Atrion Corporation has recently released its 10-Q report, revealing a focus on developing, manufacturing, and selling products for fluid delivery, cardiovascular, and ophthalmic applications. The company's fluid delivery products include valves for various medical applications in anesthesia and oncology, while its cardiovascular products consist of systems for delivering fluids and medications, as well as silicone vessel loops and inflation devices for heart surgery. In the ophthalmic market, Atrion offers balloon catheters for treating nasolacrimal duct obstruction. Additionally, the company manufactures products for safe needle and scalpel blade containment, inflation systems and valves used in marine and aviation safety products, and components used in inflatable survival products and structures.
In the first quarter of 2024, Atrion reported revenues of $47.3 million, representing an 18% increase from the same period in 2023. However, the operating income decreased by 30% to $3.1 million, and the net income decreased by 20% to $2.8 million compared to the first quarter of 2023. Revenues from the cardiovascular, fluid delivery, ophthalmology, and other product lines increased by 27.8%, 11.1%, 8.6%, and 17.1% respectively, compared to the first quarter of 2023.
Cost of goods sold for the first quarter of 2024 was $35.0 million, a 40.4% increase from the first quarter of 2023, primarily due to increased revenue and higher manufacturing costs, including a $2.3 million one-time inventory write-off. Gross profit for the first quarter of 2024 was $12.4 million, 18.1% lower than the comparable 2023 period. Operating expenses were $9.2 million, $1.4 million lower than the first quarter of 2023.
Atrion had a total of $18.7 million in cash and cash equivalents, short-term investments, and long-term investments as of March 31, 2024, compared to $14.4 million at December 31, 2023. The company reported cash flows from operating activities of $11.5 million for the first quarter of 2024, primarily comprised of net income plus the net effect of non-cash expenses, a decrease in inventory, and an increase in accounts receivable.
The impact of COVID-19 on Atrion's business has largely diminished, but uncertainties continue, particularly around disruptions to the global economy, supply chains, and healthcare systems. Atrion believes that its $18.7 million in cash, cash equivalents, short-term investments, and long-term investments, along with cash flows from operations and available borrowings of up to $25.0 million under its credit facility, will be sufficient to fund its cash requirements for at least the foreseeable future. The market has reacted to these announcements by moving the company's shares 4.1% to a price of $445.35. If you want to know more, read the company's complete 10-Q report here.
