Organovo Holdings Preliminary Fiscal Q2 Sales Slip From Year Ago & Lag Forecast

Organovo Holdings (ONVO) reported late Wednesday preliminary fiscal Q2 total revenue is expected to be between $1.3 million and $1.4 million. At the midpoint, this result reflects a 2% decrease from a year ago and a 36% surge sequentially. The average analyst forecast for the sales is $1.46 million.

Shares gained 1.5% in after-hours trading.

The company said in a statement it sees a strong possibility of one or more of its clients implementing its platform for larger, routine-use applications by the end of its current fiscal year. “Our tissue systems continue to gain traction with biopharma clients and academic partners, with exceptionally strong engagement in developing disease models for compound screening,” CFO Taylor Crouch said.

Separately, the company announced a plan to restructure its business, reducing about 15 positions, or 13% of its overall workforce. It expects the workforce reduction will decrease operating costs by $1.3 million in fiscal 2018 and $2.7 million in fiscal 2019.

The reduction in future operating expenses is expected to improve the company’s fiscal 2018 negative adjusted EBITDA. The actions associated with today’s restructuring announcement are anticipated to be complete by the end of calendar-year 2017.

The company expects to release fiscal Q2 results on Nov. 9.

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