BSX Loses $354M In Q1
Following a loss of more than $4 billion in 2012, Natick-based Boston Scientific continued to see declining revenue and profits in its first quarter of 2013.
Sales declined 6 percent over last year, to $1.76 billion, BSX said. Its net loss for the period was $354 million, or 26 cents per share. That's compared to a net income of $113 million, or 8 cents per share in the same quarter of 2012.
BSX said the decline was the result of a non-cash $422 million goodwill impairment charge associated with the firm's cardiac rhythm management unit. In January, the BSX reorganized its business from geographic regions to business units. That gave the company three new global segments including cardiovascular, rhythm management and MedSurg. The goodwill impairment charge stemmed from required goodwill testing following the restructuring.
President and CEO Michael F. Mahoney said the company is "encouraged but not satisfied" with its performance.
"We continue to make strong progress on our strategy to return to consistent sales and earnings-per-share growth."
While sales in most of the company's segments were down, it did see 6-percent growth in neuromodulation, 5-percent growth in endoscopy and a 3-percent increase in peripheral interventions.
BSX expects sales for the second quarter to be between $1.74 billion and $1.8 billion with earnings between 7 cents and 10 cents per share. Estimates for full-year sales are between $6.95 billion and $7.15 billion and that losses could be up to 6 cents per share.
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