Weak Guidance Takes Toll On Baxano Surgical Inc (NASDAQ:BAXS) Stock
Baxano Surgical Inc (NASDAQ:BAXS) reported its fourth quarter and full year 2013 results on 6th March after markets closed for the day. It reported that its revenue increased by 44.2 percent for the quarter in comparison to 4Q12. The $67.4 million market capped medical instruments and supplies maker also provided an average guidance for its 1Q14 operations. The dual announcements failed to impress the market. As a result, the stock got dragged down by 11.3 percent during trading on 7th March, leaving the stock trading 40 percent lower than its 52 week high price point.
The Raleigh based firm reported that its 4Q revenue came in at $6 million, driven primarily by the sustained 7 percent growth seen in its iO-Flex product revenue. In the reporting quarter, the firm also announced the launch of a new line of product called the iO-Tome, which is expected to contribute revenue in FY14.
In spite of the increase in revenue, the net loss per share for the 4Q came in at 19 cents. The revenue surge in the quarter was driven by growth in its domestic market, which contributed $5.1 million which grew by close to 80 percent in 4Q13, as against its revenue from 4Q13, which dropped to $0.8 million from $1.1 million it had managed to earn in 4Q12.
Commenting about the strong close to the full year 2013 operations, Baxano Surgical Inc (NASDAQ:BAXS) President, Chief Executive Officer, Director Kenneth Realihas been quoted to have stated that, “In the fourth quarter we saw good sequential growth in our iO-Flex and VEO(R) product lines and early interest in our recently launched iO-Tome product. We have completed our merger integration activities and have put in place the foundational elements we believe are needed for growth and leadership in the minimally invasive spine market.”
Providing its guidance for its ongoing 1Q operations, Baxano Surgical Inc (NASDAQ:BAXS) has forecasted revenue to come in the range of $4.7 – $5.2 million which would be sequentially lesser than its 4Q13 revenue.