CAS Medical Systems, Inc. (NASDAQ: CASM) (“CASMED”) is a
leading developer of innovative, non-invasive vital signs monitoring
technologies and products that deliver accurate, reliable patient data. With a
reputation for consistently marketing superior quality products that utilize
the industry’s most advanced technology, the company has remained a trusted
resource for doctors and clinicians around the globe for more than three
decades. CASMED’s product portfolio, which it offers to hospitals, emergency medical
services, home care providers and original equipment manufacturers, includes
blood pressure measurement technology, vital signs monitoring technology,
neonatal intensive care supplies and its flagship FORE-SIGHT® absolute tissue
oximeters.
In the first quarter of 2015, CASMED highlighted the market
potential of its proprietary FORE-SIGHT offerings by recording a 19 percent
year-over-year increase in sales for the product line, including a 17 percent
increase in disposable sensor sales. These results marked the 20th consecutive
quarter of double-digit growth for the company’s FORE-SIGHT meters, as well as
the first time in its history that more than 50 percent of total revenues were
attributed to its flagship brand.
“This is the first quarter in which revenues from FORE-SIGHT
sensors represented more than 50 percent of total revenues, which is a
significant milestone and reflective of the incredible transition we have made
over the past few years from a capital equipment business to a disposables
company,” Thomas M. Patton, president and chief executive officer of CASMED,
stated in a news release. “This transition has been a key driver in improving
gross margin, which increased by approximately 500 basis points in the first
quarter over the prior year.”
By rapidly expanding its presence in the disposable medical
supplies market, CASMED should be in a strong position to continue posting
improved financial results moving forward. According to a report by Becker’s
ASC Review, healthcare organizations will continue turning to disposables in
the years to come following heightened pressure from federal and accreditation
organizations to prevent patient harm. As a result, domestic demand for
disposable medical supplies is expected to grow by more than four percent
annually, climbing above $49 billion by 2018.
In the months to come, look for CASMED to build on its
recent market progress through the impending launch of its FORE-SIGHT ELITE
product for pediatric and neonatal patients. Through this release, in addition
to planned expansion of its existing sales force, the company will be in a
formidable position to continue pushing toward profitability in future
quarters. For prospective shareholders, these results could provide a
formidable platform upon which CASMED could promote sustainable returns in the
future.
For more information, visit www.casmed.com
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