Pillcam developer Given Imaging Ltd. (Nasdaq: GIVN; TASE: GIVN) reported second quarter earnings that beat analyst estimates after Wall Street markets closed yesterday. However, the company said that it now expects full year revenue to be at the low end of expectations.

Amid a wide selloff on Nasdaq, Given shares fell 5.4% yesterday to $14.39. In after-hours trading the shares dropped an additional 2.6%.

The company said it expects non-GAAP earnings per share of $0.76 - $0.84,similar to previous guidance. However, Given said that "as a result of the continued trend of lower utilization of healthcare services by Americans, and persistent global economic weakness, 2010 revenues will be in the lower range of guidance, previously updated to reflect the SSI acquisition on April 1, 2010, which is between $167 million and $174 million."

Second quarter revenue was $42.1 million, up 17% from the $36 million recorded in the corresponding quarter. The revenue figure includes $5.7 million revenue from Sierra Scientific Instruments (SSI) which the company acquired in April. Analysts had forecast $41.43 million revenue for Given.

The company said that global sales of existing PillCam SB products were essentially flat as Americans cut back on visits to the doctor and healthcare utilization in general was much lower in the second quarter due to economic uncertainty. Specifically, overall GI procedures have fallen considerably in the U.S. from levels a year ago. The European economic crisis associated with the weak Euro also negatively impacted European revenue growth

On a non-GAAP basis, net profit for the second quarter rose 10.5% to $6.3 million, ($0.20 per share), compared with net profit of $5.7 million ($0.19 per share) in the second quarter of 2009. The consensus estimate by analysts was $0.13 per share.

On a GAAP (generally accepted accounting principles) basis, net profit was $2.2 million, ($0.07 per share), compared to $4.9 million, ($0.16 per share) in the corresponding quarter.

Published by Globes [online], Israel business news - www.globes-online.com - on August 12, 2010

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