The management of Avinger Inc. (NASDAQ: AVGR) tried to paint a rosy picture of the future at the release of the preliminary financial results for 2Q2016. First, the management tried hard to make it clear that revenue in the latest quarter rose 57% from the same period in the prior year. But when it came to modeling for the full-year 2016, the management pulled down the previously higher revenue guidance and replaced it with a lower guidance.
For 2016, the company is now expecting revenue reading in the range of $19 to $23 million. But that is a far cry from the previous revenue guidance for 2016 that was provided in the range of $25 to $30 million. That has made some shareholder rights attorneys to question whether the company’s previous statements were false or misleading when it created hope in investors that it would generate higher revenue this year.
As such, shareholder attorneys at Johnson & Weaver, LLP and Levi & Korsinsky have announced that they are investigating the Avinger Inc (NASDAQ:AVGR). Their investigations focus on finding out whether the company violated federal securities laws and the impact of such violation on the holdings of investors in the company. The law firms have encouraged investors in Avinger to contact them to discuss their rights and remedies relating to the investigations.
Findings of wrongdoing on the side of Avinger Inc (NASDAQ:AVGR) may trigger class-action lawsuit. But there is no guarantee that the investors will find Avinger in violation of securities laws.
What transpired in 2Q for Avinger Inc. (NASDAQ: AVGR)?
What Avinger Inc (NASDAQ: AVGR) has reported so far are unaudited financial results from its 2Q2016 operations. But if you look at the results, you see that consolidated revenue in the quarter rose 57% YoY to $4.7 million, which is in-line with the projection that the management had provided. Nevertheless, the topline figure fell below the $5.7 million that analysts predicted on the average for the quarter. Avinger registered revenue growth across many of its product categories.