SmileDirectClub Inc. shares fell more than 7% after close of trading on Monday afternoon after official announcement of a cybersecurity incident and its financial implications.
A filing with the Securities and Exchange Commission announced that it was hit by an attack on April 14th that caused a system failure. Although the company did not disclose the exact nature of the attack, it said "No ransom was paid," suggesting that it was a ransomware attack.
"Currently, the company is not aware of any loss of data or any other loss of assets as a result of the incident, including disclosure of customer or team member information," the filing states. "However, the incident has created delays and disruptions in parts of the company, including treatment planning, manufacturing operations and product delivery."
SmileDirect expects the incident to have a $ 10 million to $ 15 million revenue impact this quarter, but hopes that insurance will help cover some costs. The company announced that after subtracting the impact, which FactSet said is below analysts' average expectations of $ 206.7 million, it now expects revenue to be in the range of $ 195 million to $ 200 million.
SmileDirect also announced preliminary results for the first quarter of the filing. The direct-to-consumer orthodontics company expects first quarter net loss of $ 95.6 million, or 25 cents per share, on revenue of $ 199.5 million. According to FactSet, analysts expected an average revenue loss of 10 cents per share of 196 million US dollars.
SmileDirect expects the first quarter results to be reported in full on May 10th.
SmileDirect shares rose more than 7% after close of trading on Monday after falling one cent to $ 10.63 in the regular session. The share rose 53% last year as the S&P 500
has increased 47.7%.