Thursday’s trading session was highly volatile and at one point all three major indices shed more than one percent each. Although stocks did stage a rebound, the trading session saw more stocks trading in the red than green.
Needless to say few investors escaped Thursday’s trading session richer than they were before the day started. Unfortunately for shareholders who own Fluidigm (NASDAQ: FLDM), Thursday will prove to be a day they wish to forget as both stocks shed more than one quarter of their entire value.
Fluidigm is a $130 million company that manufactures and markets technologies and life science tools to better the industrial applications of genomics.
The company reported its preliminary third quarter results after Wednesday’s market close which fell short of what analysts had already estimated. Specifically, total revenue for the quarter is expected to be $22.2 million, notably below the $29.25 million Wall Street analysts had hoped for.
The company’s outlook on Wednesday indicates continued weakness as a revenue of $22.2 million implies a 23 percent decrease from the same quarter a year ago. Fluidigm cited its revenue shortfall on a 39 percent decline in sales of instruments, primarily driven by poor sales of its Helios systems.
Moreover, Fluidigm announced it is suspending its full year 2016 guidance and will provide a detailed overview of its business and outlook in its earnings report which is scheduled for November 3, 2016.
Management previously guided its full year fiscal 2016 revenue to fall in a range of $124 million to $128 million.
“We are exceedingly disappointed that our third quarter financial results did not meet our expectations. Although lower-than-expected sales of Helios systems contributed a significant portion of the overall shortfall, we have already seen a number of those anticipated sales close or progress in the fourth quarter,” said Gajus Worthington, Fluidigm’s chief executive officer. “We are addressing the underlying issues impacting our performance, and continue to take actions to improve our business and return to growth.”
This isn’t the first time in recent memory the company disappointed the Street.
Back on August 4, Fluidigm reported its second quarter earnings and said it lost $0.64 per share on revenue of $28.16 million – short of the $0.58 per share loss and $29.6 million Wall Street analysts were expecting.