The wearable health devices sector has managed to grow at a fairly brisk pace in recent times and one of the companies from the sector which you could consider checking out is Helo Corp (OTCMKTS:HLOC). The company was in the news yesterday after it announced its financial results for the second fiscal quarter of 2022.
Trading Data
On Wednesday, HLOC stock ended flat at $1.0800 with 900 shares, compared to volume of 1.75K shares. The stock moved within a range of $1.0800 – 1.0800 after opening trade at $1.1600.
Helo Corp Announces Second Quarter Results
The numbers did not make for particularly great reading as revenues nosedived by as much as 83% year on year to hit $3.5 million. In the prior year period, the revenues had been $20 million. The gross margin for the quarter stood at 5% and that was again a major decline from the gross margin of 55% in the prior year period.
On the other hand, the net operating margin for the quarter had been negative 129% and that was again a poor return when compared to the operating margin of 16% in the prior year period.
Sean McVeigh, who is the company’s Chief Executive Officer, noted that the restrictions caused by the coronavirus pandemic continued to have an impact on its operations. It had made it difficult to travel internationally and conduct face-to-face meetings, both of which are important factors with regards to pushing sales.
Key Quote
“The second quarter was a challenge for us,” said Sean McVeigh, Chief Executive Officer. “COVID-19 restrictions on international travel and in-person meetings, which are particularly important to our sales process, have and will likely continue to negatively impact our business, especially in geographic regions where we achieved strong sales last year. Consequently, we are evaluating our business model, looking at all aspects of our organization to optimize our spending, as well as adapting our sales processes to recover revenues in our current environment. In addition, we believe we have strong products in the pipeline.”
Technical Data
HLOC stock is below the 20-Day and 50-Day Moving averages of $1.57 and $2.11 respectively. Moreover, the stock is trading below the 200-Day moving average of $2.61. The stock is down 69% over the past 6-month.
