Cogentix Sees Sales Grow, But Proxy Charges Cut Result In $2.3M Loss
Cogentix Medical Inc.’s revenue growth trend continued in its second quarter with a 17 percent increase in sales from a year ago, the company said Tuesday.
Every department within the Minnetonka-based medtech company reported revenue growth during the three-month period ending June 30.
“Central to our revenue acceleration during the quarter is our expanding urology customer base as well as increased utilization by the majority of our longer term customers,” Darin Hammers, CEO of Cogentix, said in a statement.
In particular, Hammers pointed to the more than 15 percent year-over-year sales increases from both the company’s Urgent PC Neuromodulation device, which treats bladder dysfunction, and its PrimeSight endoscopy device, which is used to look inside a person’s body, typically for digestive issues.
However, between the cost to manufacture its products and its operating expenses, Cogentix reported a roughly $2.3 million loss for the quarter. Nearly the entire loss can be attributed to a more than $2.1 million proxy settlement charge it incurred in May.
At that time, then-Cogentix CEO Robert Kill resigned from his leadership role, along with two of the company’s board directors. Darin Hammers, who was Cogentix’s chief operating officer then, took over the top leadership role, while the company’s board said it would “use [its] best efforts to nominate and elect two new outside, independent directors.”
Hammers added that the company’s momentum is steady, although he warned of “an enhanced competitive operating environment” that could potentially affect future results.