Boston Scientific Corporation Announces Second Quarter Results
NATICK, Mass., July 28 /PRNewswire/ -- Boston Scientific Corporation (NYSE: BSX - news) today released financial results for its second quarter
ended June 30, 1998.
Net sales for the second quarter increased 7% to $506 million as compared to $474 million in the second quarter of 1997. International revenues for
the quarter were impacted by changes in foreign currency exchange rates. Without the impact of changes in exchange rates, net sales for the second
quarter increased 11%. Net income for the second quarter was $79 million or $0.39 per share (diluted). This compares to net income of $90 million,
or $0.45 per share, without special charges, recorded in the second quarter of 1997.
Pete Nicholas, Chairman and Chief Executive Officer said, ''Overall results for the first half were about as expected in light of the fact that we did not
have a coronary stent approved for marketing in the United States. Sales and earnings growth should accelerate in the second half with the anticipated
availability of the NIR(TM) stent in the United States and the completion of the Schneider acquisition. Both of these events should enable the company
to enter 1999 with strong momentum worldwide.''
In addition to historical information, this press release contains forward looking statements with respect to increasing productivity. The company wishes
to caution the reader of this press release that actual results may differ from those discussed in the forward looking statements and may be adversely
affected by, among other things, risks and uncertainties related to competitive offerings and new product launches, timing and scope of regulatory
approvals, completion of acquisitions, infrastructure development, continued international expansion and foreign exchange fluctuations, intellectual
property rights, the ability of the Company to implement its overall business strategy and other factors described in the Company's filings with the
Securities and Exchange Commission.
Boston Scientific Corporation is a worldwide developer, manufacturer and marketer of medical devices. The Company's products are used in a broad
range of interventional medical specialties.
BOSTON SCIENTIFIC CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited)
Three Months Ended Six Months Ended
June 30, June 30,
In thousands, except 1998 1997 1998 1997
per share data
Net sales $505,731 $473,749 $975,736 $904,280
Cost of products sold 151,230 131,455 291,189 252,512
Gross profit 354,501 342,294 684,547 651,768
Selling, general
and administrative
expenses 181,666 157,031 353,534 308,994
Royalties 6,607 5,388 13,342 11,286
Research and
development
expenses 48,638 41,006 93,286 79,704
Special charges (9,362) 157,841 (9,362) 157,841
227,549 361,266 450,800 557,825
Operating income
(loss) 126,952 (18,972) 233,747 93,943
Other expense, net (3,151) (4,083) (11,565) (4,406)
Income (loss) before
income taxes 123,801 (23,055) 222,182 89,537
Income taxes 45,065 3,841 76,547 40,997
Net income (loss) $78,736 ($26,896) $145,635 $48,540
Net income (loss)
per common share
- basic $0.40 ($0.14) $0.75 $0.25
Weighted average
shares outstanding
- basic 194,898 194,702 194,458 194,672
Net income
(loss) per common share
- assuming dilution $0.39 ($0.14) $0.73 $0.24
Weighted average
shares outstanding
- assuming dilution 199,864 194,702 199,136 200,311
BOSTON SCIENTIFIC CORPORATION
CONDENSED CONSOLIDATED BALANCE SHEETS
(Unaudited)
June 30, December 31,
In thousands 1998 1997
Assets
Current assets:
Cash and short-term
investments $155,920 $80,309
Trade accounts
receivable, net 440,124 413,838
Inventories 459,871 386,742
Deferred income taxes 154,036 146,956
Prepaid expenses and
other current assets 51,724 36,176
Total current assets 1,261,675 1,064,021
Property, plant,
equipment and
leaseholds, net 562,530 498,967
Intangibles, net 319,660 313,346
Investments and
other assets 85,372 91,473
$2,229,237 $1,967,807
Liabilities and Stockholders' Equity
Current liabilities:
Borrowings due
within one year $27,127 $447,208
Accounts payable and
accrued expenses 261,717 260,114
Accrual for
merger-related
charges 29,559 68,358
Income taxes payable 42,128 26,039
Other current liabilities 4,662 6,292
Total current liabilities 365,193 808,011
Long-term debt 551,192 46,325
Deferred income taxes 58,034 58,034
Other long-term liabilities 72,506 69,205
Stockholders' equity 1,182,312 986,232
$2,229,237 $1,967,807
SOURCE: Boston Scientific Corporation |
