(RTTNews) - Medical technology company Kinetic Concepts, Inc. (KCI: News ) Wednesday reported an increase in net profit for the third quarter, reflecting higher revenues from regenerative medicine segment and improved margins. The company also reaffirmed its earnings and revenues guidance for fiscal 2009.

For the quarter, the San Antonio, Texas-based company's net earnings was $64.57 million or $0.91 per share, up from $53.91 million or $0.75 per share in the prior-year quarter. On an adjusted basis, net profit increased to $76.17 million or $1.08 per share from $69.23 million or $0.96 per share a year ago.

Adjusted results exclude amortization of acquired intangibles, debt issuance cost amortization, and interest expense with regard to adoption of required accounting standards.

On average, seven analysts polled by Thomson Reuters expected Kinetic to earn $1.05 per share for the quarter. Analysts' estimates typically exclude special items.

Total revenues for the period rose slightly to $504.40 million from $503.30 million in the third quarter of fiscal 2008. Analysts expected the company to generate revenues of $504.01 million during the quarter.

On a segmental basis, revenues from VAC segment were up to $360.58 million from $360.29 million, regenerative medicine segment generated revenues of $71.77 million, up 17.2% from $61.23 million, while revenues from therapeutic support systems declined to $72.05 million from $81.78 million last year.

Geography-wise, revenues from North America were $388.64 million compared to $386.28 million, whereas revenues from EMEA/APAC countries slipped to $115.76 million from $117.02 million in the same quarter last year.
The company's rental revenues for the quarter were $298.58 million versus $305.21 million, while revenues from sales rose to $205.82 million from $198.09 million a year ago.

Kinetic noted that foreign currency exchange movements had a negative impact on the quarter's total revenues by about 1%, compared to the corresponding period prior year.

For the three-month period, the company's interest income and other incomes plunged to $158 thousand from $835 thousand, and interest expense was $25.73 million compared with $29.94 million last year. During the period, Kinetic had a foreign currency gain of $3.18 million as against a loss of $3.25 million in the 2008-year period.

The company's gross margin for the quarter was nearly 55%, an increase of about 400 basis points from the 2008-year period. Kinetic attributed the rise in margin to increased field service operations productivity and higher gross margins in relation to Regenerative Medicine business unit.

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