Electromed, Inc. Delivers Continued Growth in Fiscal 2027 First Quarter
16th consecutive quarter of year-over-year revenue and operating income growth
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Electromed, Inc. (“Electromed”) (NYSE American: ELMD), a leader in innovative airway clearance technologies, today announced financial results for the three months ended September 30, 2026 (“Q1 FY 2027”).
Q1 FY 2027 Company Highlights
- Net revenues were $18.7 million in Q1 FY 2027, a 10.6% increase from $16.9 million in the first quarter of the prior fiscal year, driven by a 17.6% increase in the core homecare market.
- Operating income increased to $3.5 million, a 30.7% increase from the first quarter of the prior fiscal year, and 18.7% of net revenues.
- Net income was $2.8 million, or $0.32 per diluted share, representing an increase of 29.3%, compared to $2.1 million, or $0.25 per diluted share in the first quarter of the prior fiscal year.
“We delivered our 16th consecutive quarter of year-over-year revenue and operating income growth, with double-digit revenue growth, a 30.7% increase in operating income and an 80.0% gross margin—demonstrating the strength of our direct-to-patient model and operating leverage. We also returned $4.3 million to shareholders through share repurchases while remaining debt-free. With a strong balance sheet and high-performing sales and fulfillment teams, Electromed is well positioned to bring SmartVest® therapy to more patients who need to breathe easier,” said Jim Cunniff, President and Chief Executive Officer.
Q1 FY 2027 Results
All amounts below are for the three months ended September 30, 2026, and compare to the three months ended September 30, 2025 (“Q1 FY 2026”).
Net revenues grew 10.6% to $18.7 million, from $16.9 million.
Revenue in our direct homecare business increased by 17.6% to $17.5 million, from $14.9 million. The increase in revenue was primarily due to an increase in sales representatives and increased sales representative productivity. Throughout Q1 FY 2027, we averaged 63 homecare field sales representatives. The annualized homecare revenue per weighted average direct sales representative in Q1 FY 2027 was $1,109,000, within Electromed’s target range for the year of $1,050,000 to $1,150,000.
Non-homecare revenue was $1.2 million. Hospital revenue was $0.7 million, a decrease of 31.6%. Homecare distributor revenue was $0.4 million, a decrease of 55.9%. Other revenue was $0.1 million, a decrease of 23.0%.
Gross profit increased year-over-year to $14.9 million or 80.0% of net revenues from $13.2 million or 78.1% of net revenues. The increase in gross profit was primarily a result of increased overall revenue and the increase in gross profit percentage was due to revenue mix.
Selling, general and administrative (“SG&A”) expenses were $11.2 million, representing an increase of $0.9 million, or 8.6%. The increase in the current period was primarily due to increased salaries and incentive compensation, travel and meals related to the higher average sales representative headcount and higher overall compensation costs.
Operating income was $3.5 million or 18.7% of net revenues, compared to $2.7 million, or 15.8% of net revenues. The 30.7% increase in operating income was primarily due to the increases in revenue and gross profit.
Net income increased by 29.3% to $2.8 million, or $0.32 per diluted share, compared to $2.1 million, or $0.25 per diluted share.
As of September 30, 2026, Electromed had $15.9 million in cash, $30.3 million in accounts receivable and no debt, achieving a working capital of $44.9 million and total shareholders’ equity of $52.5 million. The cash balance reflects a decrease of $4.6 million for the three months ended September 30, 2026, compared to a decrease in cash of $1.2 million in the three months ended September 30, 2025. The decrease in cash for the three months ended September 30, 2026, was driven primarily by share repurchases of $4.3 million of Electromed common stock.
Conference Call and Webcast Information
The conference call with members of Electromed management will be held at 5:00 p.m. Eastern Time on Tuesday, November 10, 2026.
Interested parties may participate in the call by dialing (877) 407-3982 (Domestic) or (201) 493-6780 (International).
The live conference call webcast will be accessible in the Investor Relations section of Electromed’s website and directly via the following link: https://viavid.webcasts.com/starthere.jsp?ei=1778024&tp_key=72949ff6b5
For those who cannot listen to the live broadcast, a replay will be available by dialing (844) 512-2921 (Domestic) or (412) 317-6671 (International) and referencing the Access ID 13763053. Additionally, an online replay of the webcast will be available for one year in the Investor Relations section of Electromed’s web site at: https://investors.smartvest.com/events-and-presentations/default.aspx
About Electromed, Inc.
Electromed, Inc. manufactures, markets, and sells products that provide airway clearance therapy, including the SmartVest® Airway Clearance System, to patients with compromised pulmonary function. It is headquartered in New Prague, Minnesota, and was founded in 1992. Further information about Electromed can be found at www.smartvest.com.
Cautionary Statements
Certain statements in this press release constitute forward-looking statements as defined in the U.S. Private Securities Litigation Reform Act of 1995. Forward-looking statements in this press release include, but are not limited to, statements regarding our targeted annualized homecare revenue per sales representative, our growth prospects and ability to bring SmartVest® therapy to more patients, our capital allocation, including share repurchases, and our liquidity and financial position. Forward-looking statements can generally be identified by words such as “anticipate,” “believe,” “continue,” “expect,” “may,” “plan,” “positioned,” “potential,” “target,” “should,” “will,” and similar expressions, including the negative of these terms, but they are not the exclusive means of identifying such statements. Forward-looking statements cannot be guaranteed, and actual results may vary materially due to the uncertainties and risks, known or unknown, associated with such statements. Examples of risks and uncertainties for Electromed include, but are not limited to, our ability to obtain and maintain reimbursement from Medicare, Medicaid, or private insurance payers for our products; component or raw material shortages, changes to lead times or significant price increases, inflationary trends in electronic components, and uncertainty related to trade regulations (including, but not limited to, changes to tariffs); adverse changes to state and federal health care regulations; our ability to maintain regulatory compliance and to gain future regulatory approvals and clearances; entry of new competitors including new drug or pharmaceutical discoveries; adverse economic and business conditions or intense competition; our ability to attract, train and retain personnel and remain competitive with wage inflation; rising energy costs and geopolitical conflicts; technical problems with our research and products; the risks associated with cyberattacks, data breaches, computer viruses and other similar security threats; changes affecting the medical device industry; our ability to develop new sales channels for our products such as the hospital or homecare distributor channels; adverse international health care regulation impacting current international business; our ability to renew our line of credit or obtain additional credit as necessary; and our ability to protect and expand our intellectual property portfolio, as well as other factors we may describe from time to time in Electromed’s reports filed with the Securities and Exchange Commission (including Electromed’s most recent Annual Report on Form 10-K, as amended from time to time, and subsequent Quarterly Reports on Form 10-Q and Current Reports on Form 8-K). Investors should not consider any list of such factors to be an exhaustive statement of all the risks, uncertainties or potentially inaccurate assumptions investors should take into account when making investment decisions. Shareholders and other readers should not place undue reliance on “forward-looking statements,” as such statements speak only as of the date of this press release. We undertake no obligation to update them in light of new information or future events.
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Electromed, Inc.
Condensed Balance Sheets |
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September 30, |
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June 30, 2026 |
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(Unaudited) |
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Assets |
|
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|
|
|
|
|
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Current Assets |
|
|
|
|
|
|
|
|
Cash and cash equivalents |
|
$ |
15,875,000 |
|
|
$ |
20,450,000 |
|
Accounts receivable (net of allowance for credit losses of $75,000 and $45,000 as of September 30, 2026, and June 30, 2026, respectively) |
|
|
30,267,000 |
|
|
|
29,805,000 |
|
Contract assets |
|
|
1,026,000 |
|
|
|
1,094,000 |
|
Inventories |
|
|
3,811,000 |
|
|
|
3,681,000 |
|
Income tax receivable |
|
|
405,000 |
|
|
|
1,168,000 |
|
Prepaid expenses and other current assets |
|
|
810,000 |
|
|
|
1,170,000 |
|
Total current assets |
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|
52,194,000 |
|
|
|
57,368,000 |
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Property and equipment, net |
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5,168,000 |
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5,214,000 |
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Finite-life intangible assets, net |
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|
379,000 |
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|
379,000 |
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Other assets |
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1,317,000 |
|
|
|
1,270,000 |
|
Deferred income taxes |
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|
2,036,000 |
|
|
|
2,036,000 |
|
Total assets |
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$ |
61,094,000 |
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|
$ |
66,267,000 |
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Liabilities and Shareholders’ Equity |
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Current Liabilities |
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Accounts payable |
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$ |
2,347,000 |
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|
$ |
2,643,000 |
|
Accrued compensation |
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|
2,830,000 |
|
|
|
6,071,000 |
|
Warranty reserve, current portion |
|
|
534,000 |
|
|
|
1,899,000 |
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Other accrued liabilities |
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|
1,550,000 |
|
|
|
1,609,000 |
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Total current liabilities |
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|
7,261,000 |
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|
12,222,000 |
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Long-term warranty reserve |
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1,310,000 |
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|
– |
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Other long-term liabilities |
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50,000 |
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|
66,000 |
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Total liabilities |
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8,621,000 |
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12,288,000 |
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Shareholders’ Equity |
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Common stock, $0.01 par value per share, 13,000,000 shares authorized; 8,236,585 and 8,366,163 shares issued and outstanding, as of September 30, 2026, and June 30, 2026, respectively |
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82,000 |
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84,000 |
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Additional paid-in capital |
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25,421,000 |
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25,331,000 |
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Retained earnings |
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26,970,000 |
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28,564,000 |
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Total shareholders’ equity |
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52,473,000 |
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|
53,979,000 |
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Total liabilities and shareholders’ equity |
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$ |
61,094,000 |
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$ |
66,267,000 |
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Electromed, Inc.
Condensed Statements of Operations (Unaudited) |
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Three Months Ended |
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September 30, |
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2026 |
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2025 |
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Net revenues |
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$ |
18,682,000 |
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$ |
16,887,000 |
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Cost of revenues |
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3,745,000 |
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|
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3,690,000 |
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Gross profit |
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14,937,000 |
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|
|
13,197,000 |
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|
|
|
|
|
|
|
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Operating expenses |
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|
|
|
|
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Selling, general and administrative |
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11,171,000 |
|
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10,286,000 |
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Research and development |
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|
277,000 |
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|
241,000 |
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Total operating expenses |
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11,448,000 |
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|
10,527,000 |
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Operating income |
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3,489,000 |
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|
2,670,000 |
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Interest income, net |
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148,000 |
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|
134,000 |
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Income before income taxes |
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3,637,000 |
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|
|
2,804,000 |
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|
|
|
|
|
|
|
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Income tax expense |
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|
876,000 |
|
|
|
668,000 |
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|
|
|
|
|
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Net income |
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$ |
2,761,000 |
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$ |
2,136,000 |
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Earnings per share: |
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Basic |
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$ |
0.33 |
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|
$ |
0.26 |
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|
|
|
|
|
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Diluted |
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$ |
0.32 |
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|
$ |
0.25 |
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|
|
|
|
|
|
|
|
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Weighted-average common shares outstanding: |
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|
|
|
|
|
|
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Basic |
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8,307,125 |
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|
|
8,322,782 |
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Diluted |
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|
8,761,404 |
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|
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8,681,703 |
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Electromed, Inc.
Condensed Statements of Cash Flows (Unaudited) |
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Three Months Ended September 30, |
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2026 |
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2025 |
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Cash Flows From Operating Activities |
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Net income |
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$ |
2,761,000 |
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|
$ |
2,136,000 |
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Adjustments to reconcile net income to net cash provided by operating activities: |
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Depreciation |
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217,000 |
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|
214,000 |
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Amortization |
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49,000 |
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45,000 |
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Share-based compensation expense |
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|
435,000 |
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|
458,000 |
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Changes in operating assets and liabilities: |
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|
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|
|
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Accounts receivable |
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(462,000 |
) |
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|
(96,000 |
) |
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Contract assets |
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|
68,000 |
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|
|
(134,000 |
) |
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Inventories |
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(154,000 |
) |
|
|
(515,000 |
) |
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Prepaid expenses and other assets |
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|
284,000 |
|
|
|
(241,000 |
) |
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Income tax receivable, net |
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|
763,000 |
|
|
|
202,000 |
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Accounts payable and accrued liabilities |
|
|
(347,000 |
) |
|
|
448,000 |
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|
Accrued compensation |
|
|
(3,241,000 |
) |
|
|
(2,348,000 |
) |
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Net cash provided by operating activities |
|
|
373,000 |
|
|
|
169,000 |
|
|
|
|
|
|
|
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|
|
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Cash Flows From Investing Activities |
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|
|
|
|
|
|
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Expenditures for property and equipment |
|
|
(165,000 |
) |
|
|
(252,000 |
) |
|
Expenditures for finite-life intangible assets |
|
|
(37,000 |
) |
|
|
(15,000 |
) |
|
Net cash used for investing activities |
|
|
(202,000 |
) |
|
|
(267,000 |
) |
|
|
|
|
|
|
|
|
|
|
|
Cash Flows From Financing Activities |
|
|
|
|
|
|
|
|
|
Issuance of common stock upon exercise of options |
|
|
48,000 |
|
|
|
156,000 |
|
|
Taxes paid on net share settlement of stock awards |
|
|
(466,000 |
) |
|
|
(229,000 |
) |
|
Repurchase of common stock |
|
|
(4,328,000 |
) |
|
|
(1,003,000 |
) |
|
Net cash used for financing activities |
|
|
(4,746,000 |
) |
|
|
(1,076,000 |
) |
|
Net decrease in cash and cash equivalents |
|
|
(4,575,000 |
) |
|
|
(1,174,000 |
) |
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Cash and cash equivalents |
|
|
|
|
|
|
|
|
|
Beginning of period |
|
|
20,450,000 |
|
|
|
15,287,000 |
|
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End of period |
|
$ |
15,875,000 |
|
|
$ |
14,113,000 |
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