Back to top

Analyst Blog

This page is temporarily not available.  Please check later as it should be available shortly. If you have any questions, please email customer support at or call 800-767-3771 ext.  9339.

Echo Therapeutics, Inc. (ECTE - Snapshot Report) posted a narrower loss of 49 cents per share for the third quarter of the year compared with $1.07 in the comparable quarter of 2012 as well as the Zacks Consensus Estimate of 56 cents. The decrease in loss was attributable to lower shares outstanding at the end of the quarter. Net loss, in fact, increased 22.8% to $5.2 million from $4.3 million a year ago.

Revenues in the quarter slid 27.1% to $22.6 thousand, significantly lower than the operating expenses of $4.95 million. This resulted in operating loss of $4.9 million compared with $3.6 million in the third quarter of 2012.

Research and development expenses rose 28.8% to $2.8 million from $2.1 million in the third quarter of 2012. The increase was attributable to higher development, regulatory and clinical expenses, as well as manufacturing preparation costs.

Selling, general and administrative expenses grew 45.4% to $2.2 million compared with $1.5 million for the third quarter of 2012. The increase was driven by pre-launch marketing and manufacturing activities.

Echo Therapeutics had cash and cash equivalents of $6.1 million as of Sep 30, 2013, up from $3.7 million as of Dec 31, 2012. Deferred revenues, notes payable and capital lease obligations decreased to $112.8 thousand from $302.7 thousand as of Dec 31, 2012.

ECTE implemented a cost reduction measures at the end of the third quarter, mainly marketing and manufacturing expenditures, and corporate general and administrative costs. Due to these measures, burn rate is expected to fall by 35-40% in the upcoming fourth quarter from the quarterly burn rate experienced during the first three quarters of the year.

Headquartered in Philadelphia, PA, Echo Therapeutics is a medical device company aimed at developing enhanced skin permeation technology Prelude SkinPrep System, and non-invasive, wireless, and glucose monitoring system known as Symphony CGM System.

Currently, ECTE retains a Zacks Rank #2 (Buy). Other preferable stocks from the medical instruments industry include Cynosure, Inc. (CYNO - Snapshot Report), CryoLife, Inc. (CRY - Snapshot Report) and Natus Medical Inc. (BABY - Snapshot Report). All of them carry a Zacks Rank #1 (Strong Buy).

Please login to or register to post a comment.

New to Zacks?

Start Here

Zacks Investment Research


Are you a new Zacks Member or a visitor to

Top Zacks Features

Learn more

Start for as little as $4.50 per trade.

My Portfolio Tracker

Is it Time to Sell?

One of the most important steps you can take today is to set up your portfolio tracker on Once you do, you'll be notified of major events affecting your stocks and/or funds with daily email alerts.

More Zacks Resources

Zacks Rank Home - Evaluate your stocks and use the Zacks Rank to eliminate the losers and keep the winners.

Mutual Fund Rank Home - Evaluate your funds with the Mutual Fund Rank for both your personal and retirement funds.

Stock/Mutual Fund Screening - Find better stocks and mutual funds. The ones most likely to beat the market and provide a positive return.

My Portfolio - Track your Portfolio and find out where your stocks/mutual funds stack up with the Zacks Rank.

Zacks #1 Rank Top Movers for Zacks #1 Rank Top Movers

Company Symbol Price %Chg
DIXIE GROUP DXYN 15.84 +7.90%
BOFL HOLDING BOFI 85.30 +4.97%
RAMBUS INC RMBS 12.31 +4.41%
VIPSHOP HOLD VIPS 148.73 +4.35%
NETFLIX INC NFLX 345.74 +4.32%