NeuroMetrix Inc (NASDAQ: NURO) was a big loser in yesterday’s trading session. This was after the company posted lower than expected Q4, and full-year 2019 results. The company reported that in Q4 of 2019, revenues dropped by 54% to stand at $1.7 million, compared to $3.7 million in a similar quarter in the last financial year. It also reported that the gross margin in Q4 was $1.1 million, slightly lower than the $1.7 million that it reported in a similar period in the previous financial year.
Nonetheless, there was an improvement in the gross margin rate from 46.9% in the same period in 2018, to 62.2% in the current period. The company also reported a drop in operating expenses in Q4, from $4.6 million in 2018 to $2.7 million. On top of that, the company announced that, its net loss in the quarter had dropped to $1.1 million compared to a loss of $2.8 million in Q4 of 2018.
As for the full-year results, the company reported a decline in total revenues from $16.1 million in 2018 to $9.3 million in 2019. On top of that, the company’s gross margin in 2019 was $2.2 million, lower than the gross margin of $7.4 million in 2018. However, the company’s operating expenses dropped from $19.7 million in 2018 to $13.8 million.
Commenting on the results, CEO Shai N. Gozani stated that, although the company was not happy with the financial results, the outcome was expected. That’s because, the company reduced its operating expenses, and shifted its focus to long term growth. He also added that, the company experienced a high demand for DPNCheck in Q4, which ideally is the weakest quarter. He further stated that, he expected this momentum to increase in 2020.
Looking at its price action, NURO gapped down in yesterday’s session, and opened the day at $3.15. It then traded between a high of $3.65 and a low of $3.08, before closing the day at $3.52. Volumes in the day stood at 674.38k.
About NeuroMetrix Inc
NeuroMetrix Inc is a healthcare company that develops products for nerve and spinal disorders. It is based in Waltham, Massachusetts.