PLC Systems Revenue Falls, Losses Widen
Milford medical device company PLC Systems saw its revenue drop by nearly 9 percent in the second quarter, to $363,000, over the same period last year.
The company also widened its losses for the quarter, which ended June 30. Its net loss was up to $1.4 million or 5 cents per basic share, from last year's $541,000 or 2 cents per share. PLC attributed 25 percent of the loss to the change in fair value of investor warrants and convertible notes issued during 2011 and the increase in volatility of its common stock during the quarter. The company said it's deferred $256,000 in revenue related to shipments made in the fourth quarter of 2011 and in the second quarter of 2012 to its distributor in Italy, Artech, because not all revenue recognition criteria have been met. The company expects that the remainder of the revenue will be recognized within the next year.
Revenue for the first six months of the year also dropped from $455,000 last year to $383,000. Net loss for that span was up to $8.2 million, compared to $5.6 million in 2011.
The company's cash on hand fell from $2.6 million as of the end of 2011 to $997,000 by June 30. However, PLC said it had raised another $1 million in financing after the close of the quarter. The dip in cash came from higher costs associated with the company's U.S. clinical trial of its RenalGuard, which PLC said continues to enroll patients. According to PLC's website, RenalGuard Therapy is designed to reduce the toxic effects that contrast media can have on the kidneys by matching the amount of urine needed to help the body quickly eliminate the media with sterile saline.
It also gained market approval for the product in Brazil and Israel and added distributors in Central and South America and the United Kingdom.
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