IsoRay Inc‘s (ISR) first-quarter fiscal 2011 (ended September 30) loss per share of 4 cents was a penny below the Zacks Consensus Estimate, but matched the year-ago loss. Net loss (applicable to common shareholders) trimmed 3.8% year over year to $874,540 as lower operating expenses offset the revenue decline in the quarter.
The company, which makes the Cesium-131 internal radiation therapy (brachytherapy) isotope, posted product sales of roughly $1.33 million, down 4% year over year. The sales, however, beat the Zacks Consensus Estimate of $1 million.
IsoRay derived 93% of its first quarter revenues from the sales of Cesium-131 for the treatment of prostate cancer. The balance was generated from the product’s sales for lung, head and neck, ocular and colon cancer indications.
IsoRay is optimistic that expanded market traction of Cesium-131 coupled with ongoing clinical developments would spur growth moving forward. The company has initiated a clinical study to evaluate the use of Cesium-131 with surgery for use in non-small cell lung cancers (“NSCLC”). Moreover, IsoRay recently completed an initial feasibility study of Cesium-131 for the treatment of breast cancer.
Gross margin for the quarter improved to 16.2% from 15.9% a year-ago, helped by lower cost of sales. Operating expenses declined 2.7% year over year to $1.08 million. IsoRay exited the quarter with cash and cash equivalents of $1.02 million.
Washington-based IsoRay develops and markets isotope-based medical products and devices for the treatment of cancer and other malignant diseases. The company was recently awarded more than $526,000 in a federal grant. IsoRay will use the fund to advance the adoption of Cesium-131 in breast, brain and lung cancer.
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