Benzinga | Aug 4, 2021 07:00AM EDT

CytoSorbents Q2 Earnings Lag Consensus, Higher Costs Weigh On Bottom Line

* CytoSorbents Corporation (NASDAQ:CTSO) reported Q2 revenue of $12 million, up 23% Y/Y, but missing the consensus of $12.27 million.

* Product sales increased 19% Y/Y to $11.4 million. Core non-COVID-19 product sales were a record $9.7 million, up 38% Y/Y.

* The Company estimates that COVID-19 related sales were approximately $1.7 million.

* Overall gross margin improved from 66.8% to 77.5%, though reported a wider operating loss of $(4.9) million, versus a loss of $(3.3) million a year ago.

* It posted a wider net loss of $(0.11) per share, up from $(0.08) a year ago and missing the consensus of $(0.04).

* R&D expenses witnessed a 54% Y/Y growth to $3.7 million due to pre-enrollment activities related to the STAR-T trial in the U.S.

* The FDA signed off the 120-patient trial in July.

* SG&A expenses expanded 49% Y/Y to $9.8 million.

* CytoSorbents maintains a cash balance of $65.6 million.

* Outlook: For the rest of 2021, the Company expects at least 30% Y/Y growth in the core, non-COVID-19 product sales.

* Overall, it expects second-half 2021 product sales to exceed the first half 2021 product sales.

* Also, on the conservative side, CTOS forecasts product sales associated with COVID-19 treatments to be less than $1 million in the second half of 2021, compared to approximately $3.5 million in the first half of 2021.

* Price Action: CTSO shares closed at $7.26 on Tuesday.