Wall Street hunted down
Thursday after the drug developer slashed fourth-quarter guidance.
The Redwood City, Calif., company made $6.7 million, or 26 cents a share, for the quarter ended Sept. 30, reversing the year-ago loss of $1.4 million, or 6 cents a share.
Revenue rose 49% from a year ago to $53.8 million.
Analysts surveyed by Thomson Financial were looking for a 12-cent profit on sales of $54 million.
"Our financial results for the quarter -- including our second consecutive quarter of profitability on a GAAP basis -- speak not only to the continuing strong market presence of our SilverHawk device, but also the success of our collaboration with Merck, with whom we announced an expanded agreement during the quarter," said CEO John Simpson.
The company expects to lose 5 to 9 cents a share for the fourth quarter on revenue of around $55 million.
Analysts were looking for a 26-cent profit on revenue of $64 million.
Shares slumped $7.33 to $28.58.