New product breathes life into Inogen third-quarter earnings
Goleta-based Inogen, a maker of direct-to-consumer respiratory products, saw its shares jump after the company reported third-quarter revenue rose 48.5 percent to $29.4 million. Profits of 11 cents per share bested analyst estimates by a nickel.
Inogen, founded by five former UC Santa Barbara students, also said net income will be $5.5 million to $6.0 million for the year, up from an earlier projection of $4.5 million to $5.5 million.
Inogen’s third-quarter revenue came in higher than analyst projections of $28 million. Prior to the earnings announcement, Inogen shares climbed 79 cents, or 3.4 percent, on Nasdaq, closing at $25.44 on Nov. 11.
Inogen has benefited from the October release of its Inogen at Home product, which is the lightest continuous-flow oxygen concentrator available to consumers. It successfully floated an additional 2.4 million shares sold by existing stockholders and has announced an expanded credit line with J.P. Morgan Chase.
“For the first nine months of 2014, revenues reflect nearly 50 percent year-over-year growth, and I am encouraged by the strong momentum of our business model,” said President and CEO Raymond Huggenberger. “Inogen is the only manufacturer currently offering a portable oxygen concentrator directly to consumers in the United States, and our patient-centric programs have been successful in driving strong demand and brand awareness.”
The company reported nearly 93 percent growth in its business-to-business segment, the fastest growth part of its sales channel for the quarter.