NORWELL, Mass., Nov. 14, 2024 (GLOBE NEWSWIRE) -- DIH Holding US, Inc. ("DIH")(NASDAQ:DHAI), a global provider of advanced robotic devices used in physical rehabilitation, which incorporates visual stimulation in an interactive manner to enable clinical research and intensive functional rehabilitation and training in patients with walking impairments, reduced balance and/or impaired arm and hand functions, today announced financial results for the second fiscal quarter ended September 30, 2024, and a restatement of the financial results for the first fiscal quarter ended June 30, 2024, to account for the timing of revenue and associated cost of sales recognition for two devices sold in late June 2024.

Recent Highlights

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  Revenue of $18.2 million for the quarter ended September 30, 2024, representing growth of 39% over the prior year period
  
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  Device revenue of $15.0 million and service revenue of $2.7 million for the quarter ended September 30, 2024, representing a growth of 49% and flat growth, respectively, over the prior year period
  
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  Revenue growth in Europe, Middle East and Africa (EMEA) and the Americas of 72% and 20%, respectively, over the prior year period
  
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  Gross Margin of 52.6%, representing an 11% improvement over the prior year period
  
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  Income before taxes of $0.1 million, representing an improvement of $2.5 million over the prior year period
  
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  Appointed Dietmar Dold to position of Chief Operating Officer
  
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  Restated first quarter 2025 revenue to equal $17.0 million, a 30.0% year-over-year growth rate, versus previously reported revenue of $16.2 million, a 24.1% year-over-year growth rate
  
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  Adjusted revenue guidance for the fiscal year 2025 to range between $60 million to $67 million
  

"Our financial results represent another consecutive quarter of strong revenue growth and operational performance across the income statement," said Jason Chen, Chairman and CEO of DIH. "We are pleased to have delivered positive income before taxes for the quarter in addition to recognizing a significant inflection in our gross margin profile. While we will continue to prioritize operational efficiencies going forward, we are adjusting our revenue guidance for the remainder of 2025 to account for certain macro environmental conditions as well as other business factors. We now anticipate revenue for fiscal year 2025 to range between $60 million to $67 million."

Financial Results for the Second Fiscal Quarter Ended September 30, 2024

Revenue for the three months ended September 30, 2024 increased by $5.1 million, or 39.1%, to $18.2 million from $13.1 million for the three months ended September 30, 2023. The overall increase was primarily due to an increase in devices sold of $4.9 million, or 48.8% year over year. The increase in devices revenue was primarily driven by higher sales volume in EMEA. Services revenue remained flat as compared to the prior period. Other revenue increased by $0.2 million to $0.4 million for the three months ended September 30, 2024 compared to $0.2 million for the three months ended September 30, 2023. Total revenue in the EMEA and in the Americas increased by $4.5 million and $0.8 million, respectively, to $10.7 million and $4.6 million for the three months ended September 30, 2024 compared to $6.2 million and $3.8 million for the three months ended September 30, 2023. The increase was partially offset by a decrease in sales in APAC of $0.1 million.

The impact due to foreign currency translation is immaterial for the three months ended September 30, 2024.

Gross profit for the second fiscal quarter ended September 30, 2024, was $9.6 million, an increase of 76.7% compared to the prior year period. The increase was driven by an increase of $4.5 million in sales primarily in the EMEA region. Cost of sales was improved as compared to September 30, 2023, and was driven in part by a provision adjustment in the prior year that was not recurring in the current period and the realization of an average 10% price increase implemented in the prior year for any new orders placed after the effective date of the increase. Due to the significant order intake in the last half of fiscal year 2024, the impact of the price increase is largely realized in fiscal year 2025 and beyond.

Selling, general and administrative expenses for the three months ended September 30, 2024 decreased by $0.6 million, or 9.6%, to $5.8 million from $6.4 million for the three months ended September 30, 2023. The decrease was driven by a $0.5 million decrease in professional service fees during the three months ended September 30, 2024 because professional expenses incurred during three months ended September 30, 2023 were related to the business combination and are not recurring.

Research and development costs for the three months ended September 30, 2024 increased by $0.3 million, or 20.6%, to $1.9 million from $1.6 million for the three months ended September 30, 2023. The increase was primarily attributable to a $0.2 million increase in the amortization expense related to capitalized software that was ready for its intended use during the three months ended September 30, 2024 and a $0.1 million increase in employee compensation.

Cash and cash equivalents on September 30, 2024 totaled $1.8 million.

Fiscal Year 2025 Outlook

The Company has revised its expected gross revenue for fiscal year 2025 to range between $60 million and $67 million.

Restatement of June 30, 2024 Form 10-Q

During the preparation of the Company's financial statements as of and for the three and six months ended September 30, 2024, the Company identified two device sales and related cost of sales which should have been recognized in the quarter ended June 30, 2024 when the transfer of control occurred. The device sales had erroneously not been recorded in the originally issued Form 10-Q. The errors in the unaudited condensed consolidated financial statements for the June 30, 2024 Non-Reliance Periods noted above will be corrected in the restated financial statements for the June 30, 2024 Non-Reliance Period in an amendment to the previously-filed Form 10-Q and a Post-Effective Amendment to the Form S-1.

As the company is restating the June 30, 2024 Non-Reliance Period, we are taking the opportunity to adjust for immaterial adjustments identified during the current review period, or were passed in the prior review period. The financials including any restated amounts are included as supplemental tables in this press release. The June 30, 2024 10Q-A and September 30, 2024 10Q will be filed no later than November 19, 2024.

About DIH Holding US, Inc.

DIH stands for the vision to "Deliver Inspiration & Health" to improve the daily lives of millions of people with disabilities and functional impairments through providing devices and solutions enabling intensive rehabilitation. DIH is a global provider of advanced robotic devices used in physical rehabilitation, which incorporate visual stimulation in an interactive manner to enable clinical research and intensive functional rehabilitation and training in patients with walking impairments, reduced balance and/or impaired arm and hand functions. Built through the mergers of global-leading niche technology providers, DIH is a transformative rehabilitation solutions provider and consolidator of a largely fragmented and manual-labor-driven industry.

Caution Regarding Forward-Looking Statement



This press release contains certain statements which are not historical facts, which are forward-looking statements within the meaning of the federal securities laws, for the purposes of the safe harbor provisions under The Private Securities Litigation Reform Act of 1995. These forward-looking statements include certain statements made with respect to the business combination, the services offered by DIH and the markets in which it operates, and DIH's projected future results. These forward-looking statements generally are identified by the words "believe," "project," "expect," "anticipate," "estimate," "intend," "strategy," "future," "opportunity," "plan," "may," "should," "will," "would," "will be," "will continue," "will likely result," and similar expressions. Forward-looking statements are predictions provided for illustrative purposes only, and projections and other statements about future events that are based on current expectations and assumptions and, as a result, are subject to risks and uncertainties that could cause the actual results to differ materially from the expected results. These risks and uncertainties include, but are not limited to: general economic, political and business conditions; the ability of DIH to achieve its projected revenue, the failure of DIH realize the anticipated benefits of the recently-completed business combination and access to sources of additional debt or equity capital if needed. While DIH may elect to update these forward-looking statements at some point in the future, DIH specifically disclaims any obligation to do so.

Investor Contact

Greg Chodaczek
332-895-3230
Investor.relations@dih.com

(1) All outstanding share and per-share amounts have been restated to reflect the reverse recapitalization as established in the Business Combination Agreement as described in Note 1 to the condensed consolidated financial statements.