Electromed is the purest U.S. franchise in high frequency chest wall oscillation, the vest based airway clearance therapy that sits at the center of chronic respiratory disease management at home. The company pairs a direct to patient go to market model with a lifetime patient warranty and a captive reimbursement department, and the result is a business that converts every new patient into durable recurring revenue. The strategic change underway is that this franchise is compounding. Full year revenue grew 15 percent to 74 million. Net income nearly doubled to 11 million, and the open question is whether the installed base and the sales force can keep accelerating.
The load bearing number is the homecare approval run rate. Homecare revenue rose 16 percent to 67 million for the year, and the filing attributes most of the lift to higher volume driven by a larger field force and greater productivity per rep, with a smaller slice from higher net revenue per approval. Gross margin expanded a little to 79 percent, so each incremental approval now carries more contribution than it did a year ago. The tension is that receivables climbed 5 million faster than the revenue that created them, a normal feature of a growing direct biller but one that deserves monitoring.
For the quarter ended March 31, net revenue was 18.6 million. That was up 18 percent year over year. Net income was 3 million, with diluted earnings per share of 0.35. The gross margin sat at 79 percent. The forward question is whether the hospital build out and the Medicare supplemental growth can sustain double digit growth into the next fiscal year, or whether the installed base and payer mix cap the upside.