(RTTNews) -  Tuesday, interventional medical devices maker AGA Medical Holdings (AGAM: News ) reported a swing to third-quarter loss, hurt by higher operating expenses which more than offset a 15% increase in revenue and squeezed income from operations which in turn was impacted by accrued dividends on preferred and common stock.

The Plymouth, Minnesota-based company reported net loss applicable to common stockholders of $2.4 million or $0.11 per share for the third quarter, compared to net income applicable to common stockholders of $1.8 million or $0.04 per share a year ago.

On a non-GAAP basis, net income declined to $2.2 million or $0.05 per share from $5.9 million or $0.14 per share in the prior-year quarter. Non-GAAP net income excludes dividends for Series A and Series B preferred and Class A common stock accrued in the period.

Revenues for the third quarter increased 14.9% to $50.2 million from $43.6 million in the third quarter of 2008. On a constant currency basis, net sales grew 17.2% year over year.

Operating income declined to $4.96 million from $9.68 million in the third quarter of 2008.
Gross margins increased to 86.8% from 84.7% in the prior-year period due to higher average selling prices from the distributor to direct conversions completed earlier this year and manufacturing efficiencies.

For the nine-month period, the company's net loss applicable to common stockholders widened to $15.1 million or $0.70 per share from $4.7 million or $0.22 per share in the year-earlier period. Revenue for the period increased 16.1% to $144.5 million from $124.5 million in the year-ago period.

AGA Medical revealed that upon closure of its its $199.4 million initial public offering, it received $88.2 million in net proceeds. The proceeds were used to repay debt of $75.0 million and pay accrued interest on the debt totaling $5.0 million, with the balance being used for general corporate purposes. Upon completion of the IPO, $189.5 million of the Series A and Series B preferred and Class A common stock and their associated accrued dividends as of September 30, 2009, were converted to common stock, the company said.

AGAM closed Tuesday's regular trading at $13.35, down $0.29 or 2.13%, on a volume of 43 thousand shares on the Nasdaq.

To receive FREE breaking news email alerts for AGA Medical Holdings, Inc. and others in your portfolio

by RTT Staff Writer

For comments and feedback: contact editorial@rttnews.com