DRAPER, Utah, Aug. 17, 2017 /PRNewswire/ -- Flexpoint Sensor Systems, Inc. (FLXT) today announced the company's financial results for the second quarter ended June 30, 2017.
Q2 Financial Results for the three months ended June 30, 2017
- Net revenues total $154,639. This compared to net revenues of $93,039 for the same period in 2016, an increase of 66.2%.
- Total operating expenses were $317,883 versus $278,728 during Q2 2016, and increase of 14%.
- Cost of revenue was $30,892, resulting in gross margins of 80.0%.
- Net loss decreased to $193,474 or (.00) EPS from a net loss of $414,381 or (-.01) EPS during the same period in 2016. Net loss decreased $221,007 or 53.3%.
Highlights for six months, ending June 30, 2017
- Net revenues total $215,701. This compared to net revenues for $128,205 for the two quarters ending in Q2 2016, an increase of 68.2%.
- Total operating expenses were $584,534 versus $561,293, up 4.1%.
- Net loss decreased to $484,971 versus net loss during the first six months of 2016 was $883,856, a decline of 45.1%.
Second quarter highlights
As previously projected, the biggest contributors to Q2 2017 revenue were glove based products and the toy relationship. The company still expects to deliver on approximately a million sensors in 2017 for the toy manufacturer.
Many of these glove applications relate to the VR/AR (virtual reality/augmented reality) market segment. This market segment is being driven by increasing market demand from B2B, gaming and military customers, among others. Some VR/AR partners include ManusVR, Virtual Motion Labs and CaptoGlove.
The medical and medical IoT device market segment has continued to provide consistent order volume. Q2 2017 has seen an increase in medical device related revenue contribution, and the company expects this to further increase in Q3 2017 and going forward. Some partners in the medical IoT space include 11Health, Neofect, Gloreha and YouReHab; all with differentiated products; many of which are focused on medical rehabilitation.
The company anticipates Q3 and Q4 revenues accelerating at a faster rate due to the number and size of purchase orders already received and other factors. The company remains on track for its goal of becoming cash flow positive during the next three to six months.
"The Company continues to concentrate its marketing resources on a limited number of customers that have the greatest potential to generate the most short-term revenue while still building relationships with our larger customers. Management anticipates revenues will increase as we continue to execute our long-term business plan and cultivate larger customer bases with our existing product offering. Therefore, management continues to work with larger companies and industries, and is hopeful that in the near future we will sign a long-term licensing or manufacturing contract," stated Paul Sexauer, Flexpoint Vice President of Sales and Marketing.
Clark Mower, Flexpoint President added, "We received revenue from repeat orders from our existing customers, as well as design contract and development engineering. The majority of the revenue for this period came from production products. This is an important development as it leads to continued future growth."
The Company will host a conference call today, August 17th at 1:00 p.m. ET/11:00 a.m. MT to discuss the financial results and recent business developments. To participate in the call, please dial 530-881-1212 and enter ID pin 615-253-385#.
For a full earnings report please view our entire filing at www.sec.gov.
Please visit http://www.flexpoint.com/ for more information.
About Flexpoint Sensor Systems, Inc.
Flexpoint Sensor Systems, Inc. (FLXT) is an innovative technology firm specializing in developing products that feature the Company's patented Bend Sensor® and related technology. The Bend Sensor® is a groundbreaking, differentiated sensing solution that is revolutionizing applications in the VR/AR, wearable, IoT, automotive, safety, medical and industrial industries. The Bend Sensor's single-layer, thin film construction cuts costs and mechanical bulk while introducing a range of functions and stylistic design possibilities that have never before been available in sensing technology. Flexpoint's technology and expertise have been recognized by the world's elite business and academic innovators for over 17 years. The company is setting a new standard for sensing solutions in the "smart" age of technology.
This press release contains certain forward-looking statements. Investors are cautioned that certain statements in this release are "forward-looking statements" and involve both known and unknown risks, uncertainties and other factors. Such uncertainties include, among others, certain risks associated with the operation of the company described above. The Company's actual results could differ materially from expected results.
Flexpoint Sensor Systems
Clark Mower, President
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SOURCE Flexpoint Sensor Systems, Inc.