Cardiovascular Systems shares steady on Q2 beat

Shares in Cardiovascular Systems (NSDQ:CSII) have stayed steady today after the medical device maker posted 2nd quarter results which topped expectations on The Street.

The St. Paul, Minn.-based company posted profits of $1 million, or 3¢ per share, on sales of $50 million for the 3 months ended December 31, turning around its bottom-line from losses of $15.2 million during the same period last year, while sales grew 20.9%.

Earnings per share were well above The Street’s expectations, which expected to see losses of 6¢ per share and sales of $49.6 million.

“Our revenue gains demonstrate that we are continuing to make progress in the transformation of our sales organization that began last year. At the same time, our cost realignment initiatives are driving us toward sustainable profitability. This resulted in our first quarterly profit and substantial positive cash flow this quarter. While we still have much to do, we are encouraged by our progress to date and look forward to building on our success, as we serve the large and growing unmet medical need for treating arterial calcium,” CEO & prez Scott Ward said in a prepared statement.

For the 3rd quarter, the company expects to see revenue between $50.5 million and $51.5 million, with net losses between $1.2 million and $1.8 million with losses per share between 4¢ and 6¢.

“We anticipate 3rd-quarter progress in revenue growth for both of our atherectomy franchises as our sales organization continues to refine its resource allocation, gain experience and clinical acumen, and build physician relationships. We also expect our focus on cost management to maintain strong gross margins and allow us to achieve sustainable profitable growth in the future, though quarterly variations will occur due to timing of expenses and projects. Operating expenses benefited from that timing in second quarter; however, we are expecting an increase in the 3rd quarter to a more normalized level,” Ward said in a press release.

Shares in CSII have are up less than 0.1%, trading at $26.40 as of 10:40 a.m. EST.

Leerink Partner analyst Danielle Antalffy saw the quarter as a positive for the company as it looks at long-term growth.

“Given where CSII is in its recovery ramp, this could give some investors pause. But if shares are weak, we’d recommend buying on weakness, as we continue to believe CSII represents a sustainable mid-to-high teens growth story for the next few years – at least – with a faster track to profitability than originally expected,” Antalffy wrote in a letter to investors.

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