Med-Tech Co.’s Stock Jumps 19% Despite Wider Loss
Cardiovascular Systems, Inc., (CSI) reported a widened loss during its second quarter, but the company’s revenue rose 28 percent and its stock climbed nearly 20 percent Thursday morning.
The St. Paul-based medical device company develops and markets treatment systems for vascular and coronary disease.
For the second quarter, which ended December 31, CSI reported a net loss of $8.7 million, or $0.32 per share, compared to a net loss of $5.8 million, or $0.28 per share, during the same period in 2013. Its loss per share, however, was $0.04 less than what analysts polled by Thomson Reuters had expected.
Revenue, meanwhile, totaled $32.3 million, up 28 percent from $25.3 million in the second quarter of 2013. Second-quarter revenue beat analysts’ projections of $30.6 million.
CSI said its losses were due primarily to its planned investments related to FDA approvals and market launch initiatives. Those investments also caused the company’s operating expenses to rise 30 percent during the quarter.
“We continue to drive success in the peripheral arterial disease, or PAD, market with our easy-to-use technology that consistently provides a safe and effective solution to treat arterial calcium throughout the leg,” President and CEO David Martin said in a statement. “Continued physician adoption of our Stealth 360 PAD treatment system was the primary driver of revenue growth in the second quarter.”
In November, CSI raised about $85 million in a public offering of its common stock. The company said the proceeds would primarily fund growth investments like the launching of products treating coronary disease, clinical studies, product expansion, educational programs, and international expansion.
“With nearly $147 million of cash on hand, we now have the funds necessary to aggressively pursue our attractive expansion opportunities and implement our current growth strategy,” Martin said.
For its third-quarter outlook, CSI anticipates revenue growth of 25 to 30 percent but a continued loss of between $9.2 million and $10.2 million, or $0.31 to $0.34 per share.
Shares of CSI’s stock were trading up 19.25 percent at $35.07 during Thursday morning trading.