Milestone Scientific Inc., a leading developer of computerized drug delivery instruments, has reported a significant increase in domestic dental sales for the third quarter of 2023. The company recorded a 45% spike in sales, which can be attributed to the success of their direct sales model through a new online store. The implementation of this strategy has allowed Milestone Scientific to establish a closer and more direct relationship with their customers, resulting in better-than-expected outcomes.
One of the key factors contributing to the boost in dental sales is the introduction of the STA Single Tooth Anesthesia System® (STA) and handpieces, which are being sold and shipped through the new online portal. This approach has not only increased sales but has also led to an improvement in gross profit margins. The gross profit margin for the third quarter of 2023 was 73%, compared to 66% for the same period last year.
Milestone Scientific’s medical division has also experienced growth, particularly in sales to a prominent hospital system and pain management clinics. The CompuFlo® Epidural System, which provides painless and precise injections, has gained traction. The company has expanded its adoption in various medical settings, including ambulatory surgery centers. Furthermore, Milestone Scientific is actively working towards advancing its reimbursement strategy for the CompuFlo® Epidural System, aiming to secure broader coverage and support for clinicians utilizing the technology.
Despite challenges related to the timing and size of orders from international distributors, Milestone Scientific remains confident in the resumption of international sales growth. With the success achieved in the domestic market, the company plans to focus on expanding its penetration in international markets. The addition of new international partners in the future is expected to support Milestone Scientific’s global expansion strategy.
Over the third quarter of 2023, Milestone Scientific reported revenues of $2.1 million, with a net loss of approximately $1.5 million. Although there was a decrease in international dental sales, the increase in domestic dental sales and the implementation of the new direct sales model contributed to an overall improvement in gross profit and reduction in operating loss.
Looking at the nine-month period ending September 30, 2023, revenues reached approximately $7.6 million, representing a 15% increase compared to the same period last year. Domestic dental sales saw a significant boost of $1.3 million, partially offsetting the decrease in international dental sales.
Milestone Scientific’s financial position remains robust, with approximately $4.6 million in cash, cash equivalents, and short-term securities as of September 30, 2023. The company also reported working capital of approximately $6.7 million, showcasing its ability to navigate the market and invest in future growth opportunities.
With the positive momentum gained from increased dental sales, the successful implementation of the CompuFlo® Epidural System, and progress in advancing reimbursement strategies, Milestone Scientific is poised for further growth and expansion both domestically and internationally. The company’s focus on maximizing profitability through a streamlined operating structure positions it for long-term success in the medical and dental industries.
