Fluidigm Corp. (NASDAQ: FLDM) announced preliminary results for its third quarter after the markets closed on Wednesday. As a result investors sent the shares sharply lower. However, it is worth noting that these results are not necessarily permanent but are really more of a guide for what to expect.
Estimated total revenue for the third quarter of 2016, based on management’s preliminary analysis, was roughly $22.2 million, a decrease of 23% from $28.6 million in the third quarter of 2015. The consensus estimate from Thomson Reuters called for $29.25 million in revenue.
In the third quarter, instrument revenue fell short of expectations and was about $9.2 million, representing a decline of 39% compared to the year-ago period. The shortfall from expectations in instrument revenue was driven primarily by lower-than-expected sales of Helios systems.
In light of this assessment of preliminary third-quarter results, Fluidigm suspended its full-year 2016 guidance. Consensus estimates for the full year called for a net loss of $2.32 per share and $125.26 million in revenue.
Looking ahead, the company will provide a detailed business review of its financial results when it reports third-quarter results after the close of the markets on Thursday, November 3.
Gajus Worthington, CEO of Fluidigm, commented:
We are exceedingly disappointed that our third quarter financial results did not meet our expectations. Although lower-than-expected sales of Helios systems contributed a significant portion of the overall shortfall, we have already seen a number of those anticipated sales close or progress in the fourth quarter. We are addressing the underlying issues impacting our performance, and continue to take actions to improve our business and return to growth.
Shares of Fluidigm traded down 23% to $5.43 Thursday morning, with a consensus analyst price target of $13.13 and a 52-week trading range of $4.84 to $12.09.