventory.
Domestically, NanoVibronix has seen progress in sales channels and product adoption, particularly with the Veterans Affairs (VA) facilities and workers' compensation business. The company is also in the process of securing a General Services Administration (GSA) grant to accelerate product uptake within VA facilities.
Internationally, the company has made strides in Australia and New Zealand, with full reimbursement for its UroShield product under consideration. In the United Kingdom, sales have increased following a contract with the National Health Services (NHS) supply chain and reimbursement through the NHS Prescription Services.
NanoVibronix's efforts to obtain full approval for its PainShield product from the Centers for Medicare & Medicaid Services (CMS) have faced challenges, with the latest application not approved due to a lack of "life-cycle" testing. However, the company continues to pursue approval and is engaged in a study with the University of Michigan to support an FDA application for UroShield.
Looking ahead, NanoVibronix aims to expand distribution, increase manufacturing capacity, and finalize private label partnerships, among other milestones. The company is optimistic about its growth prospects for 2024.
This news article is based on a press release statement from NanoVibronix, Inc.
InvestingPro Insights
In the wake of NanoVibronix's recent earnings announcement, the InvestingPro platform provides additional context to the company's financial health and performance. According to InvestingPro Data, NanoVibronix holds a market capitalization of approximately $1.74 million as of the last twelve months leading up to Q3 2023. Despite a noteworthy quarterly revenue growth of 372.16% in Q3 2023, the company's year-over-year revenue growth presents a different picture, with a decline of 38.37%. The company's gross profit margin remains strong at 49.8%, indicating a healthy difference between the cost of goods sold and the sales revenue.
Two InvestingPro Tips that stand out for NanoVibronix are the company's ability to hold more cash than debt, which suggests a solid balance sheet, and the fact that liquid assets exceed short-term obligations, indicating short-term financial stability. These factors may reassure investors about the company's ability to manage its immediate financial commitments. However, it's important to note that NanoVibronix is not profitable over the last twelve months and has been quickly burning through cash, which could be a cause for concern regarding long-term sustainability.
The stock's performance has been underwhelming, with a 1-year price total return of -73.02%, reflecting a significant drop in investor confidence. The company does not pay a dividend, which might be a consideration for income-focused investors. With an InvestingPro Fair Value estimate of $1.35, there could be potential upside from the previous close price of $0.88, but this should be weighed against the company's broader financial challenges.
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