ConforMIS shares down as Q4, FY2018 earnings show shrinking sales

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Shares in ConforMIS (NSDQ:CFMS) have fallen slightly today after the medical device maker posted shrinking sales for its fourth quarter and full fiscal year 2017, despite having topped Q4 losses per share expectations on Wall Street.

The Billerica, Mass.-based company posted losses of $11.9 million, or 27¢ per share, on sales of $20.5 million for the 3 months ended December 31, seeing losses shrink 24.7% while sales shrunk a smaller 4.4% compared with the same period during the previous year.

Quarterly losses-per-share were just ahead of the 31¢ consensus on Wall Street.

For the full fiscal year, ConforMIS posted losses of $53.4 million, or $1.24 per share, on sales of $77.1 million, seeing losses shrink 7.1% while sales shrunk a smaller 2.3% compared with its previous fiscal year.

“As reported earlier, with our fourth quarter revenue of $20.8 million, we exceeded the high-end of our guidance. Importantly, our gross margin – which is a key imperative for us – increased to 42% for the quarter. This improvement exceeded our guidance, is consistent with our efforts throughout 2017 and we believe positions us well heading into 2018,” prez & CEO Mark Augusti said in a press release.

For the upcoming year, ConforMIS said it expects to post sales of between $79.6 million and $83.6 million, for year-over-year growth of 2% to 8%. For its first quarter in 2018, the company said it expects to post revenue between $19.1 million and $19.8 million.

“As I have mentioned previously, 2017 was a transition year for ConforMIS as we focused on improving our long-term growth and profitability profile. We expect continued strength coming from our iTotal PS, which was fully launched in the first half of 2016, and we are focused on improving our commercial execution to drive better results in our base business going forward. We expect continued improvements in our gross margin in 2018. We also expect to continue to report out on our clinical and health economic data throughout 2018 and commence the limited launch of our ConforMIS hip system in the back half of the year,” Augusti said in a prepared statement.

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