(RTTNews) -  Disposable medical connection systems maker ICU Medical, Inc., (ICUI: News ) Monday said its third quarter profit declined, on higher operating expenses. Earnings for the quarter, however, came in well ahead of market expectations. Looking ahead, the company raised its earnings guidance for fiscal year 2009.

The San Clemente, California-based company's net income for the third quarter declined to $6.32 million or $0.42 per share from $7.64 million or $0.52 per share in the previous year.

On average, five analysts polled by Thomson Reuters expected the company to report earnings of $0.32 per share for the quarter. Analysts' estimates typically exclude special items.

For the current quarter, ICU Medical benefited from a favorable tax rate that added about $0.08 per share to its earnings.

Total revenue for the quarter declined to $53.96 million from $54.73 million a year ago, yet topped the analysts' revenue estimate of $50.39 million.

International revenue for the quarter grew 53%, while sales from domestic distributors and direct sales improved 98%.

Gross profit for the quarter rose to $25.05 million from $24.95 million in the earlier year.
Total operating expenses increased to $17.41 million from $14.43 million in the previous year. Selling general and administrative expenses rose to $16.75 million from $13.57 million.

For the nine-month period, net income increased to $19.13 million or $1.27 per share from $15.31 million or $1.06 per share in the same period of the previous year. Total revenue for the period rose to $161.70 million from $147.98 million last year.

Looking forward to fiscal year 2009, the company expects earnings to be in the range of $1.74 to $1.79 per share, compared to the previously announced $1.62 to $1.71 per share. Analysts currently expect the company to report earnings of $1.66 per share for the fiscal year.

Revenues are currently expected in the range of $223 million to $228 million for the full year, compared to the previous range between $220 million and $230 million.

ICUI closed Monday's regular trading at $35.79, up 0.01 or 0.03%, on a volume of 167K shares on the Nasdaq. In after hours, the stock went down 0.03 or 0.08%, trading at $35.75.

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by RTT Staff Writer

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