TranS1 lowers 2Q revenue outlook on sales issues

Medical device maker TranS1 Inc. said Wednesday its second-quarter revenue will fall short of the company's prior outlook, because of sales force turnover and related issues.

The company now expects revenue between $5.9 million and $6 million, down from prior guidance of $6.3 million to $6.5 million.

Analysts polled by Thomson Financial expect revenue of $6.5 million, on average.

TranS1 makes surgical implants for degenerative disc disease, which affects the lower spine.

"Our results this quarter were impacted by sales force turnover and the promotion of some high-performing direct sales people into regional management roles," said Rick Randall, president and chief executive, in a statement. "Additionally, approximately 50 percent of our direct sales personnel have been on the job for six months or less and thus are not seasoned in their territories."

The company expects to release second-quarter results on July 31.

Shares of TranS1 plunged $2.69, or 18.9 percent, to $11.56 in after-hours trading, after closing the regular trading session at $14.25.