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What: Cardiovascular Systems (NASDAQ:CSII) fell almost 30% today after announcing disappointing earnings on Thursday after the bell.

So what: Revenue collected in the medical-device company's fiscal second quarter came in at $41.4 million, which was 3% below the low-end of management's guidance of revenue between $42.5 million to $44.0 million.

Normally, a slight miss in guidance wouldn't result in such a large decline, but this is the third quarter in a row that Cardiovascular Systems has missed its own guidance. While the first fiscal quarter saw year-over-year growth of 11%, and the prior quarter saw a 22% year-over-year increase -- despite the misses -- the second quarter's miss resulted in a 4% year-over-year decrease in revenue.

Scott Ward, CSI's chairman and interim president and CEO, blamed the lower-than-expected revenue on the company's expanded sales force that's selling both coronary and peripheral applications, which has "been challenging and is affecting our near-term sales performance."

Now what: While investors are rightfully concerned about management's ability to figure out how much of its products the company can sell in a given three-month period, the bigger issue may be Cardiovascular Systems' ability to get to profitability.

The company ended the quarter with $65 million in cash and equivalents in the bank. Ward said that "managing our cash position is a top priority," but also noted that the cash and "debt capacity and the potential to finance our $25 million Minnesota facility" were options to help Cardiovascular Systems become cash-flow positive. Taking on debt is sometimes necessary -- and sometimes even the best choice for a company -- but investors should be more receptive to it when taking on debt comes from a position of strength, not from a company that just reported a fall in revenue.

Brian Orelli and The Motley Fool have no position in any of the stocks mentioned. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.