Goleta-based Inogen expects minor revenue growth in the fourth quarter of 2021 but major growth for the full fiscal year, according to preliminary estimates the company released Jan. 10.
The portable oxygen concentrator manufacturer expects to see revenue in the range of $75.9 million to $76.9 million for the three months ended December 31, growth of 2.5% to 3.5% from the same period a year ago.
For the full year of 2021, Inogen expects revenue in the range of $357.5 million to $358.5 million, which would be 15.9% to 16.2% more than in 2020.
Inogen shares dropped sharply on Jan. 10 after the announcement, closing at $29.54, down from a closing price of $32.48 on the previous trading day. The stock recovered some of the that loss the following day and was trading at around $31 late in the trading day on Jan. 11.
“Our results for the full year demonstrate the progress we are making to build and strengthen capabilities and operating disciplines, drive focused execution behind our new strategic imperatives, and selectively invest in our business to lay the foundation for more sustainable and durable performance and growth,” Nabil Shabshab, Inogen’s CEO, said in a company news release.
Despite the revenue growth, supply chain issues continue to limit Inogen’s ability to tap into its full potential.
According to Inogen, direct-to-consumer sales grew about 23.3% in the fourth quarter of 2021, to $33 million, but that growth was offset by limited product availability.
Domestic business-to-business sales dropped from $24.2 million in the fourth quarter of 2020 to just $10 million in the fourth quarter of 2021, as Inogen again cited limited product availability as a reason for the large drop-off.
Inogen said it is redesigning some of its components that require semiconductor chips in order to meet demand and deal with chip delays and shortages. Additionally, due to the ship shortages, Inogen temporarily suspended manufacturing operations on Jan. 3 at its Texas and California locations.
The company does not expect to furlough any employees as a result of the suspension, with Inogen aiming to restart manufacturing capabilities in late February.
Inogen said it is taking this time to cross-train employees and accelerate a move to the company’s new plant in Texas, which will allow for additional capacity once the supply chain stabilizes.