- Revenue increased 6% in the first fiscal quarter compared to the same period last year, excluding a one-time event last year
- Margins remained consistent year over year in an inflationary period, excluding the one-time event
- Sonoma continued to manage cash tightly, using only $0.3 million of cash in its first fiscal quarter
BOULDER, CO / ACCESSWIRE / August 10, 2023 / Sonoma Pharmaceuticals, Inc. (Nasdaq:SNOA),a global healthcare leader developing and producing stabilized hypochlorous acid (HOCl) products for a wide range of applications, including wound, eye, oral and nasal care, dermatological conditions, podiatry, animal health care and non-toxic disinfectants, today announced financial results for its first fiscal quarter ended June 30, 2023.
"We continued to grow our core business in the first fiscal quarter by adding new products, partners and territories while containing costs," said Amy Trombly, CEO of Sonoma. "Excluding a one-time event in the prior year, our first fiscal quarter revenues increased 6% compared to the same period last year, demonstrating continued customer demand for existing and new applications of our technology."
Business Highlights
Sonoma continued to meet customer needs by introducing new products and expanding its worldwide distribution network:
On June 8, 2023, Sonoma announced a new application of its Microcyn® technology for intraoperative pulse lavage irrigation treatment, which can replace commonly used IV bags in a variety of surgical procedures and is expected to be ready for commercial use in Europe in September 2023. Commercial launch in the U.S. is anticipated in 2024.On April 11, 2023, Sonoma launched PodiacynTM Advanced Everyday Foot Care direct to consumers for over-the-counter use in the United States, intended for management of foot odors, infections, and irritations, as well as daily foot health and hygiene.Sonoma continued to expand its reach in the Middle East and in Asia, when one of its existing distribution partners initiated sale of Sonoma's wound care products in Saudi Arabia, and another distributor expanded sales in Uzbekistan.Results for the Quarter Ended June 30, 2023
Total revenues for the quarter ended June 30, 2023 of $3.4 million decreased by $0.6 million, or 14%, as compared to $4.0 million for the same period last year. In the quarter ended June 30, 2022, Sonoma sold machinery to a customer in Latin America for $750,000, which management expects to be a one-time event. Excluding that event, revenue for the quarter ended June 30, 2023 increased by $0.2 million, or 6%, compared to the same period last year. Revenues in Europe increased 27% compared to the same period last year as the result of increased demand for Sonoma's products. Revenues decreased in Asia and Rest of World when compared to the same period last year. These revenues tend to be choppy when viewed on a quarterly basis due to customers placing larger, but less frequent, orders to benefit from quantity discounts and reduced shipping costs when ordering larger quantities.
During the quarter ended June 30, 2023, Sonoma reported revenues of $3.4 million and cost of revenues of $2.2 million resulting in gross profit of $1.2 million, or 35% of revenue, compared to a gross profit of $1.6 million, or 41% of revenue in the same period last year. The decline is the result of the sale of machinery in Latin America in 2022, which management expects to be a one-time event, and changes in product mix and territories to which products are shipped.
Total operating expenses during the quarter ended June 30, 2023 were $2.4 million and nearly flat as compared to the same period in the prior year.
Net loss for the quarter of $1.4 million increased by $0.5 million, or 60%, when compared to a net loss of $0.9 million for the quarter ended June 30, 2022. The increase in net loss is primarily related to the one-time event equipment sale in Latin America in 2022 as well as the factors discussed above. EBITDA loss for the quarter ended June 30, 2023 of $1.0 million remained flat, compared to an EBITDA loss of $1.0 million for the same period last year.
As of June 30, 2023, Sonoma had cash and cash equivalents of $3.5 million.
About Sonoma Pharmaceuticals, Inc.
Sonoma Pharmaceuticals is a global healthcare leader for developing and producing stabilized hypochlorous acid (HOCl) products for a wide range of applications, including wound, eye, oral and nasal care, dermatological conditions, podiatry, animal health care and non-toxic disinfectants. The company's products reduce infections, itch, pain, scarring and harmful inflammatory responses in a safe and effective manner. In-vitro and clinical studies of hypochlorous acid (HOCl) show it to have impressive antipruritic, antimicrobial, antiviral and anti-inflammatory properties. Sonoma's stabilized HOCl immediately relieves itch and pain, kills pathogens and breaks down biofilm, does not sting or irritate skin and oxygenates the cells in the area treated assisting the body in its natural healing process. The company's products are sold either directly or via partners in 55 countries worldwide and the company actively seeks new distribution partners. The company has its corporate headquarters in Boulder, Colorado as well as manufacturing operations in Latin America. European marketing and sales are headquartered in Roermond, Netherlands. More information can be found at www.sonomapharma.com. For partnership opportunities, please contact [email protected].
Forward-Looking Statements
Except for historical information herein, matters set forth in this press release are forward-looking within the meaning of the "safe harbor" provisions of the Private Securities Litigation Reform Act of 1995, including statements about the commercial and technology progress and future financial performance of Sonoma Pharmaceuticals, Inc. and its subsidiaries (the "company"). These forward-looking statements are identified by the use of words such as "continue," "reduce," "develop," "aim," and "expand," among others. Forward-looking statements in this press release are subject to certain risks and uncertainties inherent in the company's business that could cause actual results to vary, including such risks that regulatory clinical and guideline developments may change, scientific data may not be sufficient to meet regulatory standards or receipt of required regulatory clearances or approvals, clinical results may not be replicated in actual patient settings, protection offered by the company's patents and patent applications may be challenged, invalidated or circumvented by its competitors, the available market for the company's products will not be as large as expected, the company's products will not be able to penetrate one or more targeted markets, revenues will not be sufficient to meet the company's cash needs or fund further development, as well as uncertainties relative to the recent pandemic and economic development, varying product formulations and a multitude of diverse regulatory and marketing requirements in different countries and municipalities, and other risks detailed from time to time in the company's filings with the Securities and Exchange Commission. The company disclaims any obligation to update these forward-looking statements, except as required by law.
Sonoma Pharmaceuticals™, Microcyn® and PodiacynTM are trademarks or registered trademarks of Sonoma Pharmaceuticals, Inc. All other trademarks and service marks are the property of their respective owners.
Media and Investor Contact:
Sonoma Pharmaceuticals, Inc.
[email protected]
SONOMA PHARMACEUTICALS, INC. AND SUBSIDIARIES
Condensed Consolidated Balance Sheets
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SONOMA PHARMACEUTICALS, INC. AND SUBSIDIARIES
Condensed Consolidated Statements of Comprehensive Loss
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SONOMA PHARMACEUTICALS, INC. AND SUBSIDIARIES
RECONCILIATION OF GAAP MEASURES TO NON-GAAP MEASURES
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SONOMA PHARMACEUTICALS, INC. AND SUBSIDIARIES
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The following table shows consolidated total revenue and revenue by geographic region for the three months ended June 30, 2023 and 2022:
SOURCE: Sonoma Pharmaceuticals, Inc.
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