Urologix, which makes products to treat enlarged prostate, or benign prostatic hyperplasia, reported that its fiscal third-quarter revenue fell 17 percent because of “reduced order volume in direct, mobile and third-party mobile distribution channels.”
The Plymouth, Minnesota-based company said that revenue was $2.98 million, down from $3.59 million a year ago. The loss widened to $983,000 or 7 cents per diluted share, from $597,000 or 4 cents per diluted share. The company’s Targis System uses microwave energy to destroy enlarged prostate tissue as an alternative to pharmaceutical treatment.
“There was a marked slowdown in procedure volume at the beginning of the calendar year, which many of our customers attributed to the resetting of annual deductibles and continuing economic conditions,” said Stryker Warren Jr., CEO, in a statement highlighting this current business news.
A new marketing campaign resulted in an increase in operating expenses, but Warren credited the “Think Outside the Pillbox!” campaign for a recovery in the company’s mobile procedure volume, a recovery that the company began to see in March.
The statement noted that “there has been no material difference in the percentage of overall catheter revenue derived from our various sales channels compared with the second quarter of fiscal year 2011.” However, Warren had earlier described the second fiscal-quarter results as “disappointing.”
The company has $3.8 million in cash and no debt.
