The Malvern, Penn.-based company reported losses of $12.6 million, or -68¢, on sales of $11.5 million for the three months ended March 31, for a bottom-line sales loss of -9.8% compared with Q1 2019.
Earnings per share were -68¢, 16¢ behind The Street, where analysts were looking for sales of $11.6 million.
“Despite a solid start to 2020 during January and February, both in terms of new system sales as well as revenue per active system, our business was materially impacted by the COVID-19 pandemic beginning in mid-March. In response to the disruptions and economic uncertainty caused by the COVID-19 pandemic and related governmental responses, we have implemented a corporate restructuring program to preserve capital as we manage through the pandemic and the resulting impact on the global economy,” chief financial officer Steve Furlong said in a news release.
“We believe the restructuring actions we have taken best position us to weather the fallout from COVID-19, maintain our balance sheet strength and preserve our market leadership position. As we navigate these challenging times, we are focused on supporting the well-being of our employees and their families as well as our customers and their patients. We are ready to satisfy the increased demand for NeuroStar Advanced Therapy that we expect will materialize in the wake of the COVID-19 pandemic and associated global economic turmoil,” Furlong said.
Neuronetics said it has experienced material impact to revenue since mid-March due to the ongoing pandemic and withdrew its full year 2020 guidance. The company was also one of a few medical device companies that received a paycheck protection program (PPP) loan from the U.S. Small Business Association.
Shares in STIM were down -0.42% to $2.35 apiece in mid-morning trading. MassDevice’s MedTech 100 Index — which includes stocks of the world’s largest medical device companies — was up 1.8%.