Acutus Medical Plans Job Cuts; Preliminary Q4, FY21 Sales Exceed Estimates

Acutus Medical Inc AFIB will cut its workforce and implement additional cost reduction measures as a part of corporate restructuring. 

• The company expects the actions to result in annualized operating expense savings of $23 million - $25 million compared to 2021. 
• The company foresees operating expense savings, cost reductions in manufacturing operations, and working capital improvements to result in a 30-40% reduction in quarterly cash burn exiting 2022 compared to 2021. 
• Acutus expects to start realizing the benefit of its restructuring plan starting late Q1 of 2022.
• The company anticipates Q4 FY21 revenues of approximately $4.2 million - $4.4 million compared to $2.6 million a year ago and the consensus of $3.99 million.
• For FY21, the company expects sales of $17.1 million -$17.3 million (vs. the consensus of $16.91 million) compared to $8.5 million for FY20. The company's previous FY21 sales guidance was $17.0 million - $17.5 million.
• The company noted year-over-year growth in Q4 and FY21 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.
• Price Action: AFIB shares traded higher by 2.04% at $2.58 on the last check Wednesday.