International Isotopes reported an 8% decline in overall revenue in its most recent earnings report, with drops in nuclear medicine and imaging volume contributing to the company’s bottom line losses.
Overall, the Idaho Falls-based firm tallied $2.34 million in revenue for the first three months of this year, compared to $2.53 million over the same time period in 2019. The company recorded a net loss of $422,494 in their first quarter ending March 31, higher than last year’s $51,958, the group said Thursday.
Much of that loss increase is attributable to lost radiological services revenue, the impact of COVID-19 on nuclear medicine product sales, and the increase in operating expenses from contract manufacturing salaries, according to Steve Laflin, president and CEO of International Isotopes.
"Like most businesses, [International Isotopes] faced challenges in the first quarter of 2020 due to COVID-19 outbreak,” Laflin added, encouraging shareholders to take a long-term view toward the company’s expected profitability for the remainder of the year.
Looking at its financials more specifically, the group reported a 5% drop in nuclear medicine sales due to “sharply slowing” sales activity during the closing three weeks of March. The pandemic, Laflin noted, led to many imaging clinics shutting doors and suspending elective exams.
The chief executive did note that order flows have started to increase since that time period, and is hopeful things will soon get back to normal.
“We also expect the impact of COVID-19 on medical imaging procedures, and our nuclear medicine products segment, will be relatively short lived,” Laflin said in the statement. “We believe many procedures have been delayed, not canceled, and that there will be a pent-up demand for these products.”
Additionally, revenues from all radiological services in the first quarter of this year fell substantially, dropping by 88% year-over-year. This is primarily due to the company suspending contracts to support “recovery of out of service sources, and removal of certain devices,” Laflin noted. He pointed to contracts held with the Department of Energy and the International Atomic Energy Agency as examples.
“The anticipated loss in revenue resulting from termination of radiological services is expected to be more than compensated for by increased sales in nuclear medicine products and the radiochemical business segment,” he added.