(RTTNews) - Wednesday, Integra LifeSciences Holdings Corp. (IART: News ), a manufacturer of surgical implants and medical instruments, reported a swing to profit for the third quarter on the absence of charges that impacted year-ago results. Looking ahead for the full year, the company revised its GAAP earnings guidance, while reaffirming revenue and adjusted earnings outlook.

Third quarter net income attributable to diluted shares increased to $14.33 million or $0.49 per share from net loss of $16.86 million or $0.60 per share reported in the prior-year.

While the Plainsboro, New Jersey-based company spent $25.55 million lower in acquisition-related charges than year-ago, earnings for the period were also helped by the absence of $18.36 million in restricted stock-grant charges, that impacted year-ago results. The recently ended July-September period suffered $3.79 million in income tax charges related to these one-time items, compared with a $18.97 million last year.

Excluding these and other special items, adjusted net income was higher at $15.6 million or $0.53 per share, compared with $13.3 million or $0.45 per share in the prior-year quarter.

On average, 12 analysts polled by Thomson Reuters expected the company to report earnings of $0.52 per share. Analysts' estimates typically exclude special items.

Total revenues grew 3% to $172.29 million from $167.03 million in the same quarter last year. Analysts estimated revenues of $170.50 million for Integra, whose sales markets are primarily in neurosurgery, extremity reconstruction, orthopedics, and general surgery.
The boost in third quarter revenues was fueled by a 19% year-on-year growth in the company's Orthopedics division to $64.14 million from $53.78 million, offset by a 1% drop in net sales from Neurosciences division to $67.23 million and a 9% dip in Medical Instrument sales to $40.92 million. Excluding the impact of currency exchange rates, revenues increased 4%.

Integra's research and development costs fell to $11.53 million from $34.72 million, contributing to the general decline in costs and expenses to $148.47 million, compared with $189.92 million in the same quarter last year. The company reported an operating income of $23.82 million, compared with an operating loss of $22.89 million last year.

During the quarter, the company noted that it repurchased $17.7 million par value of its 2.75% senior convertible notes due June 2010 for $17.3 million in cash and paid down $40.0 million of its credit facility.

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