On Thursday, Intelligent Bio Solutions Inc. (NASDAQ:INBS) announced preliminary fiscal second-quarter sales of approximately $0.61 million and six-month sales of roughly $1.48 million.
Gross profit is expected to increase 32.6% from $0.43 million to $0.57 million for the six months. Gross profit margin is expected to increase to 38.5% from 27.7% for the six months ended December 31, 2024.
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The anticipated increase in gross profit and margin is driven by the company’s ongoing efforts to maximize recurring revenue from the sale of cartridges used in its Intelligent Fingerprinting Drug Screening System.
Cartridge sales are expected to continue to outpace reader sales, serving as a primary source of recurring revenue with a higher profit margin.
“Our strong financial performance underscores the momentum we are building. Despite quarterly fluctuations, our total calendar year revenue grew 23% year-on-year, reflecting our sustained upward trajectory. More importantly, our strategic focus on higher-margin cartridge sales is driving a significant 11-point expansion in gross profit margin, reinforcing the strength of our business model,” said Harry Simeonidis, President and CEO at Intelligent Bio Solutions.
During the fiscal second quarter, the company submitted its 510(k) premarket notification to the FDA for its Intelligent Fingerprinting Drug Screening System and strengthened its market reach through strategic partnerships.
The company expects to disclose financial results for the fiscal second quarter during the week commencing February 10, 2025.
In January, Intelligent Bio Solutions announced that Quantum Traffic Management, a U.K.-based traffic management provider, has adopted INBS Intelligent Fingerprinting Drug Testing Solution across 10 nationwide sites to increase workplace testing efficiency and safety.
Recently, Intelligent Bio Solutions announced a partnership with IVY Diagnostics Srl to strengthen its presence in Europe and the Middle East.
As a key distributor, IVY Diagnostics will help expand the adoption of Intelligent Bio Solutions’ Fingerprinting Drug Testing Solution across Europe and the Middle East, focusing on drug rehabilitation and law enforcement applications.
Price Action: INBS stock closed at $1.70 on Wednesday.
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