Petaluma-based Sonoma Pharmaceuticals reported fiscal year revenue increased by 30 percent in the year ending in March. The $16.7 million in revenue compares to $12.8 million for fiscal year 2017.
As a developer of treatments for dermatological conditions and advanced tissue care, the company said it product component of that revenue picture for the fiscal year was $15.7 million for fiscal year 2018, an increase of $3.7 million, or 31 percent over the past year, according to results released Wednesday.
Its report stated the outcomes for the fourth quarter were not as strong.
Total revenue of $3.7 million for the fourth quarter, ended March 31, was down slightly when compared to $4 million for the same period last year. Product revenues of $3.3 million for the fourth quarter ended March 31, 2018, were down 14 percent, or $530,000, when compared to the same period last year.
Sonoma Pharmaceuticals blamed slowed sales in the U.S., boosted by stronger sales in Latin America where it has signed cooperative deals with drug companies there and obtained government approvals to market certain drugs.
“The fourth quarter dermatology market was challenging for us as we experienced a decline in product revenues due to the impact of health insurance deductible resets at the beginning of the calendar year and the impact of increased product rebates,” stated Jim Schutz, Sonoma Pharmaceuticals CEO, in the announcement.
Product revenue in the United States of $1.4 million, for the three months ended March 31, 2018, decreased by $477,000, or 26 percent, as compared to $1.8 million for the three months ended March 31, 2017. Meanwhile, product revenue in Latin America for the quarter ended March 31, 2018, was $912,000, up 9 percent from the same period last year.
The company reported gross profit of $7.3 million, and $5.7 million, for the 12 months ended March 31, 2018 and 2017, respectively.