SmileDirectClub estimated that a cyberattack and associated downtime would cost it up to $15 million in revenue.
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SmileDirectClub Inc. SDC -0.05% said a cyberattack last month disrupted the company’s operations and will hurt its sales this quarter. The disclosure sent shares lower in after-hours trading.
The company, which sells teeth-straightening retainers, said in a securities filing that it was able to isolate the hack by shutting down affected systems and related manufacturing operations.
“The Company was able to successfully block the attack, no ransom was paid, and the Company’s systems and operations are back online and performing normally,” it said in the filing.
SmileDirectClub said that the incident may delay and disrupt parts of business, including treatment planning, manufacturing and product delivery.
It estimated that the attack and associated downtime would cost it $10 million to $15 million in revenue. The company said it now expects revenue in the second quarter in a range of about $195 million to $200 million. Analysts polled by FactSet were expecting sales of $206.7 million for the second quarter.
Shares fell 6% in after-hours trading. The stock closed Monday at $10.63 a share. It is up 53% in the past 12 months.
The company also said it expects to report first-quarter revenue of $199.5 million and a loss of 25 cents a share. Analysts were expecting revenue of $196 million and a loss of 10 cents a share.
The company is set to release its results on May 10.
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