Encision to lay off four employees in wake of 20 percent sales drop

This story has been updated with additional comments from Encision.

BOULDER  — Encision Inc. (PK: ECIA) is laying off staff in a $1 million cost-cutting plan after the company posted a 19.7 percent drop in sales.

The Boulder-based medical device maker had net revenues of $1,929,000 in its most recent quarter compared to $2,404,000 in the same quarter last year, according to its Q1 2020 earnings report filed with the U.S. Securities and Exchange Commission Monday morning.

It’s not clear how many employees will lose their jobs. The company did not disclose that figure in its report, but did say the savings will reach more than $1 million annually.

In an emailed statement to BizWest, Encision president and CEO Greg Trudel said the company will go from 31 to 27 employees.

In the filing, Encision president and CEO Greg Trudel blamed the ongoing trade war between the U.S. and China for driving up the cost of steel imports and other raw materials, and a general increase in labor costs.

“The trade war and tariffs are having a significant impact on our company,” he said. “In the short term, we have been forced to pass some of the burden on to our customers and we continue to make every possible effort to limit expenses.”

The company now has exactly as many assets as it does liabilities and shareholder equity, at $4,345,000 in each category.

Encision stock fell 3.65 percent from its opening price on the over-the-counter markets to 39 cents per share as of noon Mountain Time.

This story has been updated with additional comments from Encision.

BOULDER  — Encision Inc. (PK: ECIA) is laying off staff in a $1 million cost-cutting plan after the company posted a 19.7 percent drop in sales.

The Boulder-based medical device maker had net revenues of $1,929,000 in its most recent quarter compared to $2,404,000 in the same quarter last year, according to its Q1 2020 earnings report filed with the U.S. Securities and Exchange Commission Monday morning.

It’s not clear how many employees will lose their jobs. The company did not disclose that figure in its report, but did say the savings will reach more than $1 million annually.

In an emailed statement to BizWest, Encision president and CEO Greg Trudel said the company will go from 31 to 27 employees.

In the filing, Encision president and CEO Greg Trudel blamed the ongoing trade war between the U.S. and China for driving up the cost of steel imports and other raw materials, and a general increase in labor costs.

“The trade war and tariffs are having a significant impact on our company,” he said. “In the short term, we have been forced to pass some of the burden on to our customers and we continue to make every possible effort to limit expenses.”

The company now has exactly as many assets as it does liabilities and shareholder equity, at $4,345,000 in each category.

Encision stock fell 3.65 percent from its opening price on the over-the-counter markets to 39 cents per share as of noon Mountain Time.