Given Imaging Ltd. (Nasdaq: GIVN; TASE: GIVN) published its financial report for the first quarter of 2008, and reiterated its full-year guidance, after Nasdaq closed yesterday. GAAP-based net profit rose 11-fold to $1.1 million ($0.03 per share) from $100,000 for the corresponding quarter of 2007. Worldwide sales totaled $27.1 million for the first quarter, up 18% on the $23.1 million for the corresponding quarter.
The share rose 0.5% on Nasdaq yesterday, and a further 3% in after-hours trading to $16.75, giving a market cap of $475 million.
Non-GAAP net profit was $100,000 for the first quarter, down from $1.6 million for the corresponding quarter. The company's net cash flow from operating activities totaled $6.9 million for the first quarter and it had 109.2 million in cash and cash equivalents at the end of March.
The non-GAAP income did not include certain litigation and other expenses, and also excluded a $5.4 million InScope Inc. gain. In November, InScope terminated a PillCam ESO distribution agreement with Given Imaging, and agreed to pay several million dollars in fees related to the termination.
PillCam sales accounted for 85% of revenue, down from 87% in 2007. A breakdown of PillCam sales showed strong growth in both Europe and Asia, while sales growth in the Americas was marginal. Asia-Pacific sales, mostly in Japan, rose 75% to $3.1 million, EMEA sales rose 39% to $8.2 million, and sales in the Americas rose 2% to $15.8 million.
Given Imaging also reiterated its guidance for 2008, predicting non-GAAP earnings per share of between $0.44 and $0.52 on $130-136 million revenue. This is slightly above the analysts' consensus of $129.4 million revenue. The company noted that its settlement with Olympus Corporation (TSE: 7733; DAX: OLY; Pink Sheets: OCPNY) will result in a GAAP earnings per share of $0.26-0.34 for 2008, not including a $2.33 million pre-tax payment that it expects to receive from Olympus when the settlement is finalized, which may result in additional pre-tax earnings per share of up to $0.08.
Given Imaging president and CEO Homi Shamir noted that the company's strategy to diversify revenue globally was paying off. He added that expense controls helped push non-GAAP net income to just above break even, beating expectations of a first quarter loss. Looking forward, he said, "We will continue to advance reimbursement in the largest European countries. At the same time, we are expanding our outreach in Japan to ensure that we penetrate that market as quickly as possible. In the Americas, our most important market, we're focused on increasing the use of PillCam SB for established indications including obscure GI bleeding, suspected Crohn's disease and iron deficiency anemia. In addition, we're leveraging new clinical data to expand utilization of PillCam SB for celiac disease and PillCam ESO for esophageal varices."
Published by Globes [online], Israel business news - www.globes-online.com - on May 14, 2008
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