Shares in Endologix (NSDQ:ELGX) have lost nearly 40% after the company released second quarter earnings that missed loss per share expectations on Wall Street and lowered its guidance for the full year.
The Irvine, Calif.-based company posted losses of $23.9 million, or 28¢ per share, on sales of $44.7 million for the three months ended June 30, seeing losses grow 46.6% while sales shrunk 7.9% compared with the same period last year.
Adjusted to exclude one-time items, losses per share were 18¢, just behind the 15¢ consensus on Wall Street.
“Our second quarter results were in line with our expectations with solid growth from ovation in the U.S. and AFX in Japan, offset by slower sales of AFX in the U.S. market and Nellix in Europe. Looking at the remainder of this year and beyond, we are taking meaningful and necessary steps to reset our operational, clinical, and financial priorities in order to position the company for long-term success. Collectively, these initiatives would improve our competitiveness and lower our cost-to-serve. Our key strategic initiatives include strengthening the company’s leadership team, creating a culture of accountability, focused product and clinical development, rightsizing and investing in customer and market intelligence within our commercial organization, and exiting a number of small international markets. We firmly believe that Endologix has a well differentiated product portfolio delivering superior clinical outcomes, as evidenced by a growing body of clinical data related to our Nellix and Ovation products, and we are excited about the opportunities that lie ahead for our pipeline products, including Alto and ChEVAS. Looking forward, we will continue to build a culture of accountability while using this reset to strengthen our foundation and position the Company for profitable growth,” CEO John Onopchenko said in a press release.
Endologix dropped its expected revenue guidance significantly, now expecting to post sales of between $145 million and $155 million, down from between $170 million and $180 million. The company said it expects to post GAAP loss per share of between $1.04 and $1.12, up from previous expectations of between 89¢ and 95¢.
Shares in Endologix have fallen 49.7% so far today, at $2.86 as of 2:26 p.m. EDT.
In June, Endologix touted 1-year results from its Lucy registry – a study that prospectively assessed endovascular aneurysm repair outcomes in women compared to men.
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