Boston Scientific (NYSE: BSX) fixed its paperwork problem with the Food and Drug Administration earlier this month, but the resulting recall took its toll on first-quarter profits nonetheless. The company's president and CEO, Ray Elliott, dubbed this a "challenging" quarter. Yeah, I'd call that an understatement.

The inability to sell some versions of its heart defibrillators for a couple of weeks cost the company $72 million in revenue last quarter. It'll cut into second-quarter revenue as well, because Boston Scientific didn't get an OK from the FDA to start selling the products again until the middle of this month. As a result, the company reduced its revenue guidance by $500 million.

But the long-term effect should have investors truly worried. Will doctors trust the company after its mistake? Sure, this wasn't a quality issue. But if a company can't file the proper paperwork with the FDA, will doctors feel confident implanting its devices in patients? Taking the things out isn't very easy, you know.

All told, Boston Scientific says it lost 8 percentage points of market share to rivals St. Jude Medical (NYSE: STJ) and Medtronic (NYSE: MDT) last quarter, and it expects to lose another four points in the second quarter. The company expects to pare that 12-point loss in market share down to just five points by year end, but that's just optimism, as far as I can tell.

While the company is wooing back electrophysiologists, what will happen to its other major segment, drug-eluting stents? Sales of the tiny mesh devices were down 9% in the first quarter, and down 12% on a constant currency basis. Sales could slip further if Medtronic, Abbott Labs (NYSE: ABT), and Johnson & Johnson (NYSE: JNJ) decide to make a push in the segment while management is distracted.

Might Boston Scientific be a bad-news buy? Sure, the company could turn things around, and shareholders and management could live happily ever after. But, sometimes past performance does indicate future returns. Until management demonstrates a track record of success, I'm staying far away.