SenesTech Q1 Revenue Misses by 22%, Net Loss Widens on Transition Costs
SNES sits 18% above its 52-week low of $1.41.
Summary
SenesTech reported Q1 revenue of $493,000, missing the single analyst estimate of $632,000 by approximately 22%. The company's net loss widened to $2.06 million, also missing the $1.74 million estimate. The widened loss was attributed to severance and legal costs related to a strategic transition, which follows the recent appointment of Michael Edell as CEO on May 7, replacing Joel L. Fruendt. While the company achieved a record gross margin of 68.6% and saw strong growth in direct-to-consumer (42%), subscription (44%), and B2B (57%) channels, the overall top and bottom-line misses against expectations are a significant negative for this micro-cap company. Traders will be watching for market reaction to these misses, despite the underlying operational positives and the explanation for the increased costs.
At the time of this announcement, SNES was trading at $1.66 on NASDAQ in the Life Sciences sector, with a market capitalization of approximately $8.8M. The 52-week trading range was $1.41 to $6.24. This news item was assessed with negative market sentiment and an importance score of 8 out of 10. Source: Reuters.