Conformis Inc's (NASDAQ:CFMS) Q4 revenues decreased 8% Y/Y to $15.4 million, missing the consensus of $15.61 million.
- The decrease is primarily due to deferred and rescheduled elective surgeries due to increased COVID-19 cases associated with the Delta and Omicron variants.
- Product revenue reached $15.2 million, down 8% Y/Y.
- The total gross margin reached 38.6%, down 810 basis-point driven primarily by increased material, labor, other manufacturing costs, higher scrap and canceled case inventory expense, and reduced product selling price.
- Conformis posted an EPS loss of $(0.09), compared to $(0.08) a year ago and the consensus of $(0.07).
- Cash and equivalents totaled $100.6 million.
- Yesterday, Conformis said it would suspend all distribution operations to Russia and any Russian-based entities for its orthopedic medical devices.
- Additionally, it will no longer pursue future business development opportunities in Russia until further notice.
- Outlook: Conformis expects Q1 FY22 product revenue of $13.5 million - $14.5 million.
- The guidance reflects continued disruption of elective procedures caused by the Omicron variant and its potential impact on existing scheduled first quarter surgeries, staffing shortages in medical facilities, and manufacturing capacity challenges.
- Price Action: CFMS shares closed 10.9% lower at $0.60 during after-hours trading on Wednesday.
