Given Imaging Ltd. (Nasdaq: GIVN; TASE: GIVN) has published an unaudited financial report for the first quarter of 2007 in which it said that it had moved to profitability, amid double digit growth in sales. Despite missing the analysts' estimates, Given CEO Nahum (Homi) Shamir voiced optimism about the future, stressing that the company's revenue for 2007 would be at the higher end of its full-year guidance.
Company revenue for the first quarter rose 14% to $23.1 million, while gross margins fell to 73.9% from 74.6% in the corresponding quarter in 2006. Given Imaging posted a net profit, on a non-GAAP basis, of $1.2 million, or $0.04 per share, compared with a loss of $1.7 million or $0.06 per share in the corresponding quarter. This missed the analysts' estimates, which predicted earnings per share of $0.09 on $24.6 million revenue.
"We are pleased with this quarter's results which put us firmly on track to achieve our $114 million to $119 million guidance for 2007. We now expect our full year 2007 revenues to come near the higher end of this range" said Shamir. "We achieved strong PillCam SB sales this quarter particularly in the United States where PillCam SB sales increased by 23%." The analysts' consensus predict that the company will post annual sales of $116.06 million for 2007.
Yesterday Given Imaging announced that the Wisconsin Physicians Service (WPS), the Medicare Part B Carrier for Wisconsin, Illinois, Michigan and Minnesota, had revised its coverage policy which will now allow for the company's PillCam SB to be used as a primary diagnostic tool to evaluate patients with suspected but undiagnosed Crohn's disease, small bowel tumors and malabsorption syndrome. WPS serves around three million Medicare members.
Published by Globes [online], Israel business news - www.globes.co.il - on May 8, 2007
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