Conceptus Inc., maker of a form of permanent birth control, fell the most in 10 years after the company said second-quarter results fell short of forecasts.
Conceptus declined $3.12, or 20 percent, to $12.67 at 4 p.m. New York time in Nasdaq Stock Market composite trading, the stock’s biggest drop since April 2000. The shares had lost 3.7 percent of their value in the past 12 months before today.
Sales were $36.8 million to $36.9 million, less than the company forecast of at least $39.5 million, as visits to doctor’s offices for the birth-control procedure declined, the Mountain View, California-based company said in a statement yesterday. Conceptus had a loss of 1 cents to 2 cents a share, less than its guidance for at least break-even. The company also lowered its full-year forecasts.
“2010 has developed into a challenging year for us, with the weak domestic economy and strong U.S. dollar impacting our results more than we had anticipated,” said Chief Executive Officer Mark Sieczkarek in the statement.
Full second-quarter results are scheduled to be released Aug. 5, the company said.
Conceptus’s Essure, a minimally invasive device that prevents women from getting pregnant, generated sales of $131 million last year. Women must see a physician to receive the product.
Office visits are expected to decline 5 percent to 10 percent this year from a year earlier, Conceptus said. Foreign currency exchange may reduce sales by $4 million and earnings by 9 cents a share, the company said.
The company said net sales for 2010 are expected to be $143 million to $145 million compared with a previous range of $160 million to $165 million. The company expects earnings per share, excluding certain items, to be 70 cents to 75 cents compared with previously expected range of 99 cents to $1.04 for 2010.
Lazard Capital Markets and Maxim Group cut their ratings on Conceptus to “hold” from “buy” today.