T2 Biosystems Stock Continues To Fall After-Hours: Here's Why

T2 Biosystems, Inc. TTOO shares are trading lower in Thursday's after-hours session after the company reported preliminary third-quarter results.

What To Know: The company stated that it achieved preliminary third-quarter total revenue of $1.5 million, a decrease of 60% compared to the prior year period. The decrease is mainly attributed to a $1.0 million decline in BARDA revenue.

"Our third quarter results were highlighted by the receipt of FDA 510(k) clearance for the T2Biothreat Panel and 510(k) submission to add Acinetobacter baumannii detection to the FDA-cleared T2Bacteria Panel, which are both intended to create growth opportunities by expanding the test menu on our FDA-cleared T2Dx Instrument," stated John Sperzel, Chairman and CEO of T2 Biosystems.

"Operationally, we have taken aggressive measures to address the sepsis test backorder, we have significantly improved our balance sheet by raising capital and by reducing our debt, and we have taken steps to maintain our Nasdaq listing, all of which will allow the Company to further advance our corporate priorities."

The after-hours drop in price follows a rough regular trading session for the stock, down 43.9% at the close of the market due to the announcement of a reverse stock split, effective today.

Related Link: Why SMART Global Holdings Stock Fell After-Hours

TTOO Price Action: Shares of TTOO were down 8.05% at $0.16 at the time of publication, according to Benzinga Pro.

Image by Konstantin Kolosov from Pixabay