Amid Dwindling Quarterly Sales, Sema4 Announces More Layoffs

Sema4 Holdings Corp SMFR reported Q2 revenues of $36.2 million compared to $47.0 million a year ago.
Testing volumes on a reported basis were up 63% Y/Y, with 117,838 tests resulting (excluding COVID-19 tests).
Sema4 reported a Q4 Basic EPS loss of $(0.25). The company held $285 million in cash and equivalents.
Restructuring: The company is on track to deliver its previously announced cost savings target of approximately $50 million in 2022.
With additional initiatives underway, the company will be on target to achieve over $150 million in annualized savings and approximately $200 million in cumulative savings by the end of 2023.
Sema4 eliminated approximately 250 positions, representing approximately 13% of its workforce, and exited the somatic tumor testing business.
Guidance: Sema4 expects FY22 revenues of $245-$255 million, below the consensus of $305.6 million and previous guidance of $305-$315 million.
The guidance includes a $24 million reduction in revenue due to the estimated change and a more conservative outlook on volumes and pricing trends within reproductive health product lines.
The company expects an adjusted gross margin of 4-9%, far below over 20% expected earlier.
Price Action: SMFR shares traded 28.5% lower at $1.72 on the last check Tuesday.