Avinger Inc. (AVGR Quick QuoteAVGR - Free Report) opened down 40% on Wednesday after announcing preliminary Q2 earnings and lowering their guidance.

The Redwood City, CA based firm designs, manufactures and sells image-guided catheter-based systems to treat peripheral arterial disease (PAD).

AVGR announced preliminary Q2 revenue of about $4.7 million, which although is a 57% year-over-year increase misses estimates by $1 million. According to the company’s official statement, revenues from disposable devices were $3.7 million, a 118% increase year-over-year, and a 12% increase from Q1 2016. However, revenue from their Lightbox imaging consoles is expected at $1 million, a 29% decrease year-over-year and a 17 % decrease from Q1 2016.

Along with the release of preliminary earnings, AVGR lowered its 2016 guidance. The company now expects revenue within the range of $19 million to $23 million (which represents year-over-year growth of 78% to 115%). This is down from the original guidance in the range of $25 million and $30 million.

Avinger currently sits at a Zacks Rank #3 (Hold).

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