ST. PAUL, Minn.--(BUSINESS WIRE)--Cardiovascular Systems, Inc. (CSI) (NASDAQ:CSII) today reported preliminary revenue for its fiscal third quarter ended March 31, 2016. For the quarter, the company anticipates revenue to range from $43.5 million to $44 million, approximately 4 percent to 5 percent above the high end of its previously issued guidance range of $40.5 million to $42 million. Additionally, CSI announced broad-based restructuring measures to reduce costs as a key part of its plan to balance revenue growth with a pathway to profitability and positive cash flow. The restructuring measures include a workforce reduction of approximately 8 percent.
Scott Ward, CSI’s Chairman and Interim President and Chief Executive Officer, said, “As we discussed on our second-quarter earnings call, our immediate focus is to stabilize our sales force and resume sequential quarterly revenue growth. We’ve made solid progress on these goals, resulting in revenues exceeding guidance for the third quarter of this fiscal year. We also discussed our longer term effort of positioning CSI for profitability and positive cash flow. The restructuring announced today is a significant step in achieving these goals.”
As a result of the restructuring and previously announced departure of its CEO, CSI expects to take a one-time charge of approximately $4.5 million in its fiscal 2016 third quarter. Additionally, as disclosed on March 21, 2016, the company has reached an agreement in principle with the U.S. Department of Justice to settle claims underlying the government’s investigation. That agreement in principle is expected to result in a one-time charge of approximately $8 million in the fiscal 2016 third quarter.
All financial results are preliminary and subject to the company’s usual close procedures and review by its external auditors. Full third-quarter financial results are expected to be released on May 4.
About Cardiovascular Systems, Inc.
Cardiovascular Systems,
Inc., based in St. Paul, Minn., is a medical device company focused on
developing and commercializing innovative solutions for treating
peripheral and coronary disease. The company’s Orbital Atherectomy
Systems treat calcified and fibrotic plaque in arterial vessels
throughout the leg and heart in a few minutes of treatment time, and
address many of the limitations associated with existing surgical,
catheter and pharmacological treatment alternatives. The U.S. FDA
granted 510(k) clearance for the use of the Diamondback Orbital
Atherectomy System in peripheral arteries in August 2007. In October
2013, the company received FDA approval for the use of the Diamondback
Orbital Atherectomy System in coronary arteries. The Stealth 360®
Peripheral Orbital Atherectomy System (OAS) received CE Mark in October
2014. To date, over 235,000 of CSI’s devices have been sold to leading
institutions across the United States. For more information, visit the
company’s website at www.csi360.com.
Safe Harbor
Certain statements in this news release are
forward-looking statements within the meaning of the Private Securities
Litigation Reform Act of 1995 and are provided under the protection of
the safe harbor for forward-looking statements provided by that Act. For
example, statements in this press release regarding (i) preliminary
financial results; (ii) future growth, profitability and positive cash
flow; (iii) the agreement in principle with the United States Department
of Justice; and (iv) the sizes of one-time charges, are forward-looking
statements. These statements involve risks and uncertainties that could
cause results to differ materially from those projected, including, but
not limited to, the finalization of the quarter close process; the
ability of CSI and the United States Department of Justice to negotiate
and agree upon definitive documentation and actions of courts and other
governmental entities; regulatory developments in the U.S. and foreign
countries; FDA and similar foreign clearances and approvals; approval of
our products for distribution in foreign countries; approval of products
for reimbursement and the level of reimbursement; dependence on market
growth; the experience of physicians regarding the effectiveness and
reliability of CSI’s products; the reluctance of physicians, hospitals
and other organizations to accept new products; actual clinical trial
and study results; the impact of competitive products and pricing;
unanticipated developments affecting our estimates regarding expenses,
future revenues and capital requirements; the difficulty to successfully
manage operating costs; our inability to sustain growth in our sales and
marketing organization; our ability to manage employee turnover, growth
and training; our ability to manage our sales force expansion and dual
franchise strategy; our ability to secure financing; our ability to
manage costs; general economic conditions; and other factors detailed
from time to time in CSI’s SEC reports, including its most recent annual
report on Form 10-K and subsequent quarterly reports on Form 10-Q. CSI
encourages you to consider all of these risks, uncertainties and other
factors carefully in evaluating the forward-looking statements contained
in this release. As a result of these matters, changes in facts,
assumptions not being realized or other circumstances, CSI's actual
results may differ materially from the expected results discussed in the
forward-looking statements contained in this release. The
forward-looking statements made in this release are made only as of the
date of this release, and CSI undertakes no obligation to update them to
reflect subsequent events or circumstances.