Sonoma Pharmaceuticals Announces Substantial Cost-Cutting Measures
March 12 2019 - 6:30PM
Specialty pharmaceutical company Sonoma Pharmaceuticals, Inc.
(Nasdaq: SNOA), today announced substantial cost-cutting measures,
including reductions to the company’s workforce and
management.
The measures come on the heels of Sonoma’s highest revenue
quarter ended December 31, 2018. Total revenues were $5.3 million
in the quarter ended December 31, 2018, the highest in company
history, an increase of 9% compared to the quarter ended December
31, 2017, and 7% quarter over quarter. The company reported a net
loss of $2.3 million during the quarter ended December 31, 2018
compared to $3.2 million for the quarter ended December 31,
2017.
The company continually evaluates and reduces expenses including
the current reductions in its workforce. The primary reductions
were in the company’s consulting expenses, manufacturing force and
manufacturing expenses. Sonoma’s cash and cash equivalents were
$6.5 million at December 31, 2018. While these cuts will include
certain one-time restructuring costs, the company expects to lower
costs in the 4th quarter of FY 2019 and going forward.
Combined with robust revenues, the company expects to improve its
overall operating results in FY2020. Management continues to
look for ways to grow revenue while managing expenses.
Under the direction of Bubba Sandford, who joined Sonoma as
Chief Executive Officer and Interim Chief Financial Officer on
December 11, 2018, the company undertook an extensive evaluation of
its processes and financials that identified several cost-reduction
measures. These measures were implemented immediately to reduce the
company’s cash burn and focus spending on the company’s growth.
Management expects that the cost eliminations will directly
impact the bottom line by reducing the company’s operating loss,
slowing the cash burn, reducing capital needs and create a clearer
path to increasing shareholder value.
“Our chief goal is to allocate our resources in a manner that
maximizes shareholder value,” commented Bubba Sandford, Sonoma’s
CEO. “While we are pleased with the direction of the 3rd quarterly
results, we are not yet finished with the process of accessing ways
to grow revenues, reduce expenses, and improve gross margins. This
process takes time and can be painful, and we recognize that
personnel reductions are difficult for our employees, their
families and the community. We value the dedicated team at Sonoma
for working hard towards this goal.”
About Sonoma Pharmaceuticals, Inc.Sonoma is a
specialty pharmaceutical company that develops and markets unique
and effective solutions for the treatment of dermatological
conditions and advanced tissue care. The company’s
products, which are sold throughout the United States and
internationally, have improved outcomes for more than five million
patients globally by reducing infections, itch, pain, scarring
and harmful inflammatory responses. The company's headquarters are
in Petaluma, California, with manufacturing operations in the
United States and Latin America. European marketing and sales
are headquartered in Roermond, Netherlands. More information can be
found at www.sonomapharma.com.
Forward-Looking StatementsExcept for historical
information herein, matters set forth in this press release
are forward-looking within the meaning of the “safe harbor”
provisions of the Private Securities Litigation Reform Act of 1995,
including statements about the commercial and technology progress
and future financial performance of Sonoma Pharmaceuticals,
Inc. and its subsidiaries (the “company”). These forward-looking
statements are identified by the use of words such as “preparing,”
“represent,” and “upcoming,” among others. Forward-looking
statements in this press release are subject to certain risks and
uncertainties inherent in the company’s business that could cause
actual results to vary, including such risks
that the company’s stock may be delisted, that regulatory
clinical and guideline developments may change, scientific
data may not be sufficient to meet regulatory standards or receipt
of required regulatory clearances or approvals, clinical
results may not be replicated in actual patient
settings, protection offered by the
company’s patents and patent applications may be challenged,
invalidated or circumvented by its competitors, the available
market for the company’s products will not be as
large as expected, the company’s products will not be able to
penetrate one or more targeted markets, revenues will not be
sufficient to meet the company’s cash needs, fund further
development and clinical studies, as well as uncertainties relative
to varying product formulations and a multitude of diverse
regulatory and marketing requirements in different countries and
municipalities, and other risks detailed from time to time in the
company’s filings with the Securities and Exchange Commission. The
company disclaims any obligation to update these forward-looking
statements, except as required by law.
Sonoma Pharmaceuticals™ is a trademark or registered trademark
of Sonoma Pharmaceuticals, Inc.
Media and Investor Contact:
Sonoma Pharmaceuticals, Inc.
Investor RelationsT: 707-559-7380 ir@sonomapharma.com
Sonoma Pharmaceuticals (NASDAQ:SNOA)
Historical Stock Chart
From Aug 2024 to Sep 2024
Sonoma Pharmaceuticals (NASDAQ:SNOA)
Historical Stock Chart
From Sep 2023 to Sep 2024