Wed, Apr 30, 11:56 AM (18 days ago)
**Surmodics, Inc. (SRDX) Q1 2025 Financial Summary** **Financial Health & Performance:** - **Revenue:** $28.1 million, a 12% decrease YoY, driven by a 31% drop in Medical Device product sales and a 76% decline in SurVeil DCB license fees. - **Profit Margins:** Gross margins decreased to 47.8% from 60.8% YoY due to declining SurVeil DCB gross profit and under-absorption. - **Operating Loss:** $(4.0) million, compared to a $0.7 million profit in Q1 2024, primarily due to increased SG&A expenses and lower product sales. - **Net Loss:** $(5.2) million, compared to a $0.2 million profit in Q1 2024. - **Cash Flow:** Negative operating cash flow of $(6.9) million, primarily due to a net loss and changes in operating assets and liabilities. **Segment Performance:** - **Medical Device:** Revenue decreased by 17% YoY to $20.7 million, with a significant drop in product sales and license fees. - **In Vitro Diagnostics:** Revenue increased by 3% YoY to $7.4 million, with stable product sales and R&D revenue. **Trends & Uncertainties:** - **Merger Uncertainty:** The pending acquisition by BCE Parent, LLC faces regulatory challenges and legal proceedings, which may impact the company's future operations and financial performance. - **Product Revenue Decline:** Expected decline in SurVeil DCB product revenue and license fees, with no full offset from other products. - **Cash Flow Management:** The company expects to manage liquidity through existing cash, cash equivalents, and the revolving credit facility. **Future Operations Impact:** - **Merger:** If completed, the merger will delist SRDX from Nasdaq and deregister under the Exchange Act. - **Product Development:** Continued investment in Pounce and Sublime platforms, with potential new product launches. - **Cash Requirements:** Long-term cash requirements depend on market acceptance of products and potential corporate transactions. **Ticker:** SRDX