Home care oxygen therapy provider Inogen Inc INGN recently announced that it is postponing its fourth quarter and fiscal 2014 earnings release and conference call, which had been initially scheduled for Mar 12, 2015.
The Goleta, CA-based company, which offers innovative respiratory products for use in the homecare setting, revealed that during the first quarter of 2015 certain potential accounting matters were discovered by management, which prompted an internal investigation. The investigation is being led by the Audit Committee, with the assistance of independent advisors.
The Audit Committee is investigating whether there was any violation of the company's accounting policies associated with these potential accounting matters. The Committee has not yet reached any conclusion, and the company cannot predict the outcome of the investigation or when it will be completed.
As a result, Inogen has postponed its fourth quarter and fiscal 2014 earnings release and will announce results as soon as feasible following the completion of the Audit Committee's investigation.
Inogen, however, remains confident about its strategy, top-line growth and profitability and does not believe that these matters will impact the company's previously stated outlook for fiscal 2015 or its long-term business plan.
Per the company’s third-quarter earnings release on Nov 11, 2014, the total revenue guidance for 2015 ranges from $130–$135 million. This represents roughly 20%–25% growth over the 2014 guidance mid-point of $108 million.
Inogen has a unique direct-to-customer (DTC) business model, which has provided it a leading position in the oxygen therapy market. Management forecasts that sales in the 2014-15 period will be driven by expansion of the DTC network, increasing B2B distribution and growing physician referrals.
We believe that Inogen’s expanding product portfolio and growing patient base will drive significant top-line growth in the long run.
Zacks Rank
Currently, Inogen sports a Zacks Rank #1 (Strong Buy). Other well-performing stocks in the medical instruments industry include Abiomed ABMD, Edward Lifesciences Corp EW and Fluidigm Corp FLDM. While Abiomed carries the same rank as Inogen, both Edward Lifesciences and Fluidigm hold a Zacks Rank #2 (Buy).
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