Inogen swings to $18.2M profit in 2013
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Medical device maker Inogen notched $18.2 million in profits, or $1.10 per diluted share, on $75.4 million in revenue last year, the Goleta firm said in its first earnings report as a public company. Last year marked a profitable turnaround for Inogen after it recorded a $5.2 million loss in 2012.
But despite an outlook of much-higher revenue this year — in the $90 million to $94 million range, an increase of between 19 and 25 percent compared to 2013 — Inogen said it expects 2014 profits of $4 million to $5 million, down sharply from last year’s earnings.
Inogen, which makes portable oxygen concentrators for medical patients, said revenue soared 55 percent in 2013. Its sales revenue climbed 57 percent to $44 million. Rental revenue gained 54 percent to $30.5 million. The rental revenue boost was due to a larger patient population, with more than 21,300 people now renting its devices, Inogen said.
“Entering 2014, Inogen is well-positioned to continue our strong momentum, and we are focused on executing our strategic initiatives including leveraging our marketing and sales capacity, and introducing our innovative stationary oxygen concentrator to expand market penetration,” Inogen President and CEO Raymond Huggenberger said in a March 27 filing.
Inogen noted that gross margin last year was 51.7 percent, up from 49.3 percent in 2012, an increase driven largely by new product launches but also more direct-to-consumer sales and servicing fees for its devices. That increased revenue was partially offset by declining Medicare reimbursement rates, it said.
Inogen, which was spun out of UC Santa Barbara in 2001 by a group of undergraduate students, underwent a major overhaul in 2009, when it switched to selling and renting its devices directly to consumers. In its filings, the company has said it is the only portable oxygen concentrator in the U.S. that sells directly to its customers.
Inogen’s February initial public offering, which priced at $16 per share, netted $52.5 million in proceeds, it said. Shares were trading at $16.75, down 0.4 percent for the day, after the earnings announcement.
