Given Imaging tramples fourth-quarter forecasts in sales and profit
09.2.2005 | 09:14
Nathan Sheva
Given Imaging (TASE, Nasdaq:GIVN) thoroughly trounced forecasts for the fourth quarter of 2004 and for the year.
The pioneer of PillCam, a noninvasive endoscopy technique based on a miniaturized video camera that patients swallow inside a capsule, said fourth-quarter revenue amounted to $22.2 million, up 77% from the parallel quarter and 52% from the third quarter.
It netted $2.44 million. Wall Street had generally expected $1.4 million profit on turnover of $17.3 million. It wasn't even close.
Operating profit reached $828,000, compared with an operating loss of $256,000 in the previous quarter.
Its gross margin has been swinging: Its gross margin in the fourth quarter of 2004 was 70.4% of revenues compared to 69.8% of revenues in the fourth quarter of 2003 and 75.1% in the third quarter of 2004, Given Imaging said.
In the fourth quarter it generated $14 million cash, including $10 million as the first milestone payment from InScope, a division of Ethicon Endo-Surgery. Cash balance at the end of 2004 was $80.9 million.
For the year Given Imaging reported a 60% worldwide revenue increase to $60 million, and a net profit of $2.8 million, versus a loss of $9.8 million in the year before.
The company attributed the increase in sales partly due to rising re-orders of its basic PillCam, used to diagnose conditions of the small bowel, rising sales of the diagnostic software systems, and sales of its new PillCam for the esophagus.
"2004 was another record year of achievements for Given Imaging," said Gavriel D. Meron, the president and CEO of Given Imaging. "Our achievements this year included launching new products; forming a strategic collaboration with InScope, a division of Ethicon Endo-Surgery; expanding reimbursement coverage; accelerating revenue growth; increasing recurring revenue; solidifying our financial position through a successful follow-on offering; and becoming a profitable company."
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