Dental equipment maker Sirona Dental Systems Inc. (SIRO) reported Friday an increase in third-quarter profit, helped mainly by lower amortization expenses. The company continues to expect revenues on a constant currency basis for the full year 2009 to remain flat with 2008.
For the third quarter, net income rose to $20.47 million or $0.37 per share from $6.71 million or $0.12 per share in the previous year.
Per-share results of the latest quarter included, among other charges and gains, $0.24 of amortization and depreciation expense related to the write-up in value of assets due to purchase accounting, lower than $0.302 last year.
On average, nine analysts polled by Thomson Reuters expected the company to report earnings of $0.44 per share in the third quarter. Analysts' estimates typically exclude special items.
Operating income surged year-over-year to $24.92 million from $10.23 million. Amortization costs were $17.7 million, compared to $23.6 million in the year-ago quarter. Excluding amortization, operating income rose to $42.6 million from $33.8 million.
Gross profit was $86.8 million, up 4.0% from $83.47 million in the comparable quarter last year. Gross profit margin grew 3.4% to 48.1%, chiefly attributable to lower levels of deal related amortization.
Revenue for the quarter dipped 3.4% to $180.58 million from $186.94 million. On a constant currency basis, third quarter revenues increased 6.2% from the past year. Five analysts were expecting revenue of $177.71 million in the third quarter.
Sirona revealed that revenue in the U.S. dipped by 17.3%, because of lower CAD/CAM and Imaging sales as the company increased shipments to international markets. International revenue increased 2.5%, and 17.7% on a constant currency basis.
Selling, general and administrative expense came down sharply to $53.44 million from $63.76 million, while research and development outlay decreased to $9.90 million from $11.83 million.
For the first three quarters of fiscal 2009, net income slid to $26.62 million or $0.48 per share from $34.62 million or $0.63 per share last year. Revenue decreased 8.9% to $525.12 million from $576.50 million in the same period in fiscal 2008. On a constant currency basis, revenue came down 1.1% from last year.
Looking ahead, for fiscal 2009, the company continues to expect both revenues on a constant currency basis, and operating income excluding amortization to be flat with fiscal 2008. Analysts are currently looking for revenue of $702.77 million for the full year. The company had recorded revenue of $757.11 million for fiscal 2008.
SIRO closed Thursday's regular trading hours at $24.0 on the NASDAQ.
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