Integra LifeSciences Holdings Corporation (Integra) has provided fourth quarter and full year 2008 guidance. For the Full year 2008, company expects to report total revenues of about between $654 million and $655 million, down 1% of the company's prior guidance of $657 million-$665 million in full year 2007. For the fourth quarter, company expects to report total revenues of about $174 million and $175 million, down 2%, compared with total revenues of $177 million, in the fourth quarter of 2007.
As a result, the company projects that GAAP and adjusted diluted earnings per share for the quarter and year ended December 31, 2008 will be lower than previous guidance.
The difference is primarily a result of a rapid strengthening of the US dollar in the fourth quarter and a contraction in hospital capital spending, which has depressed demand for certain capital equipment products, particularly in our neurosurgery product lines. The impact of this decline in demand for capital equipment did not become apparent until late in the quarter.
We continue to see strong growth in our Integra Orthopedic revenue category including our newly acquired spine business as well as sales of products through our Integra Extremity Reconstruction and Integra OrthoBiologics sales organizations. The company projects this strong performance to continue in 2009.
The company is also cuts its revenues and GAAP and adjusted diluted earnings per share guidance for 2009. This is based on prevailing exchange rates and our current projection that hospital spending on capital equipment will continue to be constrained in the current economic environment. In accordance with our usual practice, projections for financial performance do not include the impact of acquisitions or other strategic corporate transactions that have not yet closed. The company is now guiding to revenues between $720 million and $740 million for the full year 2009, against prior guidance of $735 million to $755 million. As has been the case in the past, we expect revenues in the first quarter of 2009 to be 3-5% lower than the fourth quarter of 2008, and earnings to be disproportionately lower, and that the fourth quarter of 2009 will be the strongest quarter of the year. The company is now projects GAAP diluted earnings per share for 2009 to be between $2.09 and $2.29 per share, against its prior guidance of $2.24-$2.44 per share, and adjusted diluted earnings per share for 2009 to be between $2.20 and $2.40 per share, compared to its prior guidance of $2.35-$2.55 per share.
The company’s 2009 earnings per share guidance does not include the impact of the adoption of Financial Accounting Standards Board Staff Position No. APB 14-1, Accounting for Convertible Debt Instruments that may be Settled in Cash Upon Conversion (“FSP APB 14-1”). The company is presently assessing the impact of adopting FSP APB 14-1, which we believe will be material to our results of operations. FSP APB 14-1 requires that the liability and equity components of convertible debt instruments that may be settled in cash upon conversion (including partial cash settlement) be separately accounted for in a manner that reflects an issuer’s nonconvertible debt borrowing rate.