Long Island City, New York based Sirona Dental Systems Inc. (SIRO), reported Tuesday a sharp decline in its second-quarter profit, as revenues declined by 13% amid global slump. Further, the company reaffirmed fiscal 2009 outlook and expects revenues to be flat with the prior year.
For the second quarter, net income dropped to $0.6 million or $0.01 per share from $10.9 million or $0.20 per share in the previous year.
Amortization expense attributable to the write-up in value of assets due to purchase accounting for the latest period was $17.6 million, compared with $22.8 million in the prior-year quarter. The results of the second quarter in 2009 included restructuring expense of $2.8 million.
The prior year quarter included earnings per share of $0.28 of amortization and depreciation expense attributable to the write-up in value of assets due to purchase accounting, a gain of $0.085 related to the revaluation of the Patterson exclusivity fee and a $0.056 gain resulting from the revaluation of short-term intragroup loans. On average, seven analysts polled by Thomson Reuters estimated the company to report earnings of $0.35 per share in the second quarter. Analysts' estimates typically exclude special items.
Revenue for the quarter declined 13% to $164.8 million from $189.5 million in the same period last year. Analysts were looking for revenue of $167.83 million in the second quarter.
Jost Fischer, chief executive of Sirona said, "As expected, our second quarter financial results declined year over year, due to the difficult economic environment, the challenging comparison caused by the MC XL milling unit upgrade program in the prior year quarter, and the timing of the biannual International Dental Show in Cologne."
For the year-to-date period, net income declined sharply to $6.15 million or $0.11 per share from $27.91 million or $0.50 in the past year. Amortization expenses were $35.2 million for the first half of 2009, compared to $45.1 million for the same period last year. Revenue dipped 11.6% year-over-year to $344.5 million from $389.6 million.
For fiscal 2009, the company backed its earlier guidance and expects revenues on a constant currency basis to be flat with the year-ago period. Analysts expect $1.61 per share on revenues of $706.48 million for the year.
SIRO closed Monday's regular trading session at $16.52 on the Nasdaq.
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