The San Francisco, Calif.-based company posted losses of $10.4 million. or 61¢ per share, on sales of $9.8 million for the 3 months ended June 30, seeing losses grow 2.5% while sales grew 18.8% compared with the same period in the previous year.
Losses per share were 7¢ higher than the 54¢ consensus from analysts on Wall Street, with revenue falling just short of the $10.3 million consensus.
“We continued to experience positive underlying trends in our overall business during the second quarter as we added new accounts to our installed base and drove increased disposable usage. The PhotonBlade received an enthusiastic market reception during its trial commercialization phase, which supports our conviction regarding its future. During the quarter, we initiated a voluntary withdrawal of PhotonBlade to enhance the design of the product prior to full commercial launch, which we anticipate will occur by the end of the third quarter. This withdrawal from the market has delayed our commercialization plans and as a result we are adjusting our guidance. We remain confident that we have a solid platform to drive long-term shareholder value,” prez & CEO Philip Sawyer said in a prepared statement.
The lowered revenue could have been primarily due to a voluntary recall of the company’s PhotonBlade device, according to Leerink Partner analyst Richard Newitter.
“The estimated impact to 2Q was ~$500k as the company was unable to close on potential orders, and [management] also noted that as a result of the recall the sales force got distracted. The good news is that PhotonBlade is projected to be back on line by the end of 3Q17,” Newitter wrote in a letter to investors.
Invuity lowered its outlook for the rest of its fiscal year, expecting to see revenue between $40 million and $42 million, down from previous guidance of between $42 million and $44 million.
Shares in Invuity fell 7.6% to close at $7.30 today.