The Minneapolis-based company posted losses of -$1.3 million, or -7¢ per share, on sales of $43.7 million for the three months ended March 31, 2020, for a bottom-line into the red from profits of $1.5 million at this point last year, despite sales growth of 16.1%.
Adjusted to exclude one-time items, losses per share were also -7¢, 5¢ behind Wall Street, where analysts were looking for sales of $43.6 million.
“While we were pleased to see revenue performance that exceeded our expectations during the first two months of the quarter, our growth trends slowed materially in March as healthcare facilities and clinics restricted access to their clinicians, reduced patient consultations and treatments, or announced temporary closings as a result of the COVID-19 pandemic,” Tactile Systems CEO Gerald Mattys said in a news release.
The at-home chronic disease treatment developer’s CEO added that the early-market response to its shift to virtual sales and services was positive and could reduce the impact that the pandemic has on the company’s business.
“We believe that we are well-capitalized to weather this crisis and plan to leverage our strong balance sheet to continue expanding our commercial organization this year as we focus on being well-positioned to return to delivering strong, sustained and profitable growth as the COVID-19 crisis subsides,” Mattys said.
Tactile Systems withdrew its 2020 financial guidance on April 6 amid the uncertainties brought on by COVID-19.
TCMD shares were up 0.7% at $49.08 per share in mid-morning trading today. MassDevice’s MedTech 100 Index — which includes stocks of the world’s largest medical device companies — was down 0.5%.