MusclePharm Corp (OTCMKTS:MSLP) reported 1Q2015 financial results for the period ended March 31, 2015. The net revenue came at $41.3 million, representing a 26% growth sequentially QOQ. The backlog sales came at $17.1 million, a jump of $12 million QOQ. The company reaffirmed the net revenue guidance of $210 million to $220 million for FY2015.
The cash flow surged 282% YOY to $5.9 million. The sales backlog stood at $17.1 million, representing growth of $12 million QOQ. The gross margins expanded to 51%%, up 1170 basis points sequentially and also 320 basis points against 2014 full year results.
The management comments
Brad Pyatt, the CEO and Chairman of MusclePharm, said that they were very delighted with the fundamentals of the business performance in 1Q and the positive momentum they have built in continued revenue contributions, sustainable margins and positive cash flow. The YOY revenue was down due to the timing of the Arnold Classic sales event.
Still, the company closed the first quarter with sales backlog orders of $17.1 million and the company is on way for strong revenue growth driven by the strengthening of core products, venturing into new retail outlets, new product launches and expanding distribution network. At the same time, MusclePharm Corp (OTCMKTS:MSLP) is actively managing its cash balance, with strong growth in cash flow in the first quarter, and handling operating expenses, with measures in place to keep costs under control. The management believes that the company is well positioned for sustained top line growth. The main aim of the company is to increase profitability and enhance share holders value.
In last trading session, the stock price of MSLP surged more than 15% to close the trading session at $4.85. The gains came at a share volume of 117,934 compared to average share volume of 51,370.