MARLBOROUGH, Mass. - Lifeward Ltd. (NASDAQ: LFWD), a company specializing in rehabilitation and recovery solutions, announced Monday its decision to sell the AlterG product line directly through its German sales team. The strategic move, revealed at the REHACARE 2024 conference in Düsseldorf, Germany, is expected to enhance the company's revenue and profit margins in the region.
The integration of AlterG products, including the newly introduced AlterG NEO, with Lifeward's existing offerings such as the ReWalk Personal Exoskeleton, aims to leverage the company's established sales infrastructure for increased market penetration in Germany. Lifeward's CEO, Larry Jasinski, expressed confidence that this direct sales approach would accelerate the company's path to profitability both in Germany and globally.
Charles Remsberg, Chief Sales Officer at Lifeward, cited the team's experience in the U.S. market earlier this year as a foundation for their confidence in growing the German market for both ReWalk and AlterG products.
Since 2013, AlterG products have been available in Germany through a distribution partnership with PHYSIOMED GROUP. Under the existing arrangement, PHYSIOMED will continue to provide service to its customer base of nearly 500 and distribute AlterG units alongside Lifeward's direct sales efforts.
Lifeward, founded in 2001, is recognized for its innovative product portfolio, which includes the ReWalk Exoskeleton, AlterG Anti-Gravity system, MyoCycle FES System, and ReStore Exo-Suit. The company operates in the United States, Israel, and Germany, with a mission to empower individuals with physical limitations or disabilities.
The company's forward-looking statements in the press release indicate management's expectations and are subject to risks, uncertainties, and changes beyond Lifeward's control. These statements are not guarantees of future performance, and actual results may differ materially.
This news article is based on a press release statement from Lifeward Ltd.
In other recent news, Lifeward Ltd, previously known as ReWalk Robotics, has announced several significant changes. The company reported Q2 earnings, matching revenue expectations with $6.7 million and posting a smaller-than-anticipated net loss per share of $0.50, which was less than the expected $0.55 per share loss. H.C. Wainwright, following these results, maintained a Buy rating on Lifeward and raised the price target to $13.00.
In board changes, Jeff Dykan, the long-standing Chairman of the Board, is retiring and Joseph Turk has been appointed as the new chairperson. In addition, Mike Swinford, the CEO of Numotion, has been welcomed to the Board of Directors. These are recent developments following the company's annual meeting, where shareholders approved the change of the company's name to "Lifeward Ltd."
However, several proposals did not receive the required level of shareholder support, including changes to CEO Larry Jasinski's variable compensation terms and the approval of equity compensation issuance to board member Randel E. Richner. The company's independent registered public accounting firm, Kost Forer Gabbay & Kasierer, was reappointed for the fiscal year ending December 31, 2024.
Looking forward, Lifeward confirmed its revenue guidance for 2024, anticipating a range between $28 million and $32 million. H.C. Wainwright projects Lifeward's total revenues for the year to be around $30.8 million, with a predicted net loss of $1.62 per share.
InvestingPro Insights
In light of Lifeward Ltd.'s (NASDAQ: LFWD) recent strategic move to enhance its revenue and profit margins in Germany, it's worth noting that analysts expect the company to see sales growth in the current year. This aligns with Lifeward's initiative to sell the AlterG product line directly through its German sales team, potentially capitalizing on the company's established sales infrastructure for increased market penetration.
InvestingPro data indicates that Lifeward holds a market cap of $27.9 million and has experienced a significant revenue growth of 313.3% over the last twelve months as of Q2 2024. This suggests a robust expansion in their business operations, which may reflect positively on their strategic decisions. However, it's important to consider that Lifeward's stock price has been quite volatile, and the company is trading near its 52-week low, which could indicate a level of market skepticism about its immediate financial prospects.
Furthermore, Lifeward's valuation implies a poor free cash flow yield, and the company has not been profitable over the last twelve months. Despite the anticipated sales growth, analysts do not expect Lifeward to be profitable this year. For investors considering Lifeward's stock, these factors may be significant when assessing the company's financial health and future performance.
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