Inogen (NSDQ:INGN) yesterday said it discovered "certain potential accounting matters" that prompted it to delay the release of its 4th-quarter and 2014 results pending further investigation into the matter.
Goleta, Calif.-based Inogen said its board’s audit committee launched an internal probe into the unspecified issues, but hasn’t come to any conclusions yet. Inogen said it still expects to meet its forecast for 2015.
Inogen postponed the earnings release scheduled for today, saying it would issue its financials "as soon as practicable following the completion of the audit committee’s investigation." The news prompted Leerink Partners analyst Danielle Antalffy to suspend coverage of Inogen.
"We continue to believe that portable oxygen concentrators have a meaningful market expansion opportunity. But given the uncertainty in historical numbers, it’s difficult to have full confidence in 2015 guidance," Antalffy wrote this morning in a note to investors.
“Based on our conversations with management, it’s clear that it is working hard on a resolution. Ultimately, the fact that management reiterated 2015 guidance is certainly encouraging, implying that sales for 2014 might not change, and reinforcing confidence in current INGN sales estimates (though our estimates are suspended)," she wrote.
In December, Inogen affirmed its guidance for 2014 and said it expected to post adjusted net income of $8 million to $9.5 million, on sales growth of 20% to 25%, or between $130 million and $135 million – fueled in part by a more than 30% expected rise in direct-to-consumer sales.
"Inogen remains confident in its strategy, top-line growth and profitability and does not believe these matters will impact the company’s previously stated outlook for fiscal year 2015 or its long-term business plan," Inogen said today. "We are unable to comment on fiscal year 2014 until the investigation is completed.
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