0001193125-26-214571
SEC filingA transformative quarter driven by the terminated Alcon merger, with net income surging on non-operating gains, though core revenue declined on lower system sales.
Revenue decreased 5.2% to $13.4 million from $14.2 million in the prior year. The decline was primarily due to lower system sales, partially offset by higher service revenue from an increased number of system placements. The company continues to shift toward a recurring revenue model, with service and lease revenue growing as the installed base expands.
Net cash used in operating activities was $4.3 million, an improvement from $6.9 million in the prior year. Capital expenditures remained minimal at $6,000, resulting in free cash flow of negative $4.3 million. The company continues to manage liquidity carefully amid ongoing supply chain disruptions and tariff impacts.
Management expects revenue and expenses to increase as it executes its growth strategy, including expanding sales and customer support teams and increasing its leased equipment fleet. However, ongoing global supply chain disruptions, inflationary pressures, and recently enacted tariffs have negatively affected capital requirements, and additional operating capital may be needed. The company also faces risks from its reliance on purchase orders rather than long-term supply agreements for components.