Somanetics Corporation (Somanetics), a US-based medical devices company, has announced its first quarter of 2009 results. Net revenues increased by 28% to $11.2 million for the first quarter of fiscal 2009 from $8.7 million in the year-ago quarter. Net income was $1.3 million, or $0.10 per diluted share, for the first quarter of fiscal 2009, compared with the net income of $1 million, or $0.07 per diluted share, in the year-ago quarter.
First quarter income before income taxes was $2.1 million compared to $1.8 million for the first quarter of 2008.
Gross margin was 86% in the first quarter, compared with 88 percent in the first quarter of 2008. As of February 28, 2009, Somanetics’ cash, marketable securities and long-term investments balance was $71.6 million, with no borrowings.
“We delivered solid financial results in the first quarter, particularly given the current economic environment,” said Bruce Barrett, Somanetics’ president and CEO. “Our performance reflects the ongoing need for our monitoring technology and the stability of our business model, which provides us a recurring revenue stream. During the quarter we made progress executing our strategy to develop our target markets for the INVOS System and advancing our leadership position in this evolving marketplace.”
“We anticipate that fiscal 2009 will be a year of continued growth for Somanetics and its technology, and we also view it as a year of substantial investment,” Barrett continued. “During the first quarter, we invested in sales, marketing and medical education to develop the neonatal ICU market. We are supporting our marketing initiatives with clinical research related to the use of the INVOS System in the neonatal ICU, and expect research to be presented at conferences later in 2009. In addition, we are continuing to make investments within R&D to capitalize on a number of opportunities to expand the applications for our technology.”
Sales and Marketing Activities
During the second quarter, Somanetics will participate in approximately 20 medical conferences, including the 2009 annual meeting of the American Association for Thoracic Surgery and various regional and state cardiothoracic, perfusion, anesthesia, pediatric cardiac and neonatology association meetings.
Research and Development
Somanetics is continuing to develop a number of research and development projects. In late 2008, Somanetics acquired substantially all of the assets of ICU Data Systems, including its patented data integration technology. In the second quarter of fiscal 2009, Somanetics expects to launch a stand-alone device that integrates data from a broad array of hospital bedside devices, such as physiological monitors, ventilators and infusion devices, into a single bedside display for comparison, data management and storage.
Based on its first quarter results, Somanetics is reaffirming its financial guidance for fiscal year 2009. Somanetics is currently forecasting:
Fiscal 2009 net revenues of approximately $54.6 million, a 15% increase over 2008.
Gross margin of approximately 86 percent and operating margin of about 20%.
Fiscal 2009 income before income taxes of approximately $12 million.
Current estimates are based on market and economic conditions, including the assumption that the current economic downturn continues throughout 2009, and Somanetics’ current plans to invest in several areas of its business. Such investments include clinical research, medical education, research and development projects focused on the pediatric and neonatal ICU markets, the development of the ICU Data Systems technology and the addition of several international sales employees. Somanetics undertakes no obligation to update its estimates.