Cardiovascular Systems posts net loss in fourth quarter of fiscal year 2016

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For the fourth quarter of fiscal year 2016, Cardiovascular Systems posted a net loss of $4.9 million and $48.4 million in revenue, nearly identical to the same period last year.

After the company released its earnings report on the afternoon August 3, its common stock price increased from $19.68 per share to $22.00 on the morning of August 4.

During the quarter, coronary device revenues increased 20 percent from last year, peripheral device remained similar and other revenue declined by $1.5 because Cardiovascular Systems terminated an agreement to distribute Asahi guide wires on June 30, 2015.

Despite the net loss, Cardiovascular Systems’s profit increased 44 percent from the same period last year, when it lost $8.7 million. The company had an adjusted earnings before interest, taxes, depreciation and amortization loss of $1.4 million during the fiscal fourth quarter of 2016 compared with a loss of $4.1 million last year.

For the full year, the company’s revenue was $178.1 million and net loss was $56.1 million, which were decreases from $181.5 million in revenue and a net loss of $32.8 million in 2015.

In June, Cardiovascular Systems agreed to pay $8 million to settle allegations that the company paid kickbacks to physicians to convince them to use its medical devices. Under the agreement, Cardiovascular Systems paid $3 million in July and will pay the remaining balance in 11 quarterly payments beginning in January 2017.

Cardiovascular Systems also announced George Adams, MD, would present 30-day results from the Liberty 360 study on Aug. 11 at the Amputation Prevention Symposium in Chicago. The trial enrolled patients with symptomatic peripheral artery disease and evaluated all commercially available technologies, including the company’s Diamondback 360 peripheral orbital atherectomy system.

For the first quarter of fiscal year 2017, Cardiovascular Systems expects revenue in the range of $48.0 million to $49.5 million, a net loss of $5.8 million to $6.7 million and operating expenses to be approximately 4 percent higher than the fourth quarter of 2016.