Shares in Cardiovascular Systems (NSDQ:CSII) fell today after the medical device maker posted growing losses, despite having topped loss-per-share consensus on Wall Street with its second quarter earnings results.
The St. Paul, Minn.-based company posted losses of $413,000, or 1¢ per hare, on sales of $52.6 million for the three months ended December 31, seeing losses grow 139.6% while sales grew by 5.2% compared with the same period last year.
Losses per share were just ahead of the 4¢ consensus on Wall Street, while sells fell just short of the $53.3 million analyst’s expectations.
“We are encouraged that the adjustments we made to our sales model last quarter resulted in 6% sequential revenue growth. However, we believe that the ramp in productivity from the recent addition of 45 clinical specialists may take longer than we anticipated in October. As a result, we now forecast fiscal year 2018 revenue to be in a range of $215 million to $219 million. During the second half of the fiscal year, we forecast continued attractive sequential quarterly revenue growth, due to improving sales productivity, our commercial launch in Japan, and the limited market release of OrbusNeich angioplasty balloons and Zilient guidewires,” prez, chair & CEO Scott Ward said in a press release.
Cardiovascular Solutions also updated its guidance for the coming third quarter, expecting to post sales of between $55 million and $56.5 million, with net losses per share of between 3¢ and 0¢.
“Second-quarter revenues improved, compared to first quarter, due in part to our decision to flex our sales model. Allocating approximately 20 of our sales reps to our coronary franchise helped restore growth and add new account revenue. However, the productivity ramp from the additional 45 clinical specialists fell short of our expectations. We now anticipate that productivity during the second half of the year will be lower than we forecasted in October. As a result, we now expect Fiscal Year 2018 revenues in the range of $215 million to $219 million,” Ward said in a prepared statement.
Shares in Cardiovascular Solutions have dropped 8.8% so far today, at $22.81 as of 9:44 a.m. EST.