International sales and the acquisition of Sierra Scientific Instruments Inc. a year ago boosted the revenue of Given Imaging Ltd. (Nasdaq: GIVN; TASE: GIVN) in the first quarter, despite weakness in the US market, where the company's business has not yet recovered.
Worldwide revenue rose 25% to $40 million in the first quarter from $32.1 million for the corresponding quarter, but 11% down from the preceding quarter. Revenue includes $5.5 million in sales by Sierra.
GAAP-based net profit fell to $765,000 ($0.02 per share) for the first quarter from $2.1 million for the corresponding quarter. Non-GAAP net profit fell to $3.1 million from $4.2 million.
Given Imaging reiterated its full-year guidance of non-GAAP earnings per share of $0.65 - $0.70 on $165-173 million revenue.
Sales in the Americas rose to $24.1 million in the first quarter from $20.5 million for the corresponding quarter; Europe, Middle East, and Africa sales rose to $11.2 million from $8.5 million; and Asia-Pacific sales rose to $4.7 million from to $3.1 million. Worldwide PillCam SB (small bowel) endoscopic capsule sales rose to 54,200 the first quarter from 50,900 in the corresponding quarter. While US sales were stagnant, EMEA sales rose 18% and Asia-Pacific sales rose 26%. The capsule recently obtained US Food and Drug Administration (FDA) approval for diagnosis of Crohn's disease.
Given Imaging president and CEO Homi Shamir said, "Looking ahead, we are encouraged by several positive developments, including recovery of our core PillCam SB business in the EMEA region, which looks to be back on track, and the recent FDA decision to clear the marketing of PillCam SB in the US for use in monitoring lesions that may indicate Crohn's disease. Finally, we are making progress towards starting the PillCam Colon pivotal trials in the US and Japan."
Cash and cash equivalents totaled $83.9 million at the end of March. "We're constantly looking at companies, but there's no urgency," Shamir told "Globes". "We have plenty of internal growth engines, but if another company creates value for us, we'll buy it."
Given Imaging bought technologies and patents for a few million dollars during the first quarter. "During our normal business, we invest quite a lot of money in technological progress and maintaining our status in terms of patents. We don’t just buy companies," Given Imaging CFO Yuval Yanai told "Globes".
Shamir added that the company has 250 patents and 400 more in the pipeline. "We have more than 95% of the global market, but it's important for us to buy patents of other technologies or indications for the pill within the body."
Given Imaging's share price rose 1.1% on Nasdaq yesterday to $20.46, giving a market cap of $610 million, but lost the gain in after-hours trading. The share price fell 0.2% by mid-afternoon on the TASE today to NIS 68.40.
Published by Globes [online], Israel business news - www.globes-online.com - on May 5, 2011
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