Iridex (NSDQ:IRIX) shares took a big hit today after the company said last week that it’s recalling a component used with its eye laser surgery device after receiving three reports of permanent injuries associated with it.
Mountain View, Calif.-based Iridex said Feb. 23 that it’s pulling all 104 of its TriFocus Lio Premier ophthalmoscopes.
The three injury reports “stated that the procedures resulted in patients experiencing permanent damage to the eye, including focal cataracts and iris burns.”
“Customers who have the TruFocus LIO Premiere should stop using it. Iridex is notifying its distributors and customers via FedEx and is arranging for return of all recalled products,” the company said.
The recall prompted Iridex to cut its top-line outlook for both the fourth quarter and full year, with Q4 sales now forecast at $10.2 million to $10.3 million, down from $11.0 to $11.1 million previously, and 2018 sales of $41.5 million to $41.6 million, compared with prior guidance of $42.3 million to $42.4 million.
The news sent IRIX shares down -23.1% to $5.63 apiece today in mid-morning trading.
Iridex said it plans to release its full results March 8 with more details about the recall.