Categories Earnings, Health Care

InspireMD Q1 revenues plunge on third-party equipment failure

Israel-based medical device company InspireMD (NYSE: NSPR) reported a first-quarter loss of $3.82 per share, much wider than the loss of $2.50 per share projected by analysts.

Contrary to analysts’ expectations, revenues for the quarter plunged 59% to $415,000, primarily driven by a 55% decrease in sales of CGuard EPS and a 78% fall in sales of MGuard EPS. Both decreases were due to third-party sterilizer’s equipment failures that resulted in a significant interruption in product supply for the majority of the quarter.

Wall Street was expecting Q1 revenues of $1.10 million.

The company, which develops MicroNet stent platform technology for the treatment of coronary and vascular diseases, said the sterilizer issue has been resolved and a majority of the $600,000 of the backlog has been shipped.

READ: WHAT IS NASH AND WHICH BIOTECH FIRMS ARE VYING FOR THE FIRST-MOVER STATUS

CEO James Barry said, “Notwithstanding the issue that we encountered with our primary sterilization partner during the first quarter which led to a shortfall of product available to ship to our distributors, we continued to execute on our multi-faceted growth plan.”

The stock has declined 49% this year, primarily led by a stock offering. Shares of the company plunged 30% during morning trade after it priced its public offering of 486,957 common stock at $5 apiece.   

Browse through our earnings calendar and get all scheduled earnings announcements, analyst/investor conference and much more!

Most Popular

Does Unity Software (U) stock has more room to run?

Last month, the IPO market was in a full swing. IPOs of Snowflake (NYSE: SNOW) and JFROG (NASDAQ: FROG) had an impressive opening day in September, the former creating a

PepsiCo (PEP): Steady snacking habits amid pandemic drive strong quarter for beverage giant

PepsiCo Inc. (NASDAQ: PEP) beat market expectations on both revenue and earnings for the third quarter of 2020. The company saw the momentum continue in its snacks business while the

Does the virus-driven boom make Electronic Arts (EA) a good investment?

With more and more people turning to virtual entertainment sources, amid the virus-related movement restrictions, video game publishers like Electronic Arts (NASDAQ: EA) are witnessing unusually high demand. Not surprisingly,

Leave a Reply

Your email address will not be published. Required fields are marked *

Add Comment
Loading...

Cancel
Viewing Highlight
Loading...
Highlight
Close
Top