SmileDirectClub Inc (NASDAQ: SDC) is trading lower Tuesday morning after the company announced Monday it experienced a cybersecurity attack that will negatively impact the company’s earnings in the first quarter.
What Happened: SmileDirectClub filed a form 8-K with the Securities and Exchange Commission (SEC) Monday disclosing a system outage caused by a cybersecurity attack. The company implemented a “series of containment measures,” including temporarily isolating and shutting down affected systems and related manufacturing operations.
The company noted that it was able to successfully block the attack which took place on April 14, however it adjusted second-quarter guidance and said it expects losses of 25 cents per share in the first quarter versus the estimate for a loss of 9 cents per share.
SmileDirectClub is scheduled to report first-quarter earnings on May 10.
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SDC Price Action: SmileDirectClub traded as high as $16.07 and as low as $6.31 over a 52-week period. At last check Tuesday morning, the stock was down 17.12% at $8.81.
(Photo courtesy of SmileDirectClub.)
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