Inogen, the Goleta-based maker of direct-to-consumer respiratory products, on April 27 reported fourth-quarter profit of $1.5 million.
The company said it had net income of 7 cents per share. Earnings, adjusted for pretax gains, were 6 cents per share.
Inogen, which produces oxygen concentrators for patients suffering from chronic respiratory conditions, posted revenue of $29.1 million in the period, which beat Wall Street forecasts. Four analysts surveyed by Zacks Investment Research expected $26.4 million. The company’s earnings kept pace from the previous quarter when its revenue increase 48.5 percent to $29.4 million, posting profits of 11 cents per share.
The company’s shares have increased 22 percent since the beginning of the year and its stock has more than doubled in the last 12 months.
Inogen, founded by five former UC Santa Barbara students, confirmed its 2015 net income to be in the range of $8 million to $9.5 million, an increase of 17.2 percent to 39.2 percent over 2014.
The company previously disclosed that during the first quarter, management discovered accounting errors, prompting the firm’s audit committee, with the assistance of independent advisors, to commence an internal investigation. As a result of the investigation, the company found that five Inogen sales representatives falsified or improperly modified sales and rental order documentation and circumvented Inogen’s order entry process. To correct the accounting, fourth-quarter revenue was reduced by $300,000. The net income impact was a reduction of $100,000 in the fourth quarter of 2014.
Despite the accounting oversight, 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 previously floated an additional 2.4 million shares sold by existing stockholders and has announced an expanded credit line with J.P. Morgan Chase.