Conformis (NSDQ:CFMS) posted first-quarter results that beat the revenue consensus on Wall Street but missed on earnings.
The Billerica, Mass.-based orthopedic company yesterday reported losses of -$11.51 million, or -9¢ per share, on sales of $13.84 million for the three months ended March 31, for a sales loss of -16.02% compared with Q1 2020.
Earnings per share were -9¢, 2¢ behind The Street, where analysts were looking for sales of $13.78 million.
“The year is off to a good start. We met our expectations for business activity in the quarter as COVID-19 headwinds impacted elective procedures to the degree we anticipated. Despite these continuing headwinds for our industry, we are pleased with the progress of vaccine adoption nationwide and, as a result, remain cautiously optimistic that we will see procedure levels get back to normal in the second half of 2021. This anticipated acceleration in activity is timed well for our planned product introductions, which remain on track,” Conformis president and CEO Mark Augusti said in a news release.
“We are in a great financial position, especially in light of the $11 million we expect to receive for achieving the final milestone under the Stryker development agreement. Having completed the development phase of the project with Stryker, we can now focus on manufacturing and supplying patient-specific instrumentation for Stryker. We will also continue to develop our hip portfolio, which grew nicely in the quarter, and continue preparing for the launch of our new knee offering, which will target the ASC segment.”
As announced in October 2019, Conformis received $14 million from Stryker for the Conformis patient-specific instrumentation (PSI). Another $16 million was up for grabs in milestones for sales, licensing and development of the Conformis technology for Stryker implants. Conformis last summer received an additional $3 million for Stryker after reaching a milestone to develop patient-specific instrumentation for use with Stryker’s knee implant offerings.
Conformis expects second-quarter product revenue to be in the range of $14 million to $14.5 million.
CFMS shares were down nearly –5% to 83¢ apiece in morning trading today. MassDevice’s MedTech 100 Index — which includes stocks of the world’s largest medical device companies — was down slightly.