Inogen off to 'strong start' in 2014

GOLETA, Calif. - The first quarter of the year is seasonably slow for many public companies, but not this year, not for Inogen.

The company, which began trading in February, reported revenues of $23.6 million for the first quarter ended March 31, 2014, a 50.1% increase over the same period last year. Net income was $900,000 vs. $700,000.

“Historically, the first quarter is the slowest quarter,” said Ray Huggenberger, president and CEO. “We're pleased to start with such a strong performance.”

Inogen reported sales revenues were $14.9 million, a 67% increase; and rental revenues were $8.8 million, a 28.1% increase.

That last data point may shed some light on why Inogen's numbers were so good for the first quarter. The company believed its new focus on increasing direct-to-consumer sales revenues would come at the expense of rental revenues, but so far, that hasn't played out.

“I am particularly pleased that we have been able to simultaneously increase direct-to-consumer sales, which is our highest margin sales revenue segment, by more than 90% year over year, while also delivering growth in insurance rental units of nearly 50%,” Huggenberger said. “This is more evidence that our sales and marketing investments and process improvements are working.”

It's too early to tell, however, whether Inogen's first quarter earnings are an anomaly or a trend.

“We'll see how all of 2014 develops to get a good feel if this is a true shift in the seasonality curve or not,” said Ali Bauerlein, co-founder and CEO. “All we know at this point is that the first quarter was strong, especially in the second half of the first quarter.”

To come in 2014: Inogen expects to launch its Inogen at Home stationary oxygen concentrator in the second half of this year. A 510(k) has been filed with the U.S. Food and Drug Administration.

Going into the remainder of the year, Inogen projects total revenues to be in the range of $92 million to $96 million for 2014, an increase of 22% to 27% compared to 2013. It projects net income to be $4 million to $5 million.