Stock to Keep Your Eyes on Conformis, Inc. (NASDAQ: CFMS)

On 05 March, Conformis, Inc. (NASDAQ: CFMS) stock concluded the recent trade at $1.2500 with upbeat/downbeat trend move of -0.79%. The company has got a 52-week exceptional price of $1.8400 and reached a 52-week lowest of the share price at $0.3580. After opening the first trading session at $1.2600, it registered a day’s high of $1.2600 and touched a day’s low of $1.2000.

Conformis, Inc. (CFMS) reported recently financial results for the fourth quarter and year ended December 31, 2018.

FIRST QUARTER Summary

  • Total revenue of $22.0M, up 6% year-over-year on a stated basis and 7% year-over-year on a constant currency basis
  • Product revenue of $21.9M, up 7% year-over-year on a stated and constant currency basis
    • U.S. product revenue of $19.4M, up 10% year-over-year
    • Rest of World product revenue of $2.5M, down 14% year-over-year on a stated basis and 12% on a constant currency basis
  • Royalty revenue of $0.1M, down 42% year-over-year
  • Gross margin of 49%, an raise of 700 basis points year-over-year

2018 Summary

  • Total revenue of $89.8M, up 15% year-over-year on a stated basis, including a royalty settlement of $10.5M, and 14% year-over-year on a constant currency basis
  • Product revenue of $78.6M, up 2% year-over-year on a stated basis and 1% on a constant currency basis
    • U.S. product revenue of $68.1M, up 6% year-over-year
    • Rest of World product revenue of $10.6M, down 17% year-over-year on a stated basis and 22% year-over-year on a constant currency basis
  • Royalty revenue of $11.2M, up 1,000% year-over-year
  • Gross margin of 54%, an raise of 1,700 basis points year-over-year

Fourth Quarter 2018 Financial Results

Total revenue for the three-month period ended December 31, 2018 raised $1.3M to $22.0M, or 6% year-over-year on a stated basis and 7% on a constant currency basis. Total revenue in the fourth quarter of 2018 and 2017 includes royalty revenue of $0.1M and $0.3M, respectively, related to patent license contracts.

Product revenue raised $1.4M to $21.9M, or 7% year-over-year on a stated and constant currency basis. U.S. product revenue raised $1.8M to $19.4M, or 10% year-over-year, and Rest of World product revenue reduced $0.4M to $2.5M, or 14% year-over-year on a stated basis and 12% on a constant currency basis.  Product revenue from sales of iTotal PS raised $2.0M to $7.8M or 34% year-over-year on a stated and constant currency basis.  Product revenue from sales of iTotal CR, iDuo and iUni reduced $1.1M to $13.5M, or 8% year-over-year on a stated basis and 7% on a constant currency basis. Conformis Hip System sales in the fourth quarter of 2018 was $0.6M, which was all in the U.S.

Total gross profit raised $2.1M to $10.9M, or 49% of revenue, in the fourth quarter of 2018, contrast to $8.8M, or 42% of revenue, in the fourth quarter of 2017. This 700 basis point raise in gross margin year-over-year was driven primarily by cost reductions as a result of vertical integration and manufacturing efficiencies.

Total operating expenses reduced $1.2M to $19.2M, or 6% year-over-year. This decrease in expenses was driven primarily by a decrease in general and administrative expense Because of reductions in patent litigation expense, and lower sales and marketing and R&D costs Because of a decrease in personnel costs.

Fiscal Year 2018 Financial Results

Total revenue for the twelve-month period ended December 31, 2018 raised $11.7M to $89.8M, or 15% year-over-year on a stated basis and 14% on a constant currency basis. Total revenue includes royalty revenue of $11.2M for the year ended 2018 and $1.0M for the year ended 2017 related to patent license contracts. The raise in royalty revenue is primarily Because of the royalty settlement of $10.5M from Smith & Nephew in the third quarter of 2018.

Product revenue raised $1.5M to $78.6M, or 2% year-over-year on a stated basis and 1% on a constant currency basis. U.S. product revenue raised $3.7M to $68.1M, or 6% year-over-year, and Rest of World product revenue reduced $2.2M to $10.6M, or 17% year-over-year on a stated basis and 22% on a constant currency basis.  Product revenue from sales of iTotal PS raised $4.6M to $25.9M or 21% year-over-year on a stated and constant currency basis.  Product revenue from sales of iTotal CR, iDuo and iUni reduced $3.8M to $52.0M, or 7% year-over-year on a stated basis and 8% on a constant currency basis. Conformis Hip System sales for 2018 was $0.8M, which was all in the U.S.

Return on assets ratio of the Company was -53.30% and return on equity ratio was -101.10% while its return on investment ratio was -73.50%. The stock price switched up 17.97% 20-Days Simple Moving Average, added 74.17% from 50-Days Simple Moving Average and rose 34.67% from 200 Days Simple Moving Average.

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