TTOO - T2 Biosystems stock dips on revised annual guidance executes reverse stock split

T2 Biosystems ( NASDAQ: TTOO ) reported prelim Q3 revenue of ~$3.7M vs. consensus of $7.19M, down 50% year-over-year due to by lower sales of COVID-19 tests and reduced BARDA revenue offset by increased sepsis test sales.

It also updated its 2022 outlook to reflect a moderated growth in sepsis and related product sales, and reductions in BARDA revenue and COVID-19 sales.

Full year 2022 total revenue is now estimated between $22M and $23M vs. consensus of $28.51M, compared to $28M to $31M previously.

The company also expects to close 50 to 55 T2Dx Instrument contracts in 2022, compared to 60 to 70 previously.

Shares are down 6% premarket

Additionally, the company executed a reverse stock split of its common stock at a ratio of 1 post-split share for every 50 pre-split shares.

The reverse stock split will become effective today, October 12, 2022, with the common shares commencing trading on a split-adjusted basis when the market opens on October 13, 2022 under the existing trading symbol, "TTOO."

As a result of the reverse stock split, each 50 shares of the company's common stock outstanding and held of record by each stockholder will be automatically reclassified and combined into one validly issued, fully paid and non-assessable share of common stock. The number of authorized shares of the company's common stock or the par value of the common stock will not be affected by the move.

The reverse stock split is primarily intended to bring T2 Biosystems ( TTOO ) into compliance with the minimum bid price requirement for maintaining its listing on the Nasdaq Capital Market

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