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.
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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.