Aspect Medical Systems, Inc. (ASPM), a manufacturer of anesthesia monitoring systems, Thursday reported a rise in earnings for the second quarter, despite lower revenues, helped by a benefit from other income. However, on an adjusted basis, earnings for the quarter decreased marginally. The company also provided outlook for the third quarter.
The Norwood, Massachusetts-based company's net income for the second quarter was $1.9 million or $0.10 per share, up from $1.5 million or $0.07 per share in the previous year quarter. Recent quarter results included other income of $3.9 million.
Net income included stock based compensation expense of $1.6 million, compared to $2.0 million in the year-ago quarter.
On an adjusted basis, net income fell marginally to $3.4 million from $3.5 million in last year quarter. Earnings per share grew to $0.17 from $0.15 in the prior-year quarter. On average, five analysts surveyed by First Call/Thomson Financial estimated breakeven per share.
Total revenues for the second quarter declined to $25.2 million from $26.6 million in the same quarter of the earlier year. Five analysts' average revenue projection was $24.66 million.
Second quarter other income includes a $3.9 million gain from the company's repurchase of its convertible notes.
Loss from operations for the second quarter was $946 thousand, compared to income from operations of $18.4 million in the same quarter of the preceding year.
Gross profit margin for the second quarter was $18.8 million or 74.8% of revenues, lower than $20.9 million or 78.4% of revenues in the comparable quarter of the prior year.
For the six-month period, the company's net income declined to $1.7 million from $2.0 million in the year-ago period. However, earnings per share grew to $0.10 from $0.09 in the prior year period, mainly due to fall in share count.
On an adjusted basis, net income was $4.6 million, down from $5.6 million in the previous year period. Earnings per share increased to $0.26 from $0.24 in last year period.
Total revenues for the first six months were $49.6 million, down from $50.8 million in the preceding year period.
Moving ahead, the company expects third quarter GAAP net loss of $0.10 - $0.06 per share and non-GAAP results between a loss of $0.01 per share and earnings of $0.03 per share. The company also expects revenues of $24.1 million - $25.1 million. Five Wall Street analysts, on average, estimate a loss of $0.04 per share on revenues of $24.91 million.
Shares of Aspect Medical Systems are currently trading at $6.74, up 5 cents or 0.75%.
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