Increased staff costs kept Ottawa’s Annidis from turning a profit, despite first-quarter revenues more than doubling year-over-year.
The company (TSX-V: RHA), which makes non-invasive diagnostic machines for eye-care professionals, reported revenue of $797,989 during the three-month period that ended on March 31. That’s up 121 per cent from $361,818 during the same period last year.
That increased revenue was a result of higher sales and a higher gross margin due to an increase in the average price of the company’s machines.
Gross margin increased to 15.2 per cent during the quarter, up from 12.4 per cent during the same period last year.
The company’s net loss, however, was also up. It rose to $1.24 million from $966,373 in the first quarter of 2013, due largely to higher staff costs, the company said.
“In the latter half of 2013, the company hired additional staff in all areas to meet the manufacturing, sales and research and development requirements to meet its production and sales goals for 2014,” executives wrote in the management discussion and analysis filed with securities regulators.
“As a result of this increase in staff, and bringing existing employees back to full pay, the company’s staffing costs almost doubled in the first quarter of 2014 compared to 2013.”