Avinger announces business update; shares slip 16% premarket

|About: Avinger (AVGR)|By:, SA News Editor

Avinger (NASDAQ:AVGR) provides an update on several aspects of its business, including preliminary results for Q1, an organizational realignment, and continued progress on product development and clinical initiatives.

Avinger expects total revenue of ~$3.5M for Q1, revenue from disposable devices is expected to be $2.9M. Revenue related to Lightbox imaging consoles is expected to be $0.6M

During Q1, the installed base of Lumivascular accounts increased by five and ended the quarter at 161 accounts.

Avinger’s 2017 priority is to complete the next generation Pantheris projects, which are expected to improve product reliability and usability and expand the Company’s market opportunity. In addition, the Company expects to begin enrollment in an in-stent restenosis trial for Pantheris.

The Company is reducing its workforce by ~33% to a total of 131 full-time employees. The Company’s field sales personnel will be reduced to 32 down from 60 people as of December 31, 2016.

Based on the organizational changes and other expense reduction measures, the Company expects cash utilization to decrease to ~$7M per quarter by 2H 2017, compared to an average of $13.5M per quarter in 2016 and $13.1 million in the first quarter of 2017.

Shares are down 16% premarket.