Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.
What: Shares of AtriCure (NASDAQ:ATRC), a global medical device company that focuses on providing cardiac surgical ablation systems, jumped as much as 14% after reporting better-than-expected third-quarter results and boosting its full-year forecast.
So what: For the quarter, AtriCure delivered a 24.8% increase in revenue to $20.1 million -- $15.8 million of that coming from the U.S. -- as its adjusted loss per share narrowed to $0.13 from $0.16 in the year-ago period. Gross margin also improved by 130 basis points to 72.9%. Comparatively speaking, Wall Street had been forecasting just $18.1 million in revenue and a loss of $0.16 per share. Looking ahead, AtriCure's management boosted its full-year revenue guidance higher to $80 million from a previous outlook of $77 million to $78.5 million and is projecting adjusted EBITDA losses of $4.5 million to $5.5 million including the negative impact of the medical device excise tax.
Now what: Unfortunately, I'm witnessing more and more instances recently of very intriguing companies on paper that are still years away from producing profitable results. AtriCure certainly has a diverse product lineup that could definitely benefit from further international exposure, but it's likely two years or more away from achieving breakeven results. Until I see discernible improvement in AtriCure's bottom line, I plan on remaining nothing more than a spectator.
Fool contributor Sean Williams has no material interest in any companies mentioned in this article. You can follow him on CAPS under the screen name TMFUltraLong, track every pick he makes under the screen name TrackUltraLong, and check him out on Twitter, where he goes by the handle @TMFUltraLong.
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