>>The macro environment -- i.e. the crappy economy -- is about a wash. The desire to spend less on elective procedures is offset by the desire not to have children when you can't afford them. Long term use of condoms might actually be more expensive for the patient, and of course, less fun. This is in the context of insurance paying for most of the procedure. No indication that will change under ObamaCare.<<
Evidently, it's not a wash. CPTS cut guidance for the quarter and year citing macro concerns, and the stock is off about 25% after hours:
>>Conceptus® Updates Second Quarter and Full Year 2010 Financial Guidance
Company to Hold Second Quarter Financial Results Conference Call on August 5, 2010
Press Release Source: Conceptus, Inc. On Thursday July 8, 2010, 4:05 pm
MOUNTAIN VIEW, Calif.--(BUSINESS WIRE)--Conceptus, Inc. (Nasdaq: CPTS - News), developer of the Essure® procedure, the first proven non-surgical permanent birth control method available, today updated second quarter and full year 2010 financial guidance that was previously issued on April 20, 2010.
Based upon preliminary financial results from the just completed second quarter, the Company expects the following:
Updated Second Quarter 2010 Guidance:
Net sales are expected to be in a range of $36.8 million to $36.9 million. The Company’s previous net sales guidance range was $39.5 million to $41.0 million. Net sales in the second quarter of 2009 were $33.0 million.
GAAP diluted EPS loss is expected to be in a range of ($0.02) to ($0.01). The Company’s previous GAAP diluted EPS guidance range was $0.00 to $0.03. The Company’s GAAP diluted EPS loss in the second quarter of 2009 was ($0.02).
Non-GAAP diluted EPS is expected to be in a range of $0.10 to $0.11. The Company’s previous non-GAAP diluted EPS guidance range was $0.12 to $0.15. The Company’s non-GAAP diluted EPS in the second quarter of 2009 was $0.08.
Updated Full Year 2010 Guidance:
Net sales are expected to be in a range of $143.0 million to $145.0 million. The Company’s previous net sales guidance range was $160.0 million to $165.0 million. Net sales in 2009 were $131.4 million.
GAAP diluted EPS is expected to be in a range of $0.21 to $0.26. The Company’s previous GAAP diluted EPS guidance range was $0.50 to $0.55. The Company’s GAAP diluted EPS in 2009 was $0.25.
Non-GAAP diluted EPS is expected to be in a range of $0.70 to $0.75. The Company’s previous non-GAAP diluted EPS guidance range was $0.99 to $1.04. The Company’s non-GAAP diluted EPS in 2009 was $0.65.
The Company has lowered net sales guidance for the second quarter and full year 2010 due to domestic macroeconomic factors that are causing a reduction in physician office visits, and, to a lesser extent, a stronger U.S. dollar and Company initiatives related to competitive trialing. Based on third-party research combined with Company projections, domestic physician office visits in general during 2010 are expected to remain depressed over prior-year levels by 5% to 10% due to continued high unemployment rates. In addition, the Company estimates that currency exchange will negatively impact 2010 net sales by approximately $4.0 million and GAAP diluted EPS by approximately $0.09, compared with the Company’s previous expectations.
“2010 has developed into a challenging year for us, with the weak domestic economy and strong U.S. dollar impacting our results more than we had anticipated,” said Mark Sieczkarek, president and chief executive officer of Conceptus. “To proactively address competitive trialing, we have been re-educating physicians on the superior clinical results of the Essure procedure, which has temporarily lessened our focus on physician metrics. Even with these factors, we are projecting overall net sales growth of 9% to 10% for the year, which includes international unit volume growth of 30%.”
“We remain optimistic about our long-term growth prospects. Permanent birth control is a multi-billion dollar market with more than one million procedures performed annually in the U.S. alone. The Essure procedure is faster, safer, less expensive and more effective than competing procedures,” said Sieczkarek. “Our team is dedicated to establishing the Essure procedure as the industry’s standard of care.”
Conference Call on August 5, 2010
The Company will release second quarter 2010 financial results on August 5, 2010 after the close of market. Management will host an investment community conference call beginning at 4:30 p.m. Eastern time to discuss results and answer questions. Conference call dial-in information is as follows:
U.S. callers: (888) 803-8296
International callers: (706) 634-1250
Individuals interested in listening to the live conference call via the Internet may do so by logging on to the Company's website, www.conceptus.com.
A telephone replay will be available from 6:30 p.m. Eastern time August 5, 2010 through 11:59 p.m. Eastern time on August 9, 2010. Replay dial-in information is as follows:
U.S. callers: (800) 642-1687 (domestic)
International callers: (706) 645-9291 (international)
Conference ID number (U.S. and international): 87124264
The replay will also be available at www.conceptus.com <<
snip
Cheers, Tuck |
