Ekso Bionics Holdings Inc (NASDAQ:EKSO) is trying to make a comeback after coming under pressure early in the year. The stock’s sentiments on Wall Street took a hit, amidst reports the company might have posted irregular financial results for FY2016 financials.The company was consequently hit a wave of class action suits, a move that only went on to scare investors triggering a sell-off wave.After losing more than 50%, things are starting to look up for the stock, after a series of positive developments.The company is fresh from reporting impressive financial results for the fourth quarter and full year ending December 31, 2017. In addition, Ekso Bionics has inked a number of deals as it looks to broaden awareness of its FDA approved Ekso GT bionics suit.Price ActionTrading volumes have spiked an indication of growing investors’ confidence following a string of positive updates. A close above the $1.80 mark is already arousing suggestions that the worst could be over and that the stock could rally to its 52-week highs. EKSO Daily ChartThe stock faces immediate resistance at the $2.10 level a close above which could see it make a push for the $3 handle on its way to 52-week high of $4.77. On the other hand, a sell-off followed by a close below the $1.50 mark, could open the door for the stock to drop to the $1 a share mark.Ekso Bionics bills itself as a leading developer of exoskeleton solutions or wearable robots for augmenting human strength, endurance, and mobility. The company has developed a number of solutions that help paralyzed people stand and walk.Its lead product, Ekso GT bionic suit has helped thousands of people living with paralysis make steps that would otherwise be impossible. The company also performs research and development works on human exoskeletons and related technologies.Stock CatalystsIn our previous update, we took note of how the company was destined for a bright future after unveiling a pilot program in partnership with automaker behemoth Ford Motor. Under the partnership, the automaker has agreed to trial Ekso Bionics’ proprietary technology with a view to implementing it in its network of manufacturing and distribution plants, across the U.SThe Ford Partnership is a big deal given that if successful, it could open the door for further use of the proprietary technology in the larger auto industry, as the company continues to focus on the healthcare sector.National Stroke Association PartnershipIn a bid to further strengthen Ekso GT awareness, Ekso Bionics has inked an education partnership with the National stroke association. The partnership presents yet another opportunity to enhance access to the stroke rehabilitation exoskeleton technology, given that more than 17 million people worldwide, experience a stroke every year.More than 60% of acute stroke survivors end up paralyzed and unable to walk. With the FDA, approved EksoGT exoskeleton device, Ekso Bionics should be able to address their needs and in the process generate significant value.
“As the company behind the first FDA-approved exoskeleton for stroke rehabilitation, we have inherent obligation to ensure survivors and their healthcare providers are better informed and have access to this technology,” said Jack Peurach, CEO and President of Ekso Bionics. “We intend to continue working with the National Stroke Association to establish the EksoGT™ as the standard of care in stroke rehabilitation.”
Financial resultsEkso Bionics reported revenues of $2.5 million for the fourth quarter ended December 31, 2017, down from revenues of $2.6 million reported the previous year. During the quarter the company recorded 49% year-over-year increase in Ekso GT system shipments. The Company also registered a significant reduction in cash loss from operations from $9.7 million to $5.7 million.The company exited the year with cash on hand of $27.8 million compared to $16.8 million as of December 31, 2016.
“Changing the paradigm of how the medical and industrial communities protect and restore human mobility takes time, but our solid fourth quarter 2017 financial results demonstrate that our commercialization efforts over the past six quarters are starting to bear fruit,” said Mr. Peurach.
What Next For Ekso Bionics in 2018?Ekso Bionics remains well positioned to leverage the momentum created in 2017 as it moves to target a broader market with its Ekso GT bionics suit. The company’s sales pipeline is expected to benefit from increased market awareness, thanks to deals the company has signed with other companies.Improving gross margins is a further testament that the company will be able to post better than expected financial results as it ramps up sales and marketing efforts. The fact that the company boasts of the only FDA approved exoskeleton device is a plus that gives it a competitive edge as a fast mover in a market with enormous potential.The stock should be able to power high given the solid fundamentals especially after a recent pullback.Disclosure: We have no position in EKSO and have not been compensated for this article.
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