Rockwell Medical Boosts Full-year Sales Outlook, Speeds Up Profitability Timeline

(RTTNews) - Rockwell Medical Inc. (RMTI), which has made significant progress in boosting its revenue and cutting down its expenses, is now projecting to achieve profitability in the fourth quarter of 2023 and beyond.

This healthcare company is involved in the manufacturing and distribution of hemodialysis products for dialysis providers worldwide.

For the second quarter ended June 30, 2023, the results of which were reported today, the following are the numbers.

Net sales for the second quarter of 2023 were $18.1 million compared to $19.7 million in the first quarter of 2023, and $18.7 million in the second quarter of 2022. The variation between net sales in the first quarter of 2023 and the second quarter of 2023 is attributed to the timing of recognizing product revenue.

The net loss narrowed to $3.3 million or $0.18 per share in the second quarter of 2023 from $5.0 million or $0.43 per share for the same period in 2022.

The operating loss shrunk to $2.96 million in the second quarter of 2023, from $4.48 million in the year-earlier quarter.

Recent acquisition

Seeking to increase its presence in the hemodialysis marketplace, Rockwell Medical acquired the hemodialysis concentrates business from Evoqua Water Technologies on July 10, 2023. The acquisition enables Rockwell to become a leading supplier of liquid bicarbonate products to dialysis centers in the United States.

Q3 Outlook and Revised 2023 Guidance

For the third quarter ending Sep.30, 2023, Rockwell Medical anticipates net sales to be between $21.0 million and $23.0 million. Net sales were $18.7 million in the third quarter of 2022.

Looking ahead to full year 2023, the company now expects net sales to range between $82.0 million and $86.0 million, up from its prior guidance range of $78.0 million and $82.0 million. Net sales were $72.81 million last year.

The company has also increased its gross profit outlook for the year, raising it to a range of $8.0 million and $10.0 million from the prior range of $7.0 million to $9.0 million.

The timeline for achieving profitability has been accelerated, and the company now expects to be profitable in the fourth quarter 2023 and beyond. Earlier, profitability was expected to be achieved in 2024.

RMTI has traded in a range of $0.84 to $6.24 in the last 1 year. The stock closed yesterday's trading at $2.98, UP 2.76%. In premarket trading today, the stock is up 9% at $3.25.