Disposable products developer Merit Medical Systems reported financial results for the second quarter that saw the company's revenues fall 14.5%, with the company swinging to a net loss of $19.1 million.
For the period (end-June 30), Merit Medical posted revenue of $218.4 million, a 14.5% decline compared with sales of $255.5 million in the corresponding quarter of 2019. The company said the decline was due to the suspension of elective medical procedures by many of the company's customers in response to the COVID-19 pandemic.
Merit swung to a net loss under generally accepted accounting principles (GAAP) for the period of $19.1 million, compared with net income of $6.9 million in the second quarter of 2019.
Merit responded to the COVID-19 crisis by reducing headcount, implementing targeted furloughs, and reducing salaries for a number of employees, including all executive positions. The company has also reduced the number of R&D projects underway to focus on those of the highest priority in order to reach Merit's financial and competitive objectives, according to Chairman and CEO Fred Lampropoulos.
