ReWalk shares dive 19% after lackluster earnings report
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ReWalk's prototype for a system to help stroke patients walk.
Shares of Marlborough medical device maker ReWalk Robotics dropped 19 percent at Tuesday’s open after the company reported a second quarter loss of $5.8 million with $9.1 million in cash left on its balance sheet.
The company, which manufactures robotic suits to help stroke and paralysis victims rehab and walk again, said its full-year revenues are expected to be at the low end of its guidance of between $9 million and $11 million.
ReWalk reported net loss per share of 18 cents for the quarter and a 39 cent loss for the year, though both are nearly 100 percent improvements over the same periods last year.
The company placed 21 systems in the quarter compared to 23 in the same period last year.
The company increased its revenues slightly to $1.8 million but made little progress toward achieving profitability despite some important achievements.
In a statement, CEO Larry Jasinski commented on several catalysts to drive growth of the robotic suit systems, including a U.S. Department of Veterans Affairs program to expand access to ReWalk systems at 137 VA and private ReWalk training centers in the U.S. and a formal reimbursement code in Germany resulting in faster processing times and more referrals.
In addition, the company is underway with a clinical study at five leading stroke rehabilitation centers in the U.S.. A mid-2019 commercial launch of the Restore system is expected, pending U.S. and European clearances.
Despite those positives, shares dropped on the Nasdaq from Monday’s close of $1.08 to a low of 88 cents Tuesday.
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