TruScreen expects to reach profitability in 2019, reports net loss for FY18
By Rebecca Howard
June 14 (BusinessDesk) - Cervical cancer technology company TruScreen expects to reach profitability in 2018 after reporting a wider net loss for the year ended March 31 on lower than expected sales and higher costs.
The net loss was $4.47 million versus a loss of $3.54 million in the prior year, it said in preliminary results released to the stock exchange. Sales rose to $804,062 versus $585,388 a year earlier. While sales were 37 percent higher, it said total sales revenue for the year was "below expectations" after the commercial performance was hampered in the first half due to ongoing product improvements and validation, and delays in gaining China Food and Drug Administration approval for the TruScreen device in China.
However, " it is pleasing to now be seeing a positive sales trajectory."
The stock jumped 25 percent to 17.5 cents and has shed 20 percent so far this year. Operating expenses jumped 30 percent to $6.35 million versus $4.94 million in the period year. Its net operating cash outflow was $3.8 million versus $2.6 million in the prior year. "This is expected to significantly improve as sales increase and TruScreen expects to reach profitability by the end of FY19," it said.
The company had cash and cash equivalents of $1.2 million as at March 31 and "as it has done previously if required, TruScreen will seek shareholder support for its growth strategy as it works towards profitability," it said.
Looking ahead, it said sales have continued to grow in the first two months of the year. The vast majority of these sales are to China, where devices are being stockpiled in preparation to being rolled out in a major program in the next few months, it said.
Total sales for the first two months of the year are approximately 50 percent of full-year sales for the year that ended March 31, it said.