The medical devices industry has grown at a rapid rate over the course of the past few years and there are now many companies that operate in the sector. Hence, it might be said that investors may often be a bit spoilt for choice when it comes to choosing the companies to invest in.
Trading Data
On Thursday, ECIA stock slid 15.21% to $0.53 with more than 28K shares, compared to a volume of 2.3K shares. The stock moved within a range of $0.5155 – 0.6001 after opening trade at $0.60.
About The Company
A company that may be looked into at this point is Encision Inc (OTCMKTS:ECIA), which is involved in the designing and development of surgical instruments which are patented. In addition to that, the company is also responsible for the marketing and selling of the same products in the United States. Some of the products offered by Encision include electrode monitoring surgical instruments as well as monitors, both of which help in boosting the safety level for patients.
In addition to that, Encision also manufactures a range of handles which are then used in laparoscopic procedures. The products are sold by way of direct sales and also through independent sales agents. The company had been established back in 1991.
Encision Reports Fourth Quarter Fiscal Year 2022 Results
However, the company’s stock was in a free fall on Thursday and ended up with a decline of as much as 15% as a consequence. The company announced its financial results for the fourth fiscal quarter of 2022 yesterday and it seems that investors were not quite impressed with the performance in the period that ended on March 31, 2022. It may be a good idea at this point to take a look at some of the highlights of the financial results.
The company revealed that its net revenues for the period came in at $1.60 million and on top of that, the net losses for the fourth quarter stood at $402,000. In the prior-year period, Encision had generated net revenues to the tune of $2.15 million and had actually generated a net income of $116,000. Hence, it could be said that on a year-on-year basis, the performance was considerably poorer. The selloff in the stock was perhaps not much of a surprise and it is going to be interesting to see if the stock can arrest the slide today.
Key Quote
“The fourth quarter presented significant challenges for Encision,” said Gregory Trudel, President and CEO of Encision Inc. “We saw product revenue decrease by 18% and service revenue decrease by 84% compared to the fourth quarter of fiscal year 2021. The COVID wave continues to disrupt surgical procedures and we encountered a downward swing in product revenues.
Technical Data
ECIA stock is trading below the 20-Day and 50-Day Moving averages of $0.68 and $0.87 respectively. Moreover, the stock is trading below the 200-Day moving average of $1.15.
