Tactile Systems Reports Strong Q2
Tactile Systems revenue and profits surged during its second quarter, the company reported on Thursday during its first results released since becoming a publicly traded company.
The Minneapolis-based medical-device maker said its revenue for the quarter ending June 30 was $19.7 million, up 34 percent from the same time last year. Profits at the company were reported at $1 million compared to just $100,000 last year.
“We are pleased with our performance in the second quarter,” CEO Gerald Mattys said in a statement. “We are still in the early stages of executing our growth strategy and look forward to pursuing future opportunities as we leverage the investments in our distribution and reimbursement infrastructure.
The results reflect the financial performance of the company before it held its initial public offering, which ended in early August. The company noted that it sold 4,120,000 shares at $10 each. Net proceeds after underwriting discounts and offering expenses were nearly $36 million.
Tactile was Minnesota’s first IPO in over 18 months. In late July, the company revised down its price per share to $10 after initially pricing it at $14 to $16 per share in June.
The significantly lower price wasn’t a bad omen for Tactile, Renaissance Capital principal Kathleen Smith told TCB in July. She said investors have been wary of IPOs and many companies have been forced to revise their prices. And the company’s unique product offerings—at-home compression therapy devices—made it hard to initially gauge what the market would accept.
Tactile, for its part, heralded the success of the IPO and said it would build off of it going forward.
“The IPO enabled us to strengthen [Tactile’s] balance sheet while providing substantial capacity to further grow the business,” CFO Lynn Blake said.
Shares of Tactile rose about 6 percent since the result were announced yesterday. The stock is currently trading at $16 per share—up significantly from where it ended on its first day on July 28 of $11.08.