Conformis, Inc has reported preliminary and unaudited revenue results for the second quarter ended June 30, 2020. Conformis will host the Earnings Call on August 5, 2020.
According to the preliminary results the company total revenue remained approximately $19.5 million, which comes with 1% decline compared to second quarter total revenue. Its royalty revenue was $9.7 million which includes a royalty settlement of $9.6 million. The company reported the product revenue of approximately $9.7 million which is 50% less than the prior year second quarter product revenue.
Being medical technology company its U.S. product revenue showed decline of 52% as compared to same quarter of previous year. While rest product revenue across the world remained approximately $1.4 million, showing a decline of 34% year-over-year and a decline of 33% on a constant currency basis.
President and Chief Executive Officer Mark Augusti expressed the fact that the “novel coronavirus (COVID-19) pandemic” impacted the second quarter company’s business results. However, the company saw a “fairly quick resumption” of scheduled orthopedic procedures in last two months of second quarter. While the company anticipates that the numbers will stay under pressure for the rest of the year.
He further commented, “In order to better describe the revenue performance underlying the quarter Conformis is providing the following monthly global product revenue year-over-year growth rates: April down 94%, May down 39%, and June down 9%. It should be noted that we continue to withhold any comment about future performance. Clearly there was some correlation with the resumption of elective procedures; however, we cannot predict the pace of further resumption, the risk of further shutdowns in procedures and the geographic and regional uncertainty.”
Conformis also announced the amendment in the Credit Agreement related to the balancing out the impact of economic crisis on Conformis’ business amid the COVID-19 pandemic.
Mr. Augusti said, “I am pleased that we have been able to come to agreement that better reflects current economic realities” and that “This is an indication of the good and cooperative partnership we have with Innovatus.”
Conformis will host earnings call via a webcast and conference call on Wednesday, August 5, 2020, at 4:30 p.m. Eastern Time to discuss its financial results for the second quarter ended June 30, 2020. Investors would be able to attend the webcast live at https://edge.media-server.com/mmc/p/phu3zyop.