The problem here that may make Hansen all bark and no bite is that the Chief Technology Officer is Rob Younge and the President & CEO is Frederic Moll, who are both co-founders of Intuitive Surgical, Inc. (NASDAQ: ISRG). That company has also peaked and come under pressure of its expensive DaVinci robotic surgical system due to soft finances at many of the nation’s hospitals. When you see the guidance, you’ll understand why this may be all bark.
The company expects second quarter revenues to be in the range of $3.1 million to 3.3 million, short of the $8.8 million expected by analysts. The company said it will give an updated outlook for 2009 and complete second quarter financial results in its regularly scheduled 2009 second quarter press release and conference call in late July or early August.
Hansen medical is becoming one of the device makers which is now an embarrassment for analysts to cover. When you have the guys that led the great and famous Intuitive Surgical and then they come out with such a low-selling flop like this you have to wonder. “Play it again, Sam.” is a line we all know rather well. But sometimes playing-it-again ends up like the kids game where “Do-over!” is allowed. The 2007 revenues were $10.08 million and the 2008 revenues were $30.23 million. Before this nasty warning, estimates for 2009 and 2010 were $37.8 million and $56.26 million respectively. It is safe to assume that those estimates will be coming down to earth faster than a meteor.
There is another issue to address here. The company was also expected to already lose money in 2009 and 2010. Its own organic cash flows have been going to the wrong way. It is probably too soon to begin questioning its viability. But its credibility is another issue entirely.
Shares are down over 30% pre-market and are trading at $3.18. Its 52-week trading range is $2.65 to $20.20.
Jon C. Ogg
July 7, 2009
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