$NEPH reports Q4 revenue of $2.6M, anticipates cost reductions, and establishes strategic partnership.
Mar 8th 2023, 9:26 pm
Analyst Summary: Nephros, the water technology company providing filtration solutions to the medical and commercial markets, announced its Q4 and fiscal year 2022 financial results. Nephros' Q4 net revenue was $2.6 million, while for the fiscal year, revenue reached $10 million. The company had taken actions, including broad headcount and expense reductions, and disposed of its Pathogen Detection Systems business segment, to return to target gross margins of 55-60%. The company made good progress towards achieving its target of cash flow breakeven by mid-2023, and significant revenue growth by that same time. Nephros anticipates further cost reductions in Q2 due to the planned cessation of operations by its majority-owned subsidiary, Specialty Renal Products. Meanwhile, the company established a strategic partnership with Donastar Enterprises as the exclusive master distributor of Nephros' commercial filters in the food and beverage and hospitality markets. In addition, the company had already restructured its sales organization, doubled its sales team, and relaunched its commercial filtration business. Quotes: "2022 was a year of refocusing and rebuilding for Nephros. After a challenging first half of the year, we established a target of cash flow breakeven by mid-year 2023, coupled with significant revenue growth by that same time. We have made good progress on both fronts," said Andy Astor, President and Chief Executive Officer. Forward-Looking Statements: None.