Despite More Than Double Q4 Sales, Chembio Diagnostics Posts Deeper Losses

Chembio Diagnostics Inc's CEMI Q4 sales increased 101% Y/Y to $20.6 million, beating the consensus of $13.55 million.
Net product sales increased 154% to $17.4 million. Government grant, license, and royalty, and R&D revenue totaled $3.2 million, down 6%.
Chembio posted a wider operating loss of $(13.97) million, compared to $(7.14) million a year ago.
Adjusted EPS of $(0.32) missed the consensus of (0.20). Reported EPS loss widened to $(0.47) from $(0.35) a year ago.
The gross product margin was negative (9%), compared to (7%), impacted by an unfavorable mix of average selling prices, increased labor costs, and an inventory write-down of $2.5 million.
Cash and cash equivalents totaled $28.8 million.
Also See: FDA Asks Chembio Additional Data On HIV-Syphilis Test For CLIA Waiver.
Revenues during 2021 did not meet the Company's expectations. The Company continued to incur significant expenses in pending legal matters, delayed achievement of milestones associated with government grant income, investments in inventory, and the continuing automation of manufacturing.
Price Action: CEMI shares are down 8.99% at $0.82 during the premarket session on the last check Friday.