Tue, Jan 14, 10:08 PM (27 days ago)
Biomerica, Inc. (BMRA) reported a mixed quarterly performance for the period ending November 30, 2024. Net sales increased by 4% to $1,636,000 compared to $1,567,000 in the same period last year, primarily driven by higher sales in the Middle East and increased contract manufacturing. However, clinical lab sales declined by 22%. Gross profit improved with a cost of sales reduction to 73% of net sales, down from 79% the previous year, attributed to a workforce reduction aimed at cost control. Operating expenses decreased significantly, with selling, general, and administrative expenses dropping 23% to $1,173,000, and R&D expenses down 38% to $257,000, reflecting the company's strategic cost-cutting measures. Despite these reductions, the company reported a net loss of $950,000, an improvement from $1,507,000 in the prior year. Liquidity remains a concern, with cash and cash equivalents falling to $2,372,000 from $4,170,000, leading to questions about the company's ability to sustain operations without additional financing. Biomerica is actively pursuing strategies to increase revenue and reduce expenses while facing uncertainties in future operations due to market conditions.