Surmodics(SRDX) - 2025 Q1 - Quarterly Results

Financial Performance - Total revenue for Q1 FY2025 was $29.9 million, a decrease of 2% year-over-year from $30.6 million in Q1 FY2024[4] - Medical Device revenue decreased by $0.3 million, or 1%, to $23.3 million, while In Vitro Diagnostics revenue decreased by $0.4 million, or 5%, to $6.6 million[5][6] - GAAP net loss was $(3.7) million, or $(0.26) per diluted share, compared to a net loss of $(0.8) million, or $(0.06) per diluted share in the prior-year period[9] - Adjusted EBITDA for Q1 FY2025 was $3.6 million, down from $3.9 million in Q1 FY2024[10] - Product sales decreased by 12% to $16,548,000 in Q1 2025 from $18,827,000 in Q1 2024[22] - Net loss for the quarter was $3,651,000, compared to a net loss of $786,000 in the prior year[22] - Adjusted EBITDA for the quarter was $3,641,000, a decrease of 7% from $3,934,000 in Q1 2024[31] - The company reported a basic net loss per share of $0.26, compared to a loss of $0.06 per share in the prior year[22] Cash and Assets - The company reported $30.1 million in cash and investments as of December 31, 2024, with a decrease of $10.0 million in cash and investments during the quarter[11] - Cash and cash equivalents decreased to $30,145,000 from $36,115,000 at the end of the previous quarter[24] - Total assets decreased to $163,740,000 from $178,562,000 at the end of the previous quarter[24] - Total liabilities decreased to $51,971,000 from $59,665,000 at the end of the previous quarter[24] Operating Costs - Operating costs increased by $2.9 million, or 13%, primarily due to merger-related charges[8] - Total operating costs and expenses increased to $32,403,000, up from $30,874,000 in the same quarter last year[22] - The company reported merger-related charges of $2,264 million for the three months ended December 31, 2024, which were not tax deductible[34] Merger and Acquisition - The company is engaged with the FTC regarding the pending acquisition by GTCR, with the goal of completing the merger by the end of Q2 FY2025[4][15] - Merger agreement with GTCR values Surmodics at approximately $627 million, with shareholders set to receive $43.00 per share in cash[4][14] - The company is undergoing a proposed acquisition by GTCR, which has resulted in specific merger-related expenses[36] Product Performance - Product gross margin improved to 55.1%, up from 53.2% in the prior-year period, driven by a favorable product mix[7] - Medical Device revenue, excluding SurVeil DCB license fees, was $22,030,000, down 2% from $22,574,000 year-over-year[28] - The company recognized revenue from SurVeil DCB license fee under the Development and Distribution Agreement with Abbott[36] Shareholder Information - The diluted weighted average shares outstanding for the three months ended December 31, 2024, were 14,231 million[34]