BSX Posts Q3 Loss
Natick-based medical device maker Boston Scientific Corp. recorded a $725-million, or 52-cent-per-share, loss in its third quarter, primarily due to a goodwill impairment charge and slower sales, the company reported.
The firm estimates that the impact of the charge associated with the company's U.S. Cardiac Rhythm Management (CRM) unit at between $700 million and $900 million. It said the smaller-than-estimated size of the CRM market and related adjustments to the business led to CRM results being lower than previously forecast. The company's overall sales were down in the third quarter by 7 percent compared with 2011, to $1.7 billion.
The reported loss for the quarter was also related to costs associated with the firm's recent acquisition of BridgePoint Medical Inc., which develops a catheter-based system to treat coronary chronic total occlusions, and Rhythmia Medical Inc., which develops a mapping and navigation system for use in electrophysiology procedures.
"Despite increased competition and ongoing market challenges in our cardiology businesses, we continue to deliver on our adjusted earnings and free cash flow and saw encouraging year-over-year performance in nearly all of our other businesses," CEO Hank Kucheman said.
BSX posted a profit of $142 million, or 9 cents per share, in the same period last year.
During the third quarter, the company repurchased about 46 million of its shares, bringing the total number of shares repurchased in the last 18 months to 169 million. It also received regulatory approval for its implantable defibrillator and Parkinson's' disease treatment.
BSX reported an operating cash flow of $271 million, and said it expects fourth-quarter sales in the range of $1.7 billion to $1.8 billion. It expects earnings per share of between 6 cents to 9 cents.
Meanwhile, BSX said it estimates full-year sales to fall between $7.17 billion and $7.24 billion; but it also expects losses in the range of $2.86 to $2.89 per share.
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