CardioNet remains in the black, despite cost reduction initiatives
CardioNet, a wireless medical technology company that focuses on the diagnosis and monitoring of cardiac arrhythmias, has fallen deeper into net losses due to falling sales, as reported in its results for the 2010 first quarter, which ended March 31.
The net loss for the first quarter 2010 was $5.4 million, compared to a net loss of $700,000 for the first quarter 2009, the company reported.
However, revenues for the first quarter 2010 were $31.8 million compared to $35.7 million in the first quarter 2009, a decrease of $3.9 million. Increased MCOT patient volume drove additional revenues, but was offset by the impact of the Medicare rate reduction as well as lower commercial reimbursement versus the prior year, CardioNet reported.
Also, the company said its operating loss was $5.4 million in the first quarter 2010 compared to operating loss of $1.3 million in the first quarter 2009.
“We made significant progress in our cost reduction initiatives with more than $3 million in savings during the first quarter 2010,” said Heather Getz, CardioNet’s chief financial officer “The cost reductions contributed to a gross margin improvement of 220 basis points and a seven percentage point improvement in adjusted operating margin compared to the fourth quarter 2009.
The net loss for the first quarter 2010 was $5.4 million, compared to a net loss of $700,000 for the first quarter 2009, the company reported.
However, revenues for the first quarter 2010 were $31.8 million compared to $35.7 million in the first quarter 2009, a decrease of $3.9 million. Increased MCOT patient volume drove additional revenues, but was offset by the impact of the Medicare rate reduction as well as lower commercial reimbursement versus the prior year, CardioNet reported.
Also, the company said its operating loss was $5.4 million in the first quarter 2010 compared to operating loss of $1.3 million in the first quarter 2009.
“We made significant progress in our cost reduction initiatives with more than $3 million in savings during the first quarter 2010,” said Heather Getz, CardioNet’s chief financial officer “The cost reductions contributed to a gross margin improvement of 220 basis points and a seven percentage point improvement in adjusted operating margin compared to the fourth quarter 2009.