RadWaste Monitor Vol. 10 No. 32
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RadWaste & Materials Monitor
Article 7 of 9
August 25, 2017

International Isotopes’ Revenue Up, Net Loss Increases, in 2Q

By Chris Schneidmiller

International Isotopes’ 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. That primarily resulted from increased legal costs from an arbitration case and higher interest expenses during the quarter, according to the company’s Aug. 16 earnings press release.

International Isotopes has sought $1.6 million for a radioactive material container it never received from another company. President and CEO Steve Laflin said this week arbitration should conclude in late August or early September, but a decision is not expected for several months.

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.

“We expect both of those areas to continue to shine this year, and, boy, next year we’re hoping for FDA approval of our sodium iodide drug product, which would really put a boost to our radiological services,” Laflin told RadWaste Monitor.

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 in Idaho and expects to reap revenue toward the end of 2017 and throughout 2018. “That will be a big shot in the arm for the company,” Laflin said in a telephone interview.

Finally, nuclear medicine revenue inched down by 1 percent and profit margin by 2 percent on a year-over-year basis.

The company expects to become profitable in 2018, based on anticipated sales of its sodium iodide product and other factors, according to Laflin.

International Isotopes Secures DOE, U.N. Contracts

International Isotopes also has been awarded multiple contracts from the U.S. Department of Energy and the United Nations’ International Atomic Energy Agency to retrieve and ship disused radioactive sources for secure storage or recycling.

“As a company we’ve been pursuing these field services jobs for many years now. … The amount of work seems to have increased. The opportunities certainly have increased,” due at least in part to increased DOE funding for off-site source recovery, Laflin said.

The radiological field services operations will be conducted in the United States and South America and are scheduled for completion by the end of this year, according to an Aug. 9 press release. “All of the contract work will involve performing source removals from inactive radiation therapy devices and shipping these devices to secure locations for storage and disposal,” the release says.

This would prevent the material from being obtained by rogue actors for illicit purposes, such as use in a “dirty bomb” that would use conventional explosives to disperse radiological contamination.

The specific number and value of the contracts were not released, but Laflin said the work is expected to boost the company’s radiological services revenue in 2017 by 120 percent from the preceding year, from between $700,000 and $800,000 to over $1.8 million. More opportunities are anticipated in 2018.

 

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