Question · Q2 2025
Inquired about the stability of gross margins despite a revenue decline, the mitigation of customer concentration risk, and whether the company has capitalized on a competitor's recent product recall.
Answer
Gross margins were maintained by right-sizing the organization, investing in more efficient equipment, and because the former largest customer did not contribute significantly to margins. Customer concentration risk has been greatly reduced, with the former largest customer now representing only 10% of revenue, down from 45%. The company confirmed it is working to supplement supply for customers affected by a competitor's significant product recall, which had serious health consequences for patients.