Hologic sees Q4 EPS at the low end of its previous view

On August 13, Hologic made a statement describing the decision by its Cynosure division to suspend marketing and distribution of its TempSure Vitalia handpieces and single-use probes, and to ask customers to return any Vitalia handpieces and unused probes they had purchased. Cynosure had launched the Vitalia handpiece and probe under an FDA 510k clearance and had been marketing the device for heating of vaginal tissue.”This decision was made in response to a public statement made by the FDA and letters it sent to Cynosure and other medical aesthetics companies expressing concerns regarding “vaginal rejuvenation” procedures using energy-based devices. Cynosure received such a letter relating to its MonaLisa Touch laser,” said the company. The company is now providing an update on the financial impact of its actions in advance of meetings with investors at the Morgan Stanley 16th Annual Global Healthcare Conference later this week.The company now expects Cynosure revenue in the current fourth quarter of fiscal 2018 to be approximately $15M less than previously forecast. However, Hologic is reaffirming its financial guidance provided on July 31.Hologic continues to expect revenue in the fiscal fourth quarter to be in the range of $800M- $815M. “Since refunds and rebates related to TempSure Vitalia will be recorded as reductions to revenue, which reduce operating income on a dollar-for-dollar basis, the company now expects earnings per share in the fiscal fourth quarter to be at the low end of its previous GAAP and non-GAAP guidance ranges.”
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