Pediatric Guide Appliance Line Growth
Total arches shipped grew 87% from 1,996 in the same period last year to 3,736 this year. Product revenue for the quarter was up 8% due to lower price points on certain pediatric products.
SCN Acquisition Potential
Acquisition of the Sleep Center of Nevada is expected to close in the next month or two, potentially adding diagnostics and treatment revenue. SCN sees approximately 3,000 sleep patients a month.
Strategic Shift to Sleep Medical Providers
Transitioning to a model of creating strategic alliances or acquiring sleep medical providers to drive sales and diversify revenue.
Cost Reduction Initiatives
Sales and marketing expenses decreased from $700,000 to $400,000, and total operating expenses decreased by 5% compared to last year due to cost-cutting initiatives.