Vapotherm, Inc. in Exeter is expected to see siginifcant gains in revenue as demand for it product line increases. The global medical technology company, whose products are used to treat patients suffering from respiratory distress, announced certain preliminary first quarter of 2020 financial results.
“We are pleased with our performance during the first quarter and our team’s ability to support our hospital customers as they treat COVID-19 patients suffering from respiratory distress. In particular, I am proud of the effort of our operations team who significantly increased capacity in response to customer demand in both new and existing accounts. We exceeded expectations for revenue in the first quarter and grew our worldwide installed base of Precision Flow systems twice as fast as we did in the first quarter of 2019,” says Joe Army, President and CEO of Vapotherm. “Looking ahead, our focus is on managing our supply chain to sustain the current production level, and potentially increase it further. In addition, we are continuing to expand our body of clinical evidence and progressing the development of our Oxygen Assist Module which was recently granted Breakthrough Device Designation by the FDA.”
Preliminary First Quarter 2020 Financial Results
Preliminary revenue for the first quarter of 2020 is expected to be approximately $18.9 million, an increase of approximately 54% when compared with $12.3 million for the first quarter of 2019. The outperformance relative to the Company’s previously issued guidance of $13.4 to $13.9 million was driven primarily by a significant increase in demand for Precision Flow systems and single use disposables in Europe and the United States. Preliminary gross margin for the first quarter of 2020 is expected to be approximately 47.5% to 48.0% as compared to 42.1% for the first quarter of 2019. Cash and cash equivalents is expected to be approximately $60.0 million as of the end of the first quarter.
2020 Guidance Update
Vapotherm is withdrawing its previously announced annual guidance for 2020 which was issued on March 4, 2020. Because of the significant increase in demand due to COVID-19, which has continued into the second quarter and the inability to estimate the scope, duration, and impact of the pandemic, the Company cannot predict the full year effect on its operations and financial results. Vapotherm plans to provide additional information during its next earnings release and conference call.
The preliminary financial information presented in this press release is based on Vapotherm’s current expectations and may be adjusted as a result of, among other things, completion of customary quarterly review procedures.
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