(RTTNews) - Valeant Pharmaceuticals International (VRX: News ) Monday reported a sharp decline in net profit for the third quarter of fiscal 2009. Income from continuing operations increased from the prior year, as revenues rose 31%. The company also raised its full year 2009 cash earnings per share guidance.

For the third quarter, the Aliso Viejo, California-based company's net earnings plunged to $37.28 million or $0.44 per share from $202.89 million or $2.31 per share in the prior year quarter.

Income from continuing operations for the period was $37.63 million or $0.45 per share compared with a loss of $7.26 million or $0.08 per share in the 2008-year period.

On an adjusted cash earnings per share basis, income from continuing operations was $48.8 million or $0.58 per share compared with $16.7 million or $0.19 per share in the previous year. During the period, Valeant incurred a loss of $354 thousand or $0.01 per share from discontinued operations, versus an income of $210.15 million or $2.39 per share in the year-ago period.

On an average, six analysts polled by Thomson Reuters expected the company to earn $0.49 per share for the quarter. Analysts' estimates typically exclude special items.

Total revenues for the period increased to $220.32 million from $168.42 million in the third quarter of fiscal 2008. Analysts expected Valeant to generate revenues of $193.53 million during the quarter.
On a segmental basis, specialty pharmaceuticals product sales was $101.62 million versus $70.12 million in the prior year. Revenues from product sales in Branded Generics - Latin America fell to $40.68 million from $42.63 million, and revenues from product sales in Branded Generics - Europe were $40.23 million compared to $40.43 million a year earlier.

At constant exchange rates, Specialty Pharmaceuticals product sales, product sales in Latin America, and product sales in Europe increased 47%, 19%, and 29% respectively from the 2008-year period.

Ribavirin royalties in the quarter were $12.2 million as compared to $15.2 million in the third quarter of 2008. Valeant attributed the decrease to expiration of royalty terms in certain European countries on ten-year anniversary of product launches in respective countries.

During the three-month period, operating expenses incurred by the company rose slightly to $152.79 million from $152.41 million in the corresponding period prior year. Selling, general and administrative costs declined 6% to $67.2 million from $71.5 million in the third quarter of 2008, reflecting benefit of cost reduction activities and exchange rates, partially offset by increased costs attributable to acquisitions.

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