• DIH Announces Fiscal 2025 First Quarter Financial Results

    Источник: Nasdaq GlobeNewswire / 19 авг 2024 16:30:00   America/New_York

    NORWELL, Mass., Aug. 19, 2024 (GLOBE NEWSWIRE) -- DIH Holding US, Inc. ("DIH")(NASDAQ:DHAI), a global provider of advanced robotic devices used in physical rehabilitation, which incorporate visual stimulation in an interactive manner to enable clinical research and intensive functional rehabilitation and training in patients with walking impairments, reduced balance and/or impaired arm and hand functions, today announced financial results for the quarter ended June 30, 2024, which is the first quarter of fiscal 2025.

    Recent Highlights

    • Revenue of $16.2 million for the quarter ended June 30, 2024, representing growth of 24% over the prior year period
    • Device revenue of $12.3 million and service revenue of $3.5 million for the quarter ended June 30, 2024, representing growth of 18% and 49%, respectively over the prior year period
    • Revenue growth in both Europe, Middle East and Africa (EMEA) and the Americas of 54% over the prior year period
    • Gross Margin of 53.5%, representing a 12 percentage point improvement over the prior year period
    • Net loss of $0.6 million, representing improvement of $2.3 million over the prior year period
    • DIH reiterates its expected full year 2025 revenue range of $74 million to $77 million, representing growth of approximately 15% to 20% over the full year 2024

    “We are very pleased with the Company’s performance in the first quarter of Fiscal Year 2025, showing significant progress over the same quarter last year,” said Jason Chen, Chairman and CEO of DIH. “I am excited that two of our major strategic markets, EMEA and the Americas, each achieved growth of 54% and that recurring service revenue grew by 49%. Our team has increased account penetration and enhanced productivity through workflow efficiencies, as reflected in the significant improvements in both gross margin and net income. We will continue to enrich our product solution offerings throughout the year and I remain excited about the significant growth opportunities ahead of us.”

    Financial Results for the First Fiscal Quarter Ended June 30, 2024

    Revenue for the three months ended June 30, 2024 increased by $3.1 million, or 24.1%, to $16.2 million from $13.0 million for the three months ended June 30, 2023. The overall increase was primarily due to an increase in devices sold of $1.8 million, or 17.6% year over year. The increase in devices revenue was primarily driven by higher sales volume in EMEA. Services revenue represented an increase of $1.2 million, up 49.1% compared to the prior period. Other revenues were consistent compared to the prior period. Total revenue in EMEA and the Americas increased by $3.6 million and $1.6 million, respectively, to $10.2 million and $4.6 million for the three months ended June 30, 2024 compared to $6.6 million and $3.0 million for the three months ended June 30, 2023. The increase was partially offset by a decrease in sales in Asia.

    The impact due to foreign currency translation resulted in a decrease of approximately $0.1 million in revenue for the three months ended June 30, 2024.

    Gross profit for the first fiscal quarter ended June 30, 2024, was $8.7 million, an increase of 60.6% compared to the prior year period. The increase was driven by an increase of $3.1 million in sales primarily in the EMEA region. Cost of sales was improved as compared to June 30, 2023, and was driven in part by a provision adjustment in the prior year that was not recurring in the current period.

    Selling, general and administrative expense for the three months ended June 30, 2024 increased by $2.8 million, or 48.2%, to $8.7 million from $5.8 million for the three months ended June 30, 2023. The increase was driven by a $0.7 million increase in professional service costs related to audit, legal and other professional services along with an investment in finance capacity to support public company reporting obligations. Additionally, the increase included a $0.7 million increase in performance-based compensation and a $0.9 million increase in overhead expenses supporting the current growth. In addition, the Company implemented new guidance for the provision of credit losses during the three months ended June 30, 2023 The adjustment during the prior period reduced reserves on receivables in the prior year and, generated a benefit to the Company in the prior year that is not recurring as of the three months ended June 30, 2024.

    Research and development costs for the three months ended June 30, 2024 increased by $0.2 million, or 14.3%, to $1.6 million from $1.4 million for the three months ended June 30, 2023. The increase was primarily attributable to a $0.2 million increase in personnel expenses related to increased employee compensation.

    Cash and cash equivalents on June 30, 2024 totaled $2.7 million.

    Fiscal Year 2025 Outlook

    The Company continues to expect gross revenue for fiscal year 2025 to range between $74 million and $77 million, representing approximately 15%-20% growth over fiscal year 2024.

    About DIH Holding US, Inc.

    DIH stands for the vision to “Deliver Inspiration & Health” to improve the daily lives of millions of people with disabilities and functional impairments through providing devices and solutions enabling intensive rehabilitation. DIH is a global provider of advanced robotic devices used in physical rehabilitation, which incorporate visual stimulation in an interactive manner to enable clinical research and intensive functional rehabilitation and training in patients with walking impairments, reduced balance and/or impaired arm and hand functions. Built through the mergers of global-leading niche technology providers, DIH is a transformative rehabilitation solutions provider and consolidator of a largely fragmented and manual-labor-driven industry.

    Caution Regarding Forward-Looking Statements

    This press release contains certain statements which are not historical facts, which are forward-looking statements within the meaning of the federal securities laws, for the purposes of the safe harbor provisions under The Private Securities Litigation Reform Act of 1995. These forward-looking statements include certain statements made with respect to the business combination, the services offered by DIH and the markets in which it operates, and DIH’s projected future results. These forward-looking statements generally are identified by the words “believe,” “project,” “expect,” “anticipate,” “estimate,” “intend,” “strategy,” “future,” “opportunity,” “plan,” “may,” “should,” “will,” “would,” “will be,” “will continue,” “will likely result,” and similar expressions. Forward-looking statements are predictions provided for illustrative purposes only, and projections and other statements about future events that are based on current expectations and assumptions and, as a result, are subject to risks and uncertainties that could cause the actual results to differ materially from the expected results. These risks and uncertainties include, but are not limited to: general economic, political and business conditions; the ability of DIH to achieve its projected revenue, the failure of DIH realize the anticipated benefits of the recently-completed business combination and access to sources of additional debt or equity capital if needed. While DIH may elect to update these forward-looking statements at some point in the future, DIH specifically disclaims any obligation to do so.

    Investor Contact
    Greg Chodaczek
    332-895-3230
    Investor.relations@dih.com

    DIH HOLDING US, INC.
    CONSOLIDATED BALANCE SHEETS
    (in thousands, except share and per share data, unaudited)
     
     As of June 30, 2024  As of March 31, 2024 
    Assets     
    Current assets:     
    Cash and cash equivalents$2,749  $3,225 
    Accounts receivable, net of allowances of $631 and $667, respectively 5,690   5,197 
    Inventories, net 9,014   7,830 
    Due from related party 5,728   5,688 
    Other current assets 6,194   5,116 
    Total current assets 29,375   27,056 
    Property, and equipment, net 664   530 
    Capitalized software, net 2,052   2,131 
    Other intangible assets, net 380   380 
    Operating lease, right-of-use assets, net 4,388   4,466 
    Other tax assets 417   267 
    Other assets 933   905 
    Total assets$38,209  $35,735 
    Liabilities and Deficit     
    Current liabilities:     
    Accounts payable$5,368  $4,305 
    Employee compensation 3,991   2,664 
    Due to related party 9,790   10,192 
    Current portion of deferred revenue 6,350   5,211 
    Manufacturing warranty obligation 549   513 
    Current portion of long-term operating lease 1,509   1,572 
    Current maturities of convertible debt 1,461    
    Advance payments from customers 9,272   10,562 
    Accrued expenses and other current liabilities 9,950   9,935 
    Total current liabilities 48,240   44,954 
    Convertible debt, net of current maturities 1,177    
    Notes payable - related party 10,722   11,457 
    Non-current deferred revenues 4,747   4,670 
    Long-term operating lease 2,925   2,917 
    Deferred tax liabilities 89   112 
    Other non-current liabilities 4,304   4,171 
    Total liabilities$72,204  $68,281 
    Commitments and contingencies     
    Deficit:     
    Preferred stock, $0.00001 par value; 10,000,000 shares authorized; no shares issued and outstanding at June 30, 2024 and March 31, 2024     
    Common stock, $0.0001 par value; 100,000,000 shares authorized; 34,544,935 shares issued and outstanding at June 30, 2024 and March 31, 2024 3   3 
    Additional paid-in-capital 3,685   2,613 
    Accumulated deficit (35,826)  (35,212)
    Accumulated other comprehensive income (loss) (1,857)  50 
    Total deficit$(33,995) $(32,546)
    Total liabilities and deficit$38,209  $35,735 
            


    DIH HOLDING US, INC.
    CONSOLIDATED STATEMENTS OF OPERATIONS
    (in thousands, except per share data, unaudited)
     
     For the Three Months Ended June 30, 
     2024  2023 
    Revenue$16,187  $13,045 
    Cost of sales 7,521   7,648 
    Gross profit 8,666   5,397 
    Operating expenses:     
    Selling, general, and administrative expense 8,676   5,837 
    Research and development 1,644   1,438 
    Total operating expenses 10,320   7,275 
    Operating loss (1,654)  (1,878)
    Other income (expense):     
    Interest income (expense) (135)  (120)
    Other income (expense), net 1,898   (689)
    Total other income (expense) 1,763   (809)
    Income (loss) before income taxes 109   (2,687)
    Income tax expense 723   226 
    Net loss$(614) $(2,913)
          
    Net loss per share, basic and diluted$(0.02) $(0.12)
    Weighted average common shares outstanding, basic and diluted 34,545   25,000 
            


    DIH HOLDING US, INC.
    CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS
    (in thousands, unaudited)
     For the Three Months Ended June 30, 
     2024 2023 
    Net loss$(614) $(2,913)
    Other comprehensive (loss) income, net of tax     
    Foreign currency translation adjustments, net of tax of $0 and $0 (1,388)  841 
    Pension liability adjustments, net of tax of $0 and $0 (291)  (420)
    Other comprehensive (loss) income (1,679)  421 
    Comprehensive loss$(2,293) $(2,492)
            


    DIH HOLDING US, INC. AND SUBSIDIARIES
    INTERIM CONDENSED COMBINED STATEMENTS OF CHANGES IN EQUITY (DEFICIT)
    (in thousands, unaudited)
     Common Stock         
     Shares(1) Amount Additional Paid-In Capital Accumulated Deficit Accumulated Other Comprehensive Income (Loss) Total Equity (Deficit) 
    Balance, March 31, 2023 25,000,000 $2 $(1,898)$(26,769)$(289)$(28,954)
    Net loss       (2,913)   (2,913)
    Other comprehensive loss, net of tax         421  421 
    Balance, June 30, 2023 25,000,000 $2 $(1,898)$(29,682)$132 $(31,446)
                 
     Shares Amount Additional Paid-In Capital Accumulated Deficit Accumulated Other Comprehensive Income (Loss) Total Equity (Deficit) 
    Balance, March 31, 2024 34,544,935 $3 $2,613 $(35,212)$50 $(32,546)
    Net loss       (614)   (614)
    Transaction relates to reverse recapitalization     710      710 
    Issuance of warrants     362      362 
    Other comprehensive income, net of tax         (1,907) (1,907)
    Balance, June 30, 2024 34,544,935 $3 $3,685 $(35,826)$(1,857)$(33,995)
                       


    DIH HOLDING US, INC.
    CONSOLIDATED STATEMENTS OF CASH FLOWS
    (in thousands, unaudited)
     For the Three Months Ended June 30, 
     2024  2023 
    Cash flows from operating activities:     
    Net loss$(614) $(2,913)
    Adjustments to reconcile net loss to net cash provided by operating activities:     
    Depreciation and amortization 91   79 
    Provision for credit losses (36)  (432)
    Allowance for inventory obsolescence (13)  693 
    Pension contributions (150)  (150)
    Pension expense 77   66 
    Foreign exchange (gain) loss (1,899)  689 
    Noncash lease expense 422   375 
    Noncash interest expense    7 
    Deferred and other noncash income tax (income) expense (166)  4 
    Changes in operating assets and liabilities:     
    Accounts receivable (489)  705 
    Inventories (1,468)  (1,332)
    Due from related parties (108)  1,522 
    Due to related parties (584)  (649)
    Other assets (872)  (398)
    Operating lease liabilities (425)  (518)
    Accounts payable 1,508   36 
    Employee compensation 1,388   (160)
    Other liabilities    189 
    Deferred revenue 1,411   209 
    Manufacturing warranty obligation 50   71 
    Advance payments from customers (1,136)  2,229 
    Accrued expense and other current liabilities 1,003   (797)
    Net cash used in operating activities (2,010)  (475)
    Cash flows from investing activities:     
    Purchases of property and equipment (235)  (15)
    Net cash used in investing activities (235)  (15)
    Cash flows from financing activities:     
    Proceeds from issuance of convertible debt, net of issuance costs 2,509    
    Payments on related party notes payable (735)  (1,936)
    Net cash provided by (used in) financing activities 1,774   (1,936)
    Effect of currency translation on cash and cash equivalents (5)  13 
    Net increase in cash, and cash equivalents, and restricted cash (476)  (2,413)
    Cash, and cash equivalents - beginning of period 3,225   3,175 
    Cash, and cash equivalents - end of period$2,749  $762 
    Supplemental disclosure of cash flow information:     
    Interest paid$135  $113 
    Income tax paid$  $ 
    Supplemental disclosure of non-cash investing and financing activity:     
    Accounts payable settled upon reverse recapitalization$710  $ 
            

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