Boston Scientific left nursing its bottom line after cyberattack
Medical device giant warns August intrusion will hit Q3 and full-year sales and earnings as recovery drags on
Last month's cyberattack severely disrupted Boston Scientific's operations, causing the company to doubt it will meet its sales growth and adjusted earnings guidance for the third quarter and full year, according to an SEC filing. The attack was detected on August 25, leading the medical device giant to shut down systems to contain the intrusion.
Initially, Boston Scientific could not quantify the financial impact of the incident, but its latest filing reveals the disruption is likely to have a material effect on its results. While the company expects to recover some of the lost revenue as it clears the backlog, the full financial impact remains unknown. Boston Scientific has since restored its distribution network and manufacturing operations worldwide, though some systems and business applications remain affected.
No data breach is suspected at this point, but the company has not disclosed the method of the attack or the responsible party. Despite the financial uncertainty, Boston Scientific does not expect the incident to significantly impact its long-term financial health.
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