Avita shares jump as full-year guidance reaffirmed
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More news: Shares in Avita Medical jumped 7.8% to $2.75 after the medical technology company reported slower revenue growth for its first quarter but reaffirmed its full-year guidance for revenue.
Shares in the company hit a 52-week low on Monday following a downgrade in revenue guidance last month.
Avita Medical revenue growth slows, keeps FY guidance
The news: Medical technology company Avita has reported slower revenue growth for its first quarter amid slower demand for its spray-on skin repair products rising operating expenses.
The numbers: First quarter net loss doubled from a year ago to USD18.7 million ($28.3 million), while commercial revenues were up 5.8% to USD11.1 million. It said operating expenses jumped to USD26.8 million, from USD19.4 million due to a rise in sales and marketing expenses.
The context: First quarter results were in line with the company’s revised guidance in April. The Nasdaq and ASX-listed firm reaffirmed its full-year guidance for revenue to be at the lower end of the USD78.5 million to USD84.5 million range.
It had downgraded the guidance last month due to a slower-than-expected conversion rate of new accounts for its expanded label of full-thickness skin defects.
What they said: "We believe we have taken the necessary measures to invigorate our burns business and improve our commercial sales process to return to sustained growth," chief executive Jim Corbett said in an announcement to the ASX.
The source: ASX announcement
