Depomed (NASDAQ: DEPO) reported Q1 EPS of $0.07, $0.07 worse than the analyst estimate of $0.14. Revenue for the quarter came in at $95 million versus the consensus estimate of $103.06 million.

GUIDANCE:

Depomed sees FY2017 revenue of $410-430 million, versus the consensus of $473 million.

“I am excited to have joined Depomed and am confident in our future,” said Arthur Higgins, President and Chief Executive Officer of Depomed. “We are currently facing a number of challenges in our business and they are reflected in our first quarter performance which fell well short of expectations. During my first month on the job, I have worked across the Company to diagnose our recent performance. The key drivers of our first quarter shortfall include: significant declines in the opioid market and a highly disruptive salesforce realignment which was implemented in February.”

Mr. Higgins continued: “Despite these challenges, Depomed has a valuable set of differentiated assets and, as a team, we are working rapidly to address the issues within our control. We are in the process of implementing a number of actions that are compatible with market realities and the promotional needs of our products. These initiatives should have an impact in the coming quarters as we stabilize the business and look to exit the year well positioned to drive sustainable long-term growth and shareholder value.”

For earnings history and earnings-related data on Depomed (DEPO) click here.