Shares in Cardiovascular Systems (NSDQ:CSII) have risen slightly today after the medical device maker met loss-per-share expectations but missed sales consensus on Wall Street with its first quarter 2018 earnings results.
The St. Paul, Minn.-based company posted losses of $2 million, or 6¢ per share, on sales of $49.7 million for the 3 months ended September 30, seeing losses grow 6.4% while sales shrunk 0.2% compared with the same period during the previous fiscal year.
Losses per share for the quarter came in just ahead of the 7¢ consensus on The Street, while sales fell just short of the Street’s $51 million expectations.
“Fiscal first quarter procedure volumes in two key geographies were impacted by hurricanes during the quarter. In addition, we believe that our saline infusion pump recall resulted in lower coronary device usage during the quarter than anticipated. These factors were key contributors to first quarter revenues being below our guidance. These factors, combined with the complexity of treating severely calcified coronary lesions, have also highlighted some necessary adjustments to our sales model to help drive consistent adoption of our coronary device. As a result, we have reallocated 20 sales representatives to focus exclusively on the coronary opportunity and expanded the number of field sales professionals by 45, primarily by adding clinical specialists. These specialists will increase case coverage and support our sales representatives with both coronary and peripheral customers. We believe these adjustments will enhance sales productivity and drive further adoption in our coronary and peripheral franchises,” chair & CEO Scott Ward said in a press release.
With its earnings release, the company also updated its guidance for the second quarter 2018 and full fiscal year.
For its second quarter, Cardiovascular Systems expects to see revenue between $52.5 million and $54 million with a net loss between $1.9 million and $1 million. Losses per share are expected to be between 6¢ and 3¢.
For the full fiscal year 2018, the company said it expects to post revenue of between $226 and $233 million.
“With the September hurricanes and the pump recall behind us and our sales model adjustments in place, we expect procedure volumes to recover throughout our second quarter and our quarterly revenue growth rates over fiscal year 2017 to improve throughout the year,” Ward said in a prepared statement.
Shares have risen slightly, up 0.5% to $25.51 as of 11:55 a.m. EDT.