The Bedford, Mass.-based company swung to a net loss of -$6.7 million, or -46¢ per share, on sales of $21.3 million for the 3 months ended March 31, down -9.1% compared with the same period last year.
Earnings per share were -46¢, behind consensus on The Street, where analysts were looking for sales of $24.3 million.
The company cited a voluntary recall of certain lots of its Hyalofast, Hyalograft-C and Hyalomatrix products as the reason for its year-over-year decline in sales. Anika initiated the recall following internal quality testing that found that the products were not maintaining “certain measures” throughout their entire shelf life, the company revealed.
The voluntary recall took a $1.1 million hit to the company’s product revenue results for the first quarter. Anika said it expects to have the problem fixed by the end of the year.
“This voluntary recall is based on the company’s commitment to the highest standards of quality for which we are known around the globe,” president & CEO Joseph Darling said in prepared remarks. “While there is no indication of any impact on the safety or efficacy of the product at this time, we cannot accept any deviation from our stringent quality measures. Our quality and engineering staff are working diligently to resolve the issue in order to bring these products back into the hands of surgeons who have used the products to treat patients in need.”
ANIK shares were trading at $40.00 apiece today in premarket activity, down -13.4%.