Tactile Systems Technology(US:TCMD)2025-05-05 20:06Revenue and Sales Performance - Revenue for the three months ended March 31, 2025, was $61.3 million, a slight increase of $0.2 million or 0.3% compared to $61.1 million for the same period in 2024[109] - Sales of airway clearance products increased by $1.9 million, or 22%, to $10.7 million, while lymphedema product sales decreased by $1.8 million, or 3%, to $50.6 million[113] - The AffloVest product line accounted for 17% of total revenue in the three months ended March 31, 2025, up from 14% in the same period in 2024[101] Profitability and Expenses - Gross margin improved to 74% for the three months ended March 31, 2025, compared to 71% for the same period in 2024[116] - Operating expenses rose by $3.5 million, or 8%, to $49.9 million, driven primarily by a $3.7 million increase in reimbursement, general, and administrative expenses[112] - Net loss for the three months ended March 31, 2025, was $3.0 million, compared to a net loss of $2.2 million for the same period in 2024, reflecting a 35% increase in losses[109] Research and Development - Research and development expenses decreased by $0.4 million, or 19%, to $1.7 million, primarily due to lower clinical study-related expenses[119] - The company launched the Entre Plus system in March 2024 and the Nimbl platform for lymphedema in October 2024, indicating ongoing product development[100] Financial Position and Cash Flow - As of March 31, 2025, the company had cash of $83.6 million and net accounts receivable of $35.7 million, compared to cash of $60.7 million and net accounts receivable of $47.4 million at March 31, 2024[124] - Net cash provided by operating activities was $0.4 million for the three months ended March 31, 2025, down from $0.9 million for the same period in 2024[125][126] - Net cash used in investing activities was $0.4 million for the three months ended March 31, 2025, compared to $0.5 million for the same period in 2024[127] - Net cash used in financing activities was $10.8 million for the three months ended March 31, 2025, primarily due to $10.0 million for the repurchase of common stock[128] - The company repurchased 635,603 shares for approximately $10.0 million during the three months ended March 31, 2025, with approximately $16.5 million remaining authorized under the stock repurchase program[140] Debt and Tax - As of March 31, 2025, the company had outstanding borrowings of $25.5 million under the Credit Agreement, with a required quarterly repayment of $750,000[137] - The company recorded an income tax benefit of $1.1 million for the three months ended March 31, 2025, up from $0.6 million in the same period in 2024[123] Interest Income and Expense - Interest income increased by $0.2 million, or 26%, to $0.9 million for the three months ended March 31, 2025, compared to $0.7 million for the same period in 2024[122] - Interest expense decreased by $0.2 million, or 25%, to $0.4 million for the three months ended March 31, 2025, compared to $0.6 million for the same period in 2024[122] Strategic Investments - The company continues to invest in its commercial infrastructure, including a direct sales force and reimbursement capabilities, to support growth[102] - The company estimates potential impacts of tariffs on its cost of goods sold could be up to $5.0 million for the year ended December 31, 2025[145] Workforce - The company employed 161 account managers and 103 specialists for lymphedema products as of March 31, 2025, compared to 158 account managers and 111 specialists a year earlier[104]