Cardiovascular Systems (NSDQ:CSII) said today that due to hurricanes Harvey and Irma it is experiencing reduced procedure volumes and, as a result, is expecting to see 2018 1st-quarter revenues.
The St. Paul, Minn.-based company said that the impact on its revenue is “magnified due to the company’s small product portfolio and location and timing of the storms,” as the Houston and Florida markets generate over 15% of its revenue.
Cardiovascular Systems said its 1st quarter revenues are “more heavily weighted in September” as it sees an uptick in procedure volume from lower summer levels. The company said it expects to see revenues in the 1st quarter of below the range of $52.6 million to $53.6 million it provided in August, with revised revenues provided when it has more information.
“Our thoughts go out to our employees in Florida and Texas and others affected by Hurricanes Harvey and Irma. As recovery progresses, we will closely monitor conditions and the anticipated impact on our business. While these historic storms are affecting our near-term performance, they are not indicative of our long-term growth opportunity and continued market leadership position,” prez & CEO Scott Ward said in a press release.
While the hurricanes will have an immediate impact on the company, the company is still positioned well for the coming months, according to Leerink Partner analyst Danielle Antalffy.
“With hospitals – and more importantly both hospital personnel and CSII sales reps – still ramping to full productivity as these regions recover, we currently assume no positive impact from procedures pushed into Q2 as timing is uncertain and hospitals will to some extent be limited capacity,” Antalffy wrote. “Ultimately, CSII could benefit from procedures pushed later into the year, but given the nature of these procedures, the positive impact is likely to be muted.”
Last month, Cardiovascular Systems released both 1-year and sub-analysis results from the Liberty 360 clinical trial of peripheral interventions, including those using its DiamondBack 360 coronary orbital atherectomy system.
