Biomerica, Inc. reported net sales of $1.8 million for the first quarter of fiscal 2025, ending August 31, 2024, marking a 6% increase from $1.7 million in the prior year's quarter. This growth was primarily driven by higher demand from new and existing customers, alongside new contract manufacturing agreements. The company's gross margin for the quarter was 16%, a decrease from 24% in the first quarter of fiscal 2024, which was impacted by one-time reduction-in-force (RIF) costs.
Operating expenses for the quarter increased slightly to $1.7 million from $1.6 million in the prior year, mainly due to one-time severance costs associated with the RIF and expenses related to the introduction of a new sales force. Excluding these one-time RIF costs, operating expenses would have decreased by 2%, reflecting a focus on operational efficiency. The company implemented a cost-savings plan expected to reduce expenses by 16% to 23%, representing $1.0 million to $1.4 million in savings for the current fiscal year.
The operating loss for the quarter increased to $1.4 million, compared to $1.2 million in the prior-year quarter, largely driven by the aforementioned one-time RIF costs. Net loss also rose to $1.3 million, up from $1.1 million in the same period last year. Management stated that excluding RIF-related expenses, both operating and net losses would have been favorable compared to the prior year.
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