Conformis reported $17.3 million for third quarter total revenue, down 40 percent for the same period last year.
Five things to know:
1. The company's total gross profit decreased $12.1 million to $7.6 million and net loss increased 17 percent to $8.7 million year-over-year.
2. Product revenue decreased seven percent to $17.1 million compared to the third quarter of last year.
3. Conformis CEO Mark Augusti attributed the drop in revenue to Aetna insurance coverage denials.
4. Total operating expenses decreased 44.8 percent to $14.5 million year-over-year, driven by non-cash write-offs relating to impairment of goodwill and unused manufacturing equipment as well as reductions in personnel costs, marketing programs and patent litigation expenses.
5. The Aetna denials had a significant financial impact on third quarter revenues, but Mr. Augusti took positives from the "execution of the Stryker transaction for patient specific instrumentation" and the "limited launch of our new Identity total knee system."