International Isotopes said Wednesday its revenue increased by 5 percent in the second quarter of 2017, even as its net loss spiked by 36 percent on the back of higher expenses.
For the quarter that ended June 30, the Idaho Falls nuclear medicine specialist reported nearly $1.8 million in revenue, up from about $1.7 million in the same period of 2016. Six-month revenue rose by 7 percent on a year-over-year basis: from $3.4 million to $3.6 million.
Nonetheless, quarterly net loss grew from $445,427 in 2016 to $602,195 this year due to additional sales and general and administrative costs. The six-month picture was worse, with net loss rising 69 percent from $819,945 in 2016 to $1.4 million in 2017. “This increase in net loss was largely the result of increased legal expense incurred for arbitration proceedings and increase interest expense recorded during the period,” according to the company’s earnings press release.
The revenue picture was mixed across International Isotopes’ business segments, with two up and two down for the latest quarter.
Radiological services revenue rose 30 percent year over year, even as profit margin dipped by 7 percent, to 41 percent, due to higher operational expenses.
Radiochemical products revenue was up by 39 percent from 2016, after a competing sodium iodide manufacturer halted production in 2016. Profit margin dipped by 5 percent, to 19 percent, due to slightly higher production costs.
Cobalt products sales in the quarter slid by 56 percent from 2016, and the profit margin dropped by 14 percent. Management attributed the declines to a paucity of cobalt for production of sources. International Isotopes is now producing cobalt at an Energy Department test reactor and expects to reap revenue toward the end of 2017 and throughout 2018, the press release says.
Finally, nuclear medicine revenue inched down by 1 percent and profit margin by 2 percent on a year-over-year basis.
In the release, International Isotopes President and CEO Steve Laflin said the company is pleased with the results from the radiochemical and radiological services businesses. He said a number of factors, including the anticipated sales of a new sodium iodide product early next year following an expedited review by the Food and Drug Administration, should push the company into profitability in 2018.
