Sonoma Pharmaceutical reports Q3 net loss cut in half after cutting expenses 40%
Sonoma Pharmaceuticals Inc. (Nasdaq: SNOA), maker of treatments for chronic and other skin conditions, on Friday reported its net loss for its fiscal third quarter was 53% less than the red ink from a year before.
Net loss for the quarter ended Dec. 31 was $1.08 million, down from $1.21 million a year before. The company attributed the improvement to a 40% decrease ($2.06 million) in operating expenses from cost-saving measures implemented a year ago, including job cuts. In late January, the company said it was exploring "strategic alternatives" for its U.S. dermatology business, including its sale.
Quarterly revenue was $4.68 million, down 11% over 12 months. Product revenues were $4.38 million, down 13%, which the company attributed to a 31% drop from U.S. partly due to the launch of Epicyn a year ago and weakening insurance reimbursements for prescription products in the most recent quarter. But product revenue grew 17% in Europe and 6% in Latin America.
“We are pleased that our third fiscal quarter results show continued progress towards our goal of building a sustainable company that can deliver both growth and profitability. This quarter is the closest we have come to break-even in the Company’s history,” said Amy Trombly, CEO of Sonoma Pharmaceuticals. Ms. Trombly continued, “We anticipate that 2020 will be a year of focusing on business strategies and geographic markets that have shown success and have future promise. We expect that our revenues and earnings will fluctuate in the near-term as we divest low or non-profitable business units and invest in strategies that have shown positive results.”
The price of the company's stock was $5 at the close of trading Friday, down 4.6%.