Milestone Scientific reports lower 2Q revenue due to pandemic, but is expanding its sales and development pipeline

Milestone Scientific Inc (NYSEAMERICAN:MLSS) told investors that its sales and business development pipeline was expanding, despite the challenges posed by the coronavirus (COVID-19) pandemic, as it reported its second-quarter results. Milestone is a medical device research and development (R&D) firm, which specializes in dynamic pressure sensing, allowing medics to know what the pressure is at the tip of a needle at any time. READ: Milestone Scientific names medical device expert Jan Adriaan Haverhals CEO of its dental subsidiary The group's main focus remains the commercialization of its CompuFlo Epidural System, which it believes will become the new standard of care, and the firm highlighted that it is now in late-stage discussions with a number of premier hospitals in the US. The addition to its tech (for catheter patients) of the CathCheck technology, is also gaining traction, Milestone added, especially as it allows for minimal contact between the patient and provider, which is especially important during the current COVID-19 pandemic. Milestone's revenues in the three months to June 30. 2020, were hit, however, due to reduced hours and closings of dental offices throughout the US and the rest of the world due to the pandemic, affecting the firm's wand product, which makes injections less painful. Overall, revenue for the quarter stood at $167,000 compared to $2.2 million in the same period of 2019, with dental revenues decreasing by around $2.1 million. Gross profit for the three months was $112,000, or 67% of revenue, versus around $1.5 million, or 68% of revenue for the second quarter of 2019. The group's net loss came in at approximately $3.1 million, up from a net loss of $1 million in the same period of 2019. "As anticipated, the global pandemic had a negative impact on revenue for the second quarter due to reduced hours and closings of dental offices throughout the country and the rest of the world," Leonard Osser, interim CEO of Milestone Scientific said in the results statement. "Nevertheless, we are encouraged by the steady reopening of dental practices in the US and Europe. In the meantime, we have utilized this period to significantly enhance our marketing activities, to better educate dentists on how The Wand can help dentists rebuild their practice by providing a safer and more pleasant environment for patients and staff," he added. Osser noted the firm ended the quarter with over $16.6 million of cash and cash equivalents. "(We) believe the strength of our balance sheet provides us with a substantial runway to help mitigate the risks related to COVID-19, as well as additional resources to accelerate sales and marketing activities around the CompuFlo Epidural System," he said. Contact the author at giles@proactiveinvestors.com