Medtronic (NYSE:MDT) shares have dropped 1.7% today after CFO Karen Parkhill told Bloomberg that its fiscal Q1 constant currency sales will be in the low end of guidance due to a week-long systems crash, according to a Seeking Alpha report.
The company’s manufacturing and customer order systems went down for a full week due to an internal technical issue last month, leaving the medtech giant playing catch-up to get back in working order.
No official numbers were released related to the amount of customer orders that were disrupted by the outage, but it was confirmed that the internal technical issues had a direct impact on Medtronic’s customers.
The Fridley, Minn.-based company still expects to achieve its 4-5% growth guidance for the year, according to the Seeking Alpha report, with fiscal 1st quarter earnings in the upper range of its high-single-digit guidance.
Shares have dropped 1.7%, or $1.50, to $87.06 as of 12:19 p.m. EDT.
The outage, originally reported June 26, was attributed to an internal technical issue, with CEO Omar Ishrak writing in a letter to employees that there was no evidence of an “outside agent” involved, nor any breached data. The company said it is still investigating the root cause of the issue.
Ishrak reportedly told employees that the outage would require extra shifts to ensure that the company would be able to meet its customer and patient needs.