Given Imaging Ltd. (Nasdaq: GIVN; TASE: GIVN) continued to suffer from weakness in its primary market for its endoscope gastrointestinal capsules, the US, in the second quarter of 2011, but enjoyed growth in other markets.
Revenue rose 6.3% to $44.8 million for the second quarter of 2011 from $42.1 million for the corresponding quarter of 2010.
GAAP-based net profit fell to $1.9 million ($0.06 per share) from $2.2 million for the corresponding quarter, and non-GAAP net profit fell one third to 4.1 million ($0.13 per share) from $6.3 million.
Given Imaging beat the analysts' consensus of $0.08 earnings per share on $40 million revenue. It reiterated its full year-guidance of non-GAAP earnings per share of $0.65-0.70 on $165-173 million revenue.
Cash flow from operations was $5.1 million in the second quarter, bringing the company's cash and cash equivalents to $91.5 million.
Given Imaging president and CEO Homi Shamir said, "We are also encouraged by revenue growth of 14% in the EMEA region in the first six months of 2011, and confident that we will achieve our full year revenue goal for the region. Therefore, our 2011 guidance remains unchanged, despite the challenges of the global economy."
Given Imaging's revenue in the Americas region rose 4% to $26.9 million for the second quarter from $25.9 million for the corresponding quarter. Europe, Middle East and Africa sales edged up to $11.8 million from $11.6 million, but Asia-Pacific revenue jumped 30% to $6 million from $4.6 million.
Although worldwide sales of Given Imaging's primary product, the PillCam SB (small bowel) fell to 58,700 capsules in the second quarter from 59,900 capsules in the corresponding quarter, revenue increased. CFO Yuval Yanai said, "The reason is a combination of sales of the capsule's new version and increased sales of products of Sierra Scientific Inc. and the Bravo pH Monitoring System, which we previously acquired."
Given Imaging's share price rose 0.6% on Nasdaq yesterday to $19.18, giving a market cap of $572 million, but fell 3.2% by mid-afternoon on the TASE today to NIS 63.55.
Published by Globes [online], Israel business news - www.globes-online.com - on August 4, 2011
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