Given Imaging sees 2013 growth

The pill camera company's fourth quarter net profit rose 3% to $7.9 million on $48.7 million revenue.

Pill camera developer Given Imaging Ltd. (Nasdaq: GIVN; TASE: GIVN) reported net profit growth on flat revenue for the fourth quarter and full year of 2012, but forecasts growth in 2013, despite reducing its profit forecast because of a new tax in the US.

Fourth quarter revenue edged up $48.7 million from $48.5 million for the corresponding quarter 2011. GAAP-based net profit fell to $5.1 million ($0.16 per share) for the fourth quarter from $5.6 million for the corresponding quarter, but non-GAAP net profit rose 3% to $7.9 million ($0.25 per share) from $7.7 million.

Full-year revenue rose 1% to $180.5 million from $178 million in 2011. GAAP-based net profit rose 20% to $14.4 million ($0.45 per share) in 2012 from $12 million in 2011, and non-GAAP net profit rose 12% to $22.6 million ($0.72 per share) from $20.1 million.

Given Imaging beat the analysts' 2012 earnings per share consensus of $0.68, but missed the revenue consensus of $202.3 million, but beat the fourth quarter earnings per share consensus of $0.15 and revenue consensus of $48.2 million.

In its full-year guidance for 2013, Given Imaging forecasts GAAP-based earnings per share of $0.55-0.63 and non-GAAP earnings per share of $0.80-0.88 on $195-205 million revenue. It reduced its earnings per share estimate by $0.08 due to the newly imposed Medical Device Tax in the US. The guidance is below the analysts' revenue consensus of $234.6 million, but meets the earnings per share consensus of $0.85.

Cash flow from operations totaled $11 million for the fourth quarter and $27.8 million in 2012, and the company had $124.1 million in cash and cash equivalents at the end of the year.

A 6% increase in sales in the Americas to $115.1 million in 2012 from $108.8 million in 2011, was offset by a 5% drop in Europe, Middle East and Africa sales to $42.9 million from $45.1 million, and a 6% drop in Asia-Pacific to $22.5 million from to $24 million, due to weaker sales in China, Japan, and Australia. Global sales of functional GI diagnostics products rose 8% to $53 million in 2012 from $48.2 million in 2011.

Global PillCam SB (small bowel) sales rose 2% to 235,700 capsules in 2012 from 232,200 capsules in 2011. Higher sales in the Americas and Asia-Pacific were offset by lower sales in Europe and the Middle East.

"We expect 2013 to be a pivotal year for Given Imaging and our goal is to return to double-digit revenue growth as we expand the market for our comprehensive line of devices to visualize, detect, and monitor disorders in the digestive tract and introduce new, innovative products, including our next-generation capsule endoscope for the small bowel, PillCam SB3. We plan to launch PillCam SB3 in Europe this quarter and in the US later this year," said Given Imaging president and CEO Homi Shamir.

Published by Globes [online], Israel business news - www.globes-online.com - on February 13, 2013

© Copyright of Globes Publisher Itonut (1983) Ltd. 2013

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