APYX - Apyx crashes 64% as Q3 sees prolonged impact on Advanced Energy products; cuts outlook
Apyx Medical ( NASDAQ: APYX ) stock slumped ~64% on Thursday after Q3 results missed estimates and the company lowered its FY22 outlook.
Net loss widened to -$5.8M, compared to -$4.23M in Q3 2021. Total revenue fell -23% Y/Y to $9.11M.
Revenue from Advanced Energy declined -31.3% Y/Y to $7.08M, while OEM segment sales increased 34% Y/Y to $2.03M.
"Our Advanced Energy revenue in the third quarter came in below our expectations, due primarily to the continued businesses disruption resulting from the Medical Device Safety Communication that was posted on March 14th," said President and CEO Charlie Goodwin.
In March, the U.S. Food and Drug Administration (FDA) had flagged a safety issue linked to the company's Advanced Energy products.
Goodwin added that, "This disruption continued to impact global sales of our Advanced Energy products throughout the quarter, and its impact was ultimately more pronounced and prolonged than we had anticipated."
Operating expenses decreased 4% Y/Y to $11.5M.
Adjusted EBITDA loss was -$3.88M, compared to -$2.73M in the prior year period.
Outlook :
"We have revised our financial guidance for 2022, which now reflects the softer-than-anticipated sales results we experienced in the third quarter, and assumes a more gradual pace of recovery in business trends during the fourth quarter compared to our prior guidance range," added Goodwin.
Apyx now expects 2022 total revenue to be in the range of $44.8M to $47.9M (revenue was $48.5 in 2021), compared to prior outlook range of $51M to $56.4M); consensus $53.47M.
Net loss attributable to stockholders is now expected between -$22M and -$19.9M (prior outlook -$20.1M to -$16.6M).
Adjusted EBITDA loss in the range of -$14.1M to -$11.9M (prior range -$11.8M to -$8.2M).
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Apyx crashes 64% as Q3 sees prolonged impact on Advanced Energy products; cuts outlook