Inverness Medical Innovations, Inc. (IMA) on Tuesday reported a swing to profit in the third quarter ended September 30, 2009 from the same quarter last year as revenues grew significantly. Revenues were helped by a substantial increase in North American influenza sales and recent acquisitions contributing to incremental net revenue, as well as currency adjusted organic revenue growth of 9.2% in the Professional Diagnostics business.
Inverness Medical, a medical diagnostics products company, reported third quarter net income available to common stockholders of $14.3 million or $0.17 per share, compared to a net loss available to common stockholders of $9.05 million or $0.12 per share last year.
Adjusted cash basis net income available to common stockholders was $66.6 million or $0.74 per share, compared to $37.7 million or $0.46 per share, for the third quarter of 2008.
On average, 10 analysts polled by Thomson Reuters expected the company to report earnings of $0.61 per share for the quarter. Analysts' estimates typically exclude special items.
Net revenue for the quarter was $535.81 million, compared to $438.8 million in the previous year quarter. Analysts anticipated revenues of $491.73 million for the quarter.
The company recorded currency adjusted organic revenue growth of 9.2% in Professional Diagnostics business, excluding North American influenza sales. North American influenza sales totaled $40.4 million for the third quarter of 2009, compared to $6.8 million for the third quarter of 2008. Recent acquisitions contributed $37.4 million of incremental net revenue.
Gross margin for the third quarter increased to 53% on a GAAP basis, while it was 55% on a non-GAAP basis. For the year-ago quarter, gross margin was 52% on a GAAP basis and 55% on a non-GAAP basis.
Operating income for the quarter on a GAAP basis was $54.0 million and $134.5 million on a non-GAAP basis. This compares with operating income of $13.2 million and $85.5 million on a non-GAAP basis in the prior year quarter.
Net income available to common stockholders for the nine-month period was $13.873 million or $0.17 per share, compared to a net loss of $46.681 million or $0.60 loss per share in the previous year period.
The company recorded net revenue of $1.44 billion, compared to $1.21 billion in the previous year nine-month period.
IMA is currently being traded at $41.17, up $0.93 or 2.31%, on a volume of 1.26 million shares on the NYSE.
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