Gastrointestinal diagnostic company Given Imaging Ltd. (Nasdaq: GIVN; TASE: GIVN) yesterday published its financial report for the third quarter of 2007.
Given Imaging posted $27.7 million in revenue, up 15% over the corresponding quarter in 2006. Non-GAAP net profit soared 153% to $4.7 million, $0.15 per share. Gross margin decreased to 74.3% from 74.8% in the corresponding quarter last year.
Given Imaging's results were therefore mixed in relation to the analysts' estimates, which predicted non-GAAP earnings per share of $0.10 on $30.7 million revenue. The company also lowered its full year revenue guidance for 2007 but reiterated its earnings per share guidance of $0.34-44 on a non-GAAP basis. Given Imaging's top line for 2007 as a whole is expected to increase by around 15-18% to $109-112 million.
Given Imaging's net profit on a GAAP-basis for the third quarter rose 123% to $1.7 million, or $0.05 per share, and its earnings per share for 2007 as a whole are expected to come in at $0.21-0.31. The company had $103.3 million in cash, cash equivalents, and marketable securities at the end of the quarter. Given Imaging noted that its non-GAAP results for January-September did not include a provision of $4 million for the adoption of US Securities and Exchange Commission (SEC) Financial Accounting Statement 123R for employee stock option plans, and patent litigation expenses totaling $2.8 million.
Given Imaging president and CEO Homi Shamir said, "Revenue in the third quarter and our expected revenue for fiscal year 2007 have been impacted by several factors - first, a delay in our plan to bring PillCam Colon to the U.S. market this year as a result of our ongoing discussions with the US Food and Drug Administration regarding clearance of PillCam COLON; second, the delay associated with receiving a monetary code for PillCam SB in France which we now expect to occur in the first half of 2008; and third, a shortfall in sales in one of our US regions where actions have been taken to address operational issues."
Published by Globes [online], Israel business news - www.globes.co.il - on November 1, 2007
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