Medical solution provider American Medical Systems Holdings, Inc. (AMMD) Monday reported a 9% increase in preliminary sales for the fourth quarter that reflected higher sales from segments and weaker U.S. dollar. Adjusting for the positive impact of the weaker U.S. dollar, revenues grew 6.1% from last year. The company also raised adjusted earnings guidance for the fourth quarter and full year.
The Minneapolis-based company posted preliminary sales for the quarter of $146 million, up from $134 million a year earlier. The company noted that weakening of the U.S. dollar positively affected revenue comparisons for the quarter by $3.9 million. Analysts expected revenues of $140.18 million for the quarter.
For the full year, preliminary sales increased 3.5% to $519.3 million from $501.6 million in the prior year. The strengthening of the U.S. dollar negatively affected revenue comparisons between years by $8.2 million. Adjusting for the negative impact of foreign currency fluctuations, yearly revenues increased 5.2%.
Segment-wise, Men's Health division posted sales of $63.5 million, up 8.2% from a year ago, while grew 5.2% on a constant currency basis. Sales growth was led by the erectile restoration product line which continued its strong performance in the fourth quarter. BPH therapy business increased 10.3% on a reported basis and grew 6.5% on a constant currency basis to $33.3 million, driven by continued strength in the U.S. combined with notable improvement in international markets, particularly in Asia Pacific and Latin America.
The Women's Health business increased 8.9% on a reported basis and 6.9% on a constant currency basis to $49.2 million. The company noted that Pelvic Floor Repair grew more than 20%, driven by the launch of Elevate anterior in mid-2009.
Commenting on the results, Chief Executive Officer Tony Bihl said, "The successful launch of the Elevate® anterior product in mid 2009 contributed nicely to stronger performance in the back half of the year."
Giving the strong fourth quarter revenue performance, the company lifted fourth quarter 2009 adjusted earnings estimates to be in the range of $0.32 to $0.35 per share from the previous guidance of $0.29 to $0.33 per share. The company also raised fiscal 2009 adjusted earnings forecast to be in the range of $1.12 to $1.15 per share from $1.10 to $1.14 per share.
On average, eight analysts polled by Thomson Reuters currently expects the company to report earnings of $0.33 per share for the fourth quarter, and $1.14 per share for the full year. Analysts' estimates typically excluded special items.
American Medical added that the guidance excludes the impact of amortization of intangible assets which is about $0.03 and $0.11 for the fourth quarter and full year 2009, respectively, and amortization of financing costs which is around $0.03 and $0.13 for the fourth quarter and full year 2009, respectively. Additionally, guidance for both periods also excludes the impact of any unusual non-recurring items that could occur, such as gain or loss on early debt extinguishments, sale of non-strategic assets or IPRD charges on milestone payments related to prior acquisitions.
The company said that it is making investments in selling and selling support as well as geographic expansion to drive accelerated revenue growth in 2011 and beyond, and as a result of these investments, operating margin improvement will be modest in 2010.
AMMD is currently trading at $20.005, down 0.05%, on a volume of 284 thousand shares on the Nasdaq.
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June 05, 2026 16:18 ET A busy week for economic news flow saw a slew of reports being released that reflected the trends in the U.S. labor market. In Europe, economic growth and inflation data gained attention as the European Central Bank and Bank of England head for policy session later in the month. In Asia, the monetary policy session of the Indian central bank was in focus as the country, a major oil importer, reels under the pressures of a weaker rupee and rising inflation.