The Malvern, Pa.-based psychiatric disorder treatment developer posted losses of $-7.8 million, or -41¢ per share, on sales of $9.7 million for the three months ended June 30, 2020, for a -9.5% bottom-line slide on a sales decline of -41.2%.
Adjusted to exclude one-time items, losses per share were also -41¢, 10¢ ahead of Wall Street, where analysts were looking for sales of $8.2 million.
Neuronetics, which develops a transcranial magnetic stimulation system to treat major depressive disorder, reported that its revenue decreases were primarily driven by the closure of practices or limited access in response to the COVID-19 pandemic.
“This quarter was negatively impacted due to the effects of COVID-19; however, our results were favorable to our internal expectations established at the beginning of the quarter,” Neuronetics CFO Steve Furlong said in a news release. “The company experienced positive commercial trends during the second half of the quarter, and we are anticipating these trends will continue through the remainder of the year.
“Further, the cost reduction efforts announced in April will enable Neuronetics to execute against our operating plan and maintain our robust cash balance.”
Despite uncertainties brought on by the pandemic, Neuronetics is still issuing guidance, with the projection in the range of $58 million to $60 million, having previously been set at $76 million to $78 million.
STIM shares were up 10.9% at $3.01 per share in midday trading today. MassDevice’s MedTech 100 Index — which includes stocks of the world’s largest medical device companies — was down -0.5%.