Boston Scientific Corporation (Boston Scientific), a US-based medical device company, has reported net sales of $2.01 billion for the first quarter of 2009, compared with the net sales of $2.05 billion in the year-ago quarter. It has also posted a net loss of $13 million, or $0.01 per share, for the first quarter of 2009, compared with the net profit of $322 million, or $0.21 per share, in the year-ago quarter.
First Quarter Highlights (Sales growth rates are constant currency):
Achieved sales of $2.010 billion and adjusted EPS of $0.19, both in line with guidance (GAAP loss per share of $0.01)
Increased worldwide sales of cardiac rhythm management (CRM) products nine%, including a 13% increase in implantable cardioverter defibrillator (ICD) sales
Increased US CRM sales 11%, including a 14% increase in ICD sales, the fourth consecutive quarter of double-digit US CRM growth
Expanded worldwide drug-eluting stent (DES) leadership to 44% market share; increased US market share to 50%: 27% TAXUS(R), 23% PROMUS(R)
Successfully launched the next-generation TAXUS(R) Liberte(R) Paclitaxel-Eluting Coronary Stent System in Japan, achieved 54% market share
Increased worldwide Endoscopy sales six%, Urology/Gynecology seven% and Neuromodulation nine%
Received rating outlook upgrades from Moody’s and Standard and Poor’s
“We’re off to a good start on the year with four% sales growth, excluding divestitures, on a constant currency basis and adjusted EPS at the high end of our guidance range,” said Jim Tobin, spokesman of Boston Scientific. “Our CRM and DES results were particularly impressive, with double-digit US growth in both businesses. We also saw continued solid performances by our Endoscopy, Urology/Gynecology and Neuromodulation businesses. We further reduced risk by settling additional litigation, pre-paying debt, amending our credit facility, and maintaining financial discipline and strong cash flow.”
Adjusted net income for the first quarter of 2009, excluding these charges, was $289 million, or $0.19 per share. Included in the reported and adjusted net income was $11 million, or $0.01 per share, of favorable discrete income tax items.
Reported net income for the first quarter of 2008 was $322 million, or $0.21 per share. Reported results included acquisition-, divestiture-, litigation-, and restructuring-related charges; and amortization expense (after-tax) of $35 million, or $0.03 per share. Adjusted net income for the first quarter of 2008, excluding these charges, was $357 million, or $0.24 per share. Included in the reported and adjusted net income was $43 million, or $0.03 per share, of favorable discrete income tax items and $8 million, or $0.01 per share, associated with divested businesses.
Guidance for Second Quarter and Full Year 2009
The company expects second quarter net sales in the range of $1.960 billion to $2.080 billion, which includes an estimated $100 million negative impact from foreign currency exchange as compared to the second quarter of 2008. Excluding the impact of foreign currency and sales from divested businesses, the company estimates net sales growth rates of three% to nine% during the second quarter of 2009. Adjusted earnings, excluding acquisition-, divestiture-, litigation- and restructuring-related charges; and amortization expense, are estimated to range between $0.16 and $0.21 per share. The company estimates net income on a GAAP basis of between $0.07 and $0.13 per share.
The company also reaffirmed its fiscal 2009 net sales in the range of $8 billion to $8.5 billion. Revenue estimate of analysts is $8.16 billion for the fiscal 2009. The company also continues to expect adjusted earnings, excluding acquisition-, divestiture-, litigation- and restructuring-related charges; discrete tax items, and amortization expense, for the full year of between $0.80 and $0.90 per share. The company now expects net income on a GAAP basis of between $0.46 and $0.57 per share, as a result of first quarter litigation-related charges and discrete tax items.
“This guidance reflects our optimism about the growth potential of all our businesses, which are benefiting from our renewed focus on product development and increasing sales profitably,” said Tobin. “Our momentum is building, and we are particularly enthusiastic about our prospects for the second half of the year, which we believe will contribute to a very strong 2009.”