Nxt-ID announces earnings gains and reasserts plan to spin-off new authentication company
Nxt-ID has reported year-over-year revenue growth of 7 percent from $16 million in fiscal 2017 to $17.1 million in 2018, while gross profit increased by 12 percent to $12.3 million.
The company’s operating expenses from continuing operations were $11.7 million for the year, down from $13.1 million a year earlier. Operating income for the year ending December 31 was $0.6 million, after an operating loss of $2.2 million in 2017.
“Our year-end 2018 filing confirmed our previously released results, which showed continued strong performance from LogicMark and our healthcare business,” says Nxt-ID Chief Executive Officer Gino Pereira. “We have made significant progress toward improving the profitability of our continuing operations by reducing our cost structure, maintaining our core VA business and expanding the channels for our personal emergency response system product offerings. As we move forward with the planned spin-off of our payments business, we continue build on the strengths of both healthcare and payments businesses to maximize value for our shareholders.”
The spin-off Pereira refers to is planned for the first quarter of 2019, after being delayed late last year. It would see the company’s payment, authentication, and credential management business form an independent company, which would then file for an IPO.