Utah Medical Products Reports Q2 Decline

Utah Medical Products (NASDAQ:UTMD), a developer and manufacturer of specialty medical devices for women’s health, neonatal, and critical care markets, released its second quarter 2025 earnings on July 24, 2025. The company reported a 4.3% decrease in GAAP revenue compared to the prior year, as expected, in line with management’s projections. Revenue for the period was $9.95 million, largely affected by the anticipated drop in sales to its biggest biopharma equipment customer, PendoTECH. Diluted earnings per share (GAAP) came in at $0.94. Net income (GAAP) fell to $3.05 million. Both gross and net margins contracted from the previous year, mainly due to higher costs and shifts in product mix, particularly at Irish operations. Domestic direct sales increased significantly year over year, but ongoing weakness in international distribution and continued, though reduced, legal expense burden. Overall, the quarter matched company forecasts with notable pressures in international segments and gross margins.Utah Medical Products specializes in medical technology for women’s reproductive health, neonatal care, and surgical applications. It develops and manufactures products like the Filshie Clip System, an implantable contraceptive device, and the Intran Plus intrauterine pressure catheter. The company’s business spans direct sales and global distributors, with operations and manufacturing in the US, UK, Ireland, Australia, and Canada.In recent years, its focus has included product innovation, strong regulatory compliance, and the expansion of international business. Success hinges on sustaining new product development, consistent distribution performance, and navigating regulatory requirements. The ability to defend against legal risk—mainly related to the Filshie Clip System—and to offset declining OEM (original equipment manufacturer) sales, especially following the reduction in orders from PendoTECH, remains crucial, as reflected in PendoTECH’s 71% contribution to the decline in Q2 2025 sales and 86% in 1H 2025 sales.Continue readingWeiter zum vollständigen Artikel bei MotleyFool Weiter zum vollständigen Artikel bei MotleyFool