Urohealth Discloses Loss of $89 Million; Slowdown Seen

After several delays, Urohealth Systems Inc. disclosed Tuesday that it lost $89 million in its last fiscal year, and surprised investors once again with disappointing sales projections for its first quarter this year.

The stock, which was under siege last week over concerns about the company’s finances, fell 98 cents a share, or more than 16%, to $5, a two-year low, in Nasdaq trading Tuesday. The stock has lost more than 37% of its value since June 23, when it closed at $8 a share.

In a conference call with analysts Tuesday, the Newport Beach-based medical products manufacturer said that, on the advice of auditors, it deferred $18 million in revenue for products that were shipped to distributors last year but were not sold before the fiscal year ended March 31.

However, it also disclosed that revenue for its first quarter, which ended Monday, also could fall short of analysts’ expectations, largely because of sluggish orders in the company’s surgical products division.

The company said first-quarter revenue could reach about $26 million at most. Analysts had expected about $30 million.

The company said it lost $89.2 million, or $4.59 a share, last year, compared with a loss of $30.2 million, or $2.03 a share, the previous year. The loss for the most recent fiscal year included $73.7 million in acquisition and restructuring charges.

Revenue increased 60.2% to $90.7 million last year, from $56.6 million, but the gain failed to satisfy analysts and investors.

Analysts said the stock’s low price could hamper Chief Executive Charles Laverty’s strategy of building the company by using its stock to purchase smaller biomedical companies offering a variety of medical and surgical products.