Acutus Medical Announces Restructuring and Preliminary, Unaudited Fourth Quarter and Full Year 2021 Revenue
19 January 2022 - 10:00PM
Acutus Medical, Inc. (“Acutus” or the “Company”) (Nasdaq: AFIB), an
arrhythmia management company focused on improving the way cardiac
arrhythmias are diagnosed and treated, today announced a corporate
restructuring as well as its preliminary unaudited revenue for the
quarter and full year ended December 31, 2021.
Corporate Restructuring“We have undertaken a
detailed review of our strategic priorities, the external
environment, and cost structure and are restructuring the Company
to sharpen our focus and strengthen our financial position,” said
Vince Burgess, President & CEO. “While challenging, this
restructuring is a critical step in positioning Acutus for the
future, and we are committed to treating impacted employees with
respect and support through this period of change.”
As part of the restructuring, the Company will prioritize
maximizing console utilization and procedure volume growth in
targeted geographic regions as well as a more focused scope of
product development initiatives. To align resources with current
strategic direction, the Company has undertaken a planned reduction
in force (RIF) and is implementing additional cost reduction
measures. These actions are expected to result in annualized
operating expense savings of $23-25 million compared to 2021. The
Company expects that operating expense savings, cost reductions in
manufacturing operations, and working capital improvements will
result in a 30-40% reduction in quarterly cash burn exiting 2022
compared to 2021. Based on the timing of notifications under the
Worker Adjustment and Retraining Notification (WARN) Act, the
Company expects to start realizing the benefit of its restructuring
plan starting late in the first quarter of 2022.
Mr. Burgess concluded “This restructuring is one component of
our efforts to strengthen the Company’s foundation. We expect to
emerge from these actions as a stronger organization and
better-positioned to achieve our mission and strategic objectives.
We are making good progress on the clinical and product development
front, and we are confident that our strategic realignment of
priorities and resources will position us for long-term growth. We
are planning to share more detail on our renewed focus and
priorities on our earnings call in March.”
Preliminary Unaudited Fourth Quarter and Full Year
Revenue The Company expects fourth quarter 2021 revenues
of approximately $4.2-4.4 million compared to $2.6 million in the
fourth quarter of 2020. Full year 2021 revenues are expected to be
in a range of $17.1-17.3 million compared to $8.5 million for the
full year 2020 and within the guidance range provided on the third
quarter 2021 earnings call. Year-over-year growth in the fourth
quarter and full year was driven by increased procedure volumes,
new product adoption, and higher capital sales.
Management continues to view the current COVID-19 situation as
being fluid, and the potential impact on the Company’s business
from hospital and government actions in response to potential
resurgences in COVID-19 cases, COVID-19-related hospital
admissions, restrictions on lab access and new technology
assessments, and hospital staffing shortages are all factors that
could influence near-term performance.
The Company will provide further details on its fourth quarter
earnings call currently scheduled for March 10, 2022.
WARN ActThe WARN Act requires employers to
provide sixty (60) days advance notice to employees and certain
government entities before conducting any mass layoff, relocation,
or termination that affects more than fifty (50) full-time
employees and equivalents. The Company notified employees and
required government authorities on Thursday, January 13, 2022.
About Acutus Medical, Inc.Acutus is an
arrhythmia management company focused on improving the way cardiac
arrhythmias are diagnosed and treated. Acutus is committed to
advancing the field of electrophysiology with a unique array of
products and technologies which will enable more physicians to
treat more patients more efficiently and effectively. Through
internal product development, acquisitions and global partnerships,
Acutus has established a global sales presence delivering a broad
portfolio of highly differentiated electrophysiology products that
provide its customers with a complete solution for catheter-based
treatment of cardiac arrhythmias. Founded in 2011, Acutus is based
in Carlsbad, California.
Caution Regarding Forward-Looking
StatementsThis press release includes statements that may
constitute “forward-looking” statements, usually containing the
words “believe,” “estimate,” “project,” “expect” or similar
expressions. Forward-looking statements inherently involve risks
and uncertainties that could cause actual results to differ
materially from the forward-looking statements. Factors that would
cause or contribute to such differences include, but are not
limited to, the Company’s ability to continue to manage expenses
and cash burn rate at sustainable levels, continued acceptance of
its products in the marketplace, the effect of global economic
conditions on the ability and willingness of customers to purchase
the Company’s systems and the timing of such purchases, competitive
factors, changes resulting from healthcare policy in the United
States and globally, including changes in government reimbursement
of procedures, dependence upon third-party vendors and
distributors, timing of regulatory approvals, the impact of the
coronavirus (COVID-19) pandemic and Acutus’ response to it, and
other risks discussed in the Company’s periodic and other filings
with the Securities and Exchange Commission. By making these
forward-looking statements, Acutus undertakes no obligation to
update these statements for revisions or changes after the date of
this release, except as required by law.
Investor Contact: |
Media Contact: |
Caroline Corner |
Holly Windler |
Westwicke ICR |
M: 619-929-1275 |
D: 415-202-5678 |
media@acutusmedical.com |
caroline.corner@westwicke.com |
Acutus Medical (NASDAQ:AFIB)
Historical Stock Chart
From Feb 2024 to Mar 2024
Acutus Medical (NASDAQ:AFIB)
Historical Stock Chart
From Mar 2023 to Mar 2024