Utah Medical Products, Inc. (UTMD) reported a decline in financial performance for the second quarter and first half of 2025, as reflected in its latest 10-Q filing. For the three months ended June 30, 2025, the company generated net sales of $9.95 million, a decrease of 4.3% from $10.40 million in the same period of 2024. The decline was more pronounced in the first half of the year, with revenues totaling $19.66 million, down 9.6% from $21.74 million in the prior year. The company's net income for the second quarter was $3.05 million, representing an 11.7% decrease compared to $3.45 million in the previous year, while net income for the first half fell 17.8% to $6.09 million from $7.41 million.
The decrease in revenue was largely attributed to a significant drop in sales to PendoTECH, which accounted for 71% of the decline in the second quarter and 86% in the first half. Sales to this major OEM customer fell from $511,000 in the second quarter of 2024 to $196,000 in the same period of 2025. Despite this, domestic sales showed some resilience, increasing slightly to $5.87 million in the second quarter of 2025 from $5.83 million in the prior year, driven by higher sales of the Filshie Clip System and other medical devices.
In terms of operational metrics, UTMD's gross profit margin contracted to 56.2% in the second quarter of 2025 from 60.1% in the same quarter of 2024, reflecting a less favorable product mix and lower sales volume. The company reported total operating expenses of $2.40 million for the second quarter, down from $2.82 million in the previous year, primarily due to reduced litigation costs. The company’s balance sheet remained strong, with total assets of $120.80 million as of June 30, 2025, slightly down from $122.54 million at the end of 2024. Cash and investments totaled $82.18 million, a decrease from $82.98 million, influenced by share repurchases and dividend payments.
Looking ahead, UTMD's management remains focused on several strategic initiatives, including leveraging its pre-qualified status to market high-pressure process control transducer configurations to biopharmaceutical manufacturers and continuing to integrate operations across its international subsidiaries. The company plans to introduce new products and maintain its commitment to returning cash to shareholders through dividends and share repurchases. However, management anticipates that sales to PendoTECH will continue to decline, projecting a decrease of approximately $2 million for the year compared to 2024. Overall, while UTMD faces challenges in revenue generation, it aims to sustain its operational performance and explore potential acquisition opportunities in the current economic climate.
About UTAH MEDICAL PRODUCTS INC
Utah Medical Products, Inc. designs and manufactures high-quality, safety-focused medical devices primarily for critical care, obstetrics, neonatal intensive care, gynecology, and urology. Its core offerings include fetal monitoring accessories, neonatal catheters, gynecological electrosurgical tools, and contraceptive devices like the Filshie clip. The company serves global markets through direct sales, distributors, and OEM partnerships, emphasizing clinical utility, reliability, and regulatory compliance.
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