Dive Brief:
- Escalon Medical Corporation, which specializes in ophthalmology devices, was recently notified by NASDAQ that it is not in compliance with the market's minimum $2.5 million stockholder's equity requirement for listing.
- The company has 45 days to submit a plan to regain compliance, and said it intends to do so.
- Sales were down 8% to $5.77 million in the second half of 2015, and the company made layoffs in October to reduce annual expenses.
Dive Insight:
According to PR Newswire, the company reported consolidated product revenue dropped from $3.7 million to $2.98 million for its second quarter of fiscal 2016 due to a decrease of $639,000 in ultrasound products, and a decrease of $109,000 in digital imaging and Axis image management systems. The company also had supply-chain shortages that increased back-logged orders to $680,000.
"Product revenues were disappointing in the quarter due to the continued issue of unfulfilled sales orders resulting from supply-chain shortages." Escalon CEO Richard J. DePiano said in a prepared statement. "We will work tirelessly to continue to drive improved operational and financial results throughout the balance of 2016," he added.
In 2013, the company introduced two new products - a tablet-based ultrasound system called Sonomed Escalon VuPad, and an ophthalmic ultrasound system for high-resolution imaging the posterior part of the eye called VuMax. It also develops and markets surgical products, including intraocular gases and fiber optic light guides and sources.