Will Small Companies See a Bigger Impact from Hurricanes?

Cardiovascular Systems Inc. said Monday that its procedure volumes took a hit in the Houston, TX, and Florida markets, which account for more than 15% of the company’s revenue, in the aftermath of Hurricanes Harvey and Irma. To add insult to injury, the company reported that September is normally its strongest month for procedures within the quarter, which means the fiscal first quarter revenues are more heavily weighted in September.  The company is based in St. Paul, MN, but has a facility in Pearland, TX, near Houston. "As recovery progresses, we will closely monitor conditions and the anticipated impact on our business," said Scott Ward, the company's chairman, president, and CEO. "While these historic storms are affecting our near-term performance, they are not indicative of our long-term growth opportunity and continued market leadership position." Cardiovascular Systems makes the Orbital Atherectomy Systems for treating calcified and fibrotic plaque in arterial vessels throughout the leg and heart. The company said its product supply was not affected by the storms, even though the Pearland facility was closed for a week, but disruption at the rep, physician, and patient levels caused procedures to be delayed. The company anticipates these factors will reduce its first-quarter revenues below its previously-reported guidance range of $52.6 million to $53.6 million, but the full impact is not yet known. The company said it will revise its revenue guidance after it ha...
Source: MDDI - Category: Medical Devices Authors: Tags: MD & M Minneapolis Medical Device Business Source Type: news