ConforMIS (NSDQ:CFMS) released 2nd quarter earnings that slimly topped Wall Street’s expectations, seeing shares dip slightly in response.
The Bedford, Mass.-based company reported losses of $14.1 million, or 34¢ per share, on sales of $19.3 million for the 3 months ended June 30. That amounts to a 29% increase in losses while sales grew a smaller 0.6% compared with the same period in 2015.
Conformis reported adjusted product gross profits of $5.8 million for the quarter, up 32.1% from last year. Analysts on Wall Street were looking for losses per share of 35¢, which Conformis met, and revenue of $18.2 million, which the company handily topped.
“We exceeded our revenue guidance for the second quarter of 2016. This positive result is among the reasons why we are increasing the lower end of our guidance for 2016. We are extremely pleased with the market acceptance of iTotal PS in its first complete quarter following broad commercial launch. This innovative new product approximately triples the addressable market for ConforMIS. We are equally pleased with the progress ConforMIS has made in contracting with hospitals that participate in the new Medicare Comprehensive Care for Joint Replacement (CJR) model. We now have vendor agreements with 45% of the hospitals across the United States that participate in the CJR program. This is a notable achievement, particularly for a company of our commercial scale, that attests to our economic value proposition for hospitals,” CEO Dr. Philipp Lang said in a press release.
Shares have lifted slightly today after the release, up 1.3% to $7.89 as of 2:29 p.m. EDT.
Along with the earnings release, ConfoMIS lifted its guidance for the full year 2016. Revenue was shifted up slightly, from between $76 million and $81 million to between $77 million and $81 million.
Product revenue guidance was lifted by $1 million on the lower end, with the company expecting between $76 million to $80 million now, which represents 21% to 27% year-over-year growth.
