As COVID-19 cases again rose in December and stressed ICU capacities, elective surgeries were again limited at hospitals.
Fewer surgeries in December because of COVID-19 dinged New Brighton company's finances
Cardiovascular Systems Inc. sees lower revenue in Q2.
February 4, 2021 at 10:03PM
Cardiovascular Systems Inc. makes devices used in surgeries to open calcified obstructions in peripheral and coronary arteries, among procedures that decreased in number. As a result, the New Brighton company's quarterly results were affected.
"Considering the unprecedented spike in hospital admissions, we are really pleased with these results and proud of our team's focused support of our customers and patients under these extreme conditions," said Chief Executive Scott Ward in a news release.
For the second quarter ended Dec. 31, Cardiovascular Systems reported revenue of $64.2 million. While it was an increase over the company's first-quarter revenue, it was 6.1% down from the same period a year ago. It also was lower than the midpoint of quarterly guidance it had given earlier.
The company trimmed selling, general and administrative expenses by 14.5% and research and development expenses by 11%. The company still reported a net loss of $56,000. That was an improvement over the $3.4 million net loss in the same quarter last year and exceeded analyst expectations.
The company is anticipating that as COVID-19 rates decline and vaccination rates increase, patient confidence will improve, leading to a bounceback in procedures.
Cardiovascular Solutions offered guidance for the third quarter ended March 31 of revenue between $60 million and $65 million. It predicted a quarterly loss between $3.5 million and $6 million.
The company this week also announced a partnership with Chansu Vascular Technologies to develop new drug-coated vascular balloons and guides. It's part of a broader initiative by Cardiovascular to capture more revenue per procedure from related devices used in conjunction with its Stealth 360 and Diamondback 360 devices.
The company reported results after the market on Wednesday. Shares of the company closed Thursday at $41, down nearly 5%. Over the past 52 weeks, shares have traded between $26 and $48.28 per share.
Patrick Kennedy • 612-673-7926
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