- The Audit Committee of the Board of Directors of UpHealth Inc (NYSE:UPH) concluded that the Company's financial report in Form 10-Q for the three and nine-month periods ended September 30, 2021, should not be relied upon because of errors identified therein.
- The Company is finalizing its financial results for Q4 FY21 and FY21 ended December 31, 2021. Consequently, the results presented herein are in a range format.
- The Company has also determined that it will file for an extension to file its Annual Report on Form 10-K for the year ended December 31, 2021, and expects to file it by April 15, 2022.
- UpHealth states Q4 FY21 sales of $33.9 - $41.7 million, with gross margin expansion to 36% - 38%.
- Q4 sales were impacted by one-time factors, including a contract totaling $14.3 million.
- UpHealth decided to redeploy primary care digital dispensaries to India, a primary market, for higher gross margin revenues.
- Additionally, revenues were impacted by $8.3 million of Integrated Care Management revenue that the Company will recognize in 2022.
- Q4 FY21 adjusted EBITDA of $(7) million - $(12.5) million was impacted by $3.9 million in write-offs of receivables and prepaid expenses.
- Guidance: UpHealth expects FY22 sales of $205 - $233 million, a 38-56% growth rate, gross margins of 42% to 43%, and adjusted EBITDA of $14 to $19 million.
- Price Action: UPH shares are down 29.6% at $1.40 during the market session on the last check Wednesday.
