Why Are UpHealth Shares Trading Lower Today

The Audit Committee of the Board of Directors of UpHealth Inc UPH concluded that the Company's financial report in Form 10-Q for the three and nine-month periods ended September 30, 2021, should not be relied upon because of errors identified therein.
The Company is finalizing its financial results for Q4 FY21 and FY21 ended December 31, 2021. Consequently, the results presented herein are in a range format.
The Company has also determined that it will file for an extension to file its Annual Report on Form 10-K for the year ended December 31, 2021, and expects to file it by April 15, 2022.
UpHealth states Q4 FY21 sales of $33.9 - $41.7 million, with gross margin expansion to 36% - 38%.
Q4 sales were impacted by one-time factors, including a contract totaling $14.3 million.
UpHealth decided to redeploy primary care digital dispensaries to India, a primary market, for higher gross margin revenues.
Additionally, revenues were impacted by $8.3 million of Integrated Care Management revenue that the Company will recognize in 2022.
Q4 FY21 adjusted EBITDA of $(7) million - $(12.5) million was impacted by $3.9 million in write-offs of receivables and prepaid expenses.
Guidance: UpHealth expects FY22 sales of $205 - $233 million, a 38-56% growth rate, gross margins of 42% to 43%, and adjusted EBITDA of $14 to $19 million.
Price Action: UPH shares are down 29.6% at $1.40 during the market session on the last check Wednesday.