NANO-X IMAGING LTD (NASDAQ:NNOX) shares are up down on Wednesday as the company has entered into a strategic commercial agreement with Howard Technology Solutions.
300-System Deployment To Expand Market Reach
The partnership aims to deploy 300 Nanox.ARC systems over three years, which could significantly enhance Nanox’s presence in the healthcare market, particularly in underserved areas.
Under the terms of the agreement, Howard Technology Solutions will market and deploy 300 Nanox.ARC systems, with an initial rollout of 60 units in the first year.
The collaboration is expected to broaden the reach of Nanox’s 3D imaging technology across various healthcare facilities and public sector customers.
Quarterly Results Show Narrower Loss, Revenue Miss
The medical imaging company on Monday reported fourth quarter adjusted loss of 17 cents per share, beating the consensus loss of 19 cents.
The company reported quarterly sales of $3.72 million, slightly below the consensus of $3.994 million.
Restructuring Plan Targets Margins And Efficiency
The company has initiated a restructuring plan aimed at bringing its manufacturing cost base in line with its long-term financial model, with a focus on improving gross margins, lowering capital expenditures, and increasing operational efficiency.
The company is winding down certain operations at its South Korea facility beginning in the fourth quarter of 2025 and shifting from an in-house production model to a more outsourced approach.
South Korea Operations Refocused On R&D
The restructuring includes closing its chip manufacturing line in South Korea, downsizing fabrication facilities, and transferring selected production activities to third-party international partners, including CSEM.
The company will focus its South Korea operations on research and development and tube production to support the Nanox.ARC platform. The company expects to substantially complete the restructuring in fiscal 2026.
The imaging company estimates total restructuring and related charges at approximately $18 million, primarily tied to impairments of machinery and equipment linked to the chip manufacturing line.
NANO-X IMAGING reaffirmed fiscal 2026 sales guidance of $35 million compared to the Wall Street estimate of $31.6 million.
NNOX Price Action: Nano X Imaging shares were down 7.36% at $2.01 at the time of publication on Wednesday. The stock is trading at a new 52-week low, according to Benzinga Pro data.
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