Thursday, Sirona Dental Systems Inc. (SIRO) reported a steep decline in the first-quarter net income from the year-ago period primarily due to lower revenue and losses from foreign exchange transactions and derivative instruments. The company also reaffirmed its FY09 Earnings guidance.
The Long Island City, New York-based company reported a decline in the first quarter net income to $5.56 million or $0.10 per share from $16.99 million or $0.31 per share in the corresponding quarter last year. On average, six analysts polled by Thomson Reuters estimated earnings of $0.49 per share for the quarter. Analysts' estimates typically exclude special items.
Revenue for the quarter decreased to $179.72 million from $200.11 million in the comparable period last year. Analysts estimated revenue of $185.21 million for the quarter.
Chairman, President & CEO, Jost Fischer commented, "Our first quarter results are inline with our expectations. Against the backdrop of a challenging economic environment, we continue to execute and are taking the necessary steps to succeed.
Additionally, our expense management initiatives are underway and we will start seeing the benefit as we move forward. With our continuing investment in research and development, best-in-class product offerings, and excellent relationships with our dealer partners, we remain confident in the prospects for our business."
Income tax provision for the quarter decreased to $2.0 million from $7.24 million in the comparable period last year.
Loss on derivative instruments for the quarter of fiscal 2009 widened to $4.97 million from $2.22 million for the quarter of 2008.
The company reported a foreign currency transaction loss of $3.59 million for the quarter compared to a gain of $5.89 million in the similar period last year.
At December 31, 2008, the company had cash and cash equivalents of $143.7 million and total debt of $548.5 million, resulting in net debt of $404.8 million. This compares to net debt of $403.8 million at September 30, 2008.
Looking forward, the company reaffirmed its fiscal 2009 guidance and expects both revenues on a constant currency basis and operating income excluding amortization to be flat as compared to fiscal 2008.
On average, analysts polled by Thomson Reuters estimated earnings of $1.67 per share for the full year 2009 on revenues of $706.48 million. Analysts' estimates typically exclude special items. Sirona Dental Systems reported fiscal year 2008 net income of $29.44 million or $0.53 per share on revenues of $757.1 million.
Sirona is currently trading at $12.68, down $0.40 or 3.06% on a volume of 273,830 shares on the Nasdaq.
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