Recently Vericel Corp (NASDAQ:VCEL) released its financial results for the fourth quarter as well as the full year which ended on December 31, 2017. In the fourth quarter total net revenues rose by 41% to reach a figure of $23.4 million from a figure of $16.5 million in a similar quarter the previous year. This was not inclusive of license revenue though. Also in the same quarter net revenue rose by 34% to reach a figure of $22.2 million.
“We had record fourth quarter revenues and achieved both positive operating income and net income for the quarter, an important milestone for the company. Our record fourth quarter revenues represent the third straight quarter of 30% or higher revenue growth,” the president and chief executive officer of Vericel, Nick Colangelo, said.
In the fourth quarter gross margins increased by 64% compared to an increase of 54% for a similar period the year prior. And while in 2016’s fourth quarter Vericel had incurred an operating loss amounting to $5.9 million, in 2017’s Q4 the cell therapy firm returned $1.2 million in operating income. Net income for the same period was $0.3 million which translated to one cent per share. In 2016’s fourth quarter Vericel recorded $6.2 million in net loss and this amount to a per share loss of 34 cents.
Cash reserves of Vericel also rose in 2017’s fourth quarter relative to the fourth quarter of 2016. While they amounted to $23 million in 2016’s Q4 the figure was $26.9 million in 2017’s Q4.
Total net revenue
With regards to the full year results total net revenue of Vericel rose by 18% to hit $63.9 million. During the previous year the total net revenue was $54.4 million. In 2017 the gross margins were 53% while in 2016 they were 48%.
The operating loss for Vericel reduced last year compared to the year 2016. In 2017 the operating loss was $15 million while in 2016 it was $19.2 million. With regards to the net loss the figure was $17.3 million last year or 52 cents per share while in 2016 it was $19.6 million.