- LogicMark ( NASDAQ: LGMK ) stock gained as much as 18.8% on Friday after the company, which provides medical alert systems for senior citizens, reported strong Q2 earnings .
- LGMK reported Q2 EPS of -$0.13 vs. -$0.22. Direct operating costs were $337K, up 32% Y/Y, driven by LGMK providing free replacements for 3G sunsetting units under warranty.
- Revenue increased 21.2% to $3.37M, led by improved sales to Veterans Affairs hospitals and clinics, and from replacement sales of 4G Guardian Alert 911 Plus devices to customers with 3G sunsetting units.
- Impact of the replacement program was largely completed by Q2-end.
- Operating expenses rose 63.2% to $3.1M due to investment in sales personnel, higher bonus and sales commissions, increased marketing costs and addition of resources to drive new product development.
- In a post-earnings call , CEO Chia-Lin Simmons said to counter the impact of ongoing supply chain issues, LGMK may look at increasing prices for its products.
- Shares of LGMK declined 60.4% YTD and 83% in the last 1 year. The stock posted losses in 3 trading sessions this week.
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LogicMark stock gains on strong Q2 earnings