Monday, ev3, Inc. (EVVV), an endovascular device company, reported wider loss for the second quarter, despite a 65% increase in sales, hurt by higher operating expenses. The company also provided guidance for the third quarter, while and reaffirmed reaffirming its guidance for the full-year 2008.
Net loss for the second quarter widened to $27.4 million, or $0.26 per share, from $11.9 million, or $0.20 per share in the same quarter last year. Analysts polled by First Call/Thomson Financial expected loss of $0.18 per share for the quarter.
Net sales for the quarter grew 65% to $107.7 million from $65.4 million a year ago, and exceeded analysts' estimate of $102.6 million. Legacy ev3 peripheral vascular and neurovascular net sales, excluding atherectomy and research collaboration related revenues, increased 17% year-over-year.
Loss from operations widened to $26.9 million from $12.0 million last year. ev3 recorded an impairment charge related to the contract termination with Merck & Co of approximately $10.5 million in the quarter. ev3 anticipates that Merck collaboration related revenues would be approximately $4.1 million in the second half of 2008.
For the six-month period, net loss was $37.2 million or $0.36 per share, compared to $21.4 million or $0.37 per share last year. Net sales increased to $209 million from $126.9 million a year ago.
Looking ahead, For the third quarter, the company expects results, as adjusted, to be in the range of loss of $0.02 per share - earnings of $0.01 per share, on net sales between $104 million and $106 million. Analysts expect the company to report a loss of $0.10 per share on sales of $106.8 million for the quarter.
The company said encouraged by growing momentum in its peripheral vascular division, including the recovery of our its U.S. atherectomy business, as well as the continued strong performance of its neurovascular and international businesses, the company still expects fiscal 2008 adjusted earnings per share of $0.00 - $0.05, on sales of $425 million - $430 million. Analysts currently expect loss of $0.44 per share on sales of $424.4 million for 2008.
ev3 closed Monday's regular trading session at $9.78, down $0.60 or 5.78%.
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