- CleanSpace (CSX) shares have plummeted today after the company announced its sales dropped over the March quarter
- The company has experienced lower sales over the past three months and is now expecting third-quarter sales to reach $7 million
- Over FY21’s first-half, CleanSpace tabled $39.7 million in revenue — five times greater than the $7.3 million result in the previous corresponding period
- CleanSpace sys the sales have been impacted by a sudden shift in the North American healthcare procurement market
- Given the uncertainty, CleanSpace will not provide guidance for the second half of 2021
- On the market this morning, CleanSpace is down 55.2 per cent and trading at $1.99 per share
CleanSpace (CSX) shares have plummeted today after the company announced its sales dropped over the March quarter.
The respiratory protection equipment developer has experienced lower sales over the current quarter following what it describes as an “exceptional” first-half. Third-quarter sales are now expected to reach $7 million.
Over FY21’s first-half, CleanSpace tabled $39.7 million in revenue — five times greater than the $7.3 million result in the previous corresponding period.
CleanSpace says a shift in the North American healthcare procurement market is impacting sales in the short-term. This has been driven by a number of factors, such as vaccine rollout programs, spending constraints and a backlog stockpiling of low-tech disposable masks.
Nevertheless, the company maintains it has a strong U.S. hospital pipeline supporting sales in the medium- and long-term.
Additionally, U.S. President Biden’s latest incentive package has introduced a platform for increasing the quality of personal protective equipment and pandemic preparedness for present and future COVID-19 outbreaks.
“With a large total addressable market of $6.3 billion and accelerated investment to penetrate that market, the business is confident it will return to the historical strong growth rates in the medium term,” CleanSpace told the market.
“Large employers, including hospital groups, have indicated high satisfaction with the product and we anticipate similar responses as our products roll out further,” he added.
Given the uncertainty, CleanSpace will not provide guidance for the second half of FY21.
On the market this morning, CleanSpace is down 55.2 per cent and trading at $1.99 per share at 12:11 pm AEDT.