Conformis expects 50% drop in Q2 product revenue

Joint replacement implant maker Conformis (NSDQ:CFMS) said today that it anticipates a COVID-19-influenced 50% year-over-year drop in second-quarter product revenue.
Releasing its preliminary results for the quarter ended June 30, the Billerica, Mass.-based company projected total revenue of $19.5 million for the quarter, which is down -1% year-over-year on a reported and constant currency basis. About half of that is made up of approximately $9.7 million in royalty revenue, including a royalty settlement of $9.6 million.
The other half was provided by $9.7 million in product revenue, which represents a 50% drop year-over-year. That total includes U.S. product revenue of approximately $8.3 million, which is down 52% from last year, and $1.4 million from the rest of the world, which is down 34% and 33$ on a reported basis and constant currency basis, respectively.
In March, Conformis announced that it was withdrawing its 2020 financial guidance while furloughing approximately 80 employees as a result of the COVID-19 pandemic and the deferral of elective procedures. In April, the company announced that it received more than $4.7 million through the U.S. Small Business Administration’s Paycheck Protection Program.
When reporting first-quarter losses in May, Conformis president & CEO Mark Augusti suggested that the second quarter would be heavily affected by the pandemic, even as elective procedures began to restart.