Read Larry Connors' blog – Short Term Trading Strategies
U.S. net revenues increased 10 percent to $10.4 million from $9.4 million in the third quarter of fiscal 2008. International net revenues were $2.1 million compared to $3.0 million. For the nine-month period, U.S. net revenues increased five percent to $28.4 million and international revenues increased five percent to $7.1 million.
Third quarter income before income taxes was $3.5 million compared to $4.7 million in the third quarter of 2008. Net income was $2.2 million, or $0.17 per diluted share, compared with $3.0 million, or $0.23 per diluted share.
For the nine months ended August 31, 2009, income before income taxes was $8.5 million, compared to $11.3 million a year ago. Net income was $5.3 million for the nine-month period, or $0.41 per diluted share, compared with $7.1 million, or $0.51 per diluted share in the same period of 2008.
Gross margin was 88 percent in the third quarter of fiscal 2009, compared to 86 percent in the fiscal 2008 third quarter, and was 87 percent for the nine-month period of 2009, the same as a year ago. Cash, marketable securities and long-term investments at August 31, 2009 totaled $77.7 million, with no borrowings.
"The global economic crisis continued to impact our business in the quarter with hospitals limiting capital spending and slowing adoption of new technology," said Bruce Barrett, Somanetics' president and chief executive officer. "Despite this backdrop, we continued to experience solid growth in our disposable sensor business."
International Sales
In the third quarter Somanetics announced the three-year extension of its long-standing exclusive distribution agreement with Covidien to distribute Somanetics' INVOS Cerebral/Somatic Oximeter products in Europe, the Middle East and Africa. The extension goes into effect on February 16, 2010, when the current agreement expires.
Sales and Marketing Activities
During the fourth quarter, Somanetics is scheduled to participate in 16 medical conferences, including the 2009 annual meeting of the American Society of Anesthesiologists and various regional and state cardiothoracic, perfusion, anesthesia, pediatric cardiac and critical care and neonatology association meetings.
Vital Sync Launch
The Vital Sync(TM) patient data management system was launched in the third quarter with installations at three beta test sites. The device integrates data from a broad array of hospital bedside devices, such as physiological monitors and ventilators, into a single bedside display for comparison, data management and storage. It has been designed to reduce the time and effort required to collect and organize critical patient data and view patient parameters on one time-synchronized graph. The device compiles data into one interactive display, to facilitate early detection of worsening patient conditions and provide data to refine treatment protocols.
Business Outlook
Somanetics is reiterating its previously announced guidance:
-- Fiscal 2009 net revenues between $50 million and $52 million.
-- Gross margin of approximately 86 percent and operating margin of
approximately 20 percent.
-- Fiscal 2009 income before income taxes in the range of $11.2 million to
$11.6 million.
Current estimates are based on market and economic conditions, including the assumption that the current economic downturn continues throughout fiscal 2009, and Somanetics' current plans to invest in several areas of its business. Such investments include clinical research, medical education, research and development projects, the continued development and market launch of the Vital Sync System and the addition of sales and clinical education personnel in the U.S. and international markets. Somanetics undertakes no obligation to update its estimates.
Somanetics to Host Conference Call
Somanetics will webcast its third quarter 2009 conference call at 10:00 a.m. (ET) today. To join the webcast, visit the Presentations & Webcasts page in the Investor Relations section of Somanetics' website at www.somanetics.com and click on the "Q3 2009 Somanetics Corporation Earnings Conference Call" link. The call also will be archived on the website.
About Somanetics
Somanetics Corporation (Nasdaq: SMTS | Quote | Chart | News | PowerRating) develops, manufactures and markets the INVOS((R)) Cerebral/Somatic Oximeter which noninvasively provides accurate, real-time blood oxygen measurements in patients greater than 2.5 kilograms, and trend monitoring of this parameter for individuals of any weight. The INVOS System is the only commercially-available cerebral/somatic oximeter proven to improve outcomes. Surgeons, anesthesiologists and other medical professionals can use data provided by the INVOS System, in conjunction with other available data, to identify oxygen imbalances in brain or other body tissue beneath the sensor and take necessary corrective action, potentially improving patient outcomes and reducing the costs of care. The INVOS System is the clinical reference standard in cerebral/somatic oximetry, with an 11-year market track record, more than 700 clinical references and implementation at more than 700 U.S. hospitals. Somanetics also develops, manufactures and markets the Vital Sync(TM) System, a device that integrates data from bedside devices into a single system for enhanced patient assessment and decision making, data management and data storage. Somanetics supports its customers through a direct U.S. sales force and clinical education team. Covidien markets INVOS System products in Europe, Canada, the Middle East and Africa and Edwards Lifesciences represents INVOS System products in Japan. For more information visit www.somanetics.com.
Safe-Harbor Statement
Except for historical information contained herein, the matters discussed in this news release, including financial guidance for fiscal year 2009, are forward-looking statements, the accuracy of which is necessarily subject to risks and uncertainties. Actual results may differ significantly from results discussed in the forward-looking statements and may be affected by, among other things, economic conditions in general and in the healthcare market, including the recent global economic crisis, the demand for and market acceptance of our products in existing market segments and in new market segments we plan to pursue, our current dependence on the INVOS Cerebral/Somatic Oximeter and disposable sensors, our dependence on distributors for a substantial portion of our sales, our dependence on single-source suppliers, potential competition, the effective management of our growth, our ability to attract and retain key personnel, the potential for products liability claims, government regulation of our business, the challenges associated with developing new products and obtaining and maintaining regulatory approvals if necessary, research and development activities, the lengthy sales cycle for our products, sales employee turnover, changes in our actual or estimated future income, changes in accounting rules, enforceability and the costs of enforcement of our patents, potential infringements of others' patents, the effect of acquisitions and the other factors set forth from time to time in Somanetics' Securities and Exchange Commission filings, including Somanetics' 2008 Annual Report on Form 10-K filed on February 11, 2009 and its 2009 Quarterly Reports on Form 10-Q filed on March 31, 2009 and July 1, 2009.
(Tables to follow)
BALANCE SHEETS
August 31, November 30,
2009 2008
---- ----
ASSETS (Unaudited) (Audited)
CURRENT ASSETS:
Cash and cash equivalents $20,724,822 $37,166,141
Marketable securities 28,988,437 19,992,545
Accounts receivable 7,924,399 7,862,103
Inventory 3,665,636 2,960,422
Prepaid expenses 363,007 597,460
Accrued interest receivable 184,409 16,667
Deferred tax asset - current 164,615 164,615
------- -------
Total current assets 62,015,325 68,759,953
---------- ----------
PROPERTY AND EQUIPMENT (at cost):
Demonstration and no capital cost sales
equipment at customers 4,322,125 3,919,296
Machinery and equipment 1,923,695 1,638,597
Furniture and fixtures 545,796 504,485
Leasehold improvements 197,450 197,450
------- -------
Total 6,989,066 6,259,828
Less accumulated depreciation and
amortization (4,021,496) (3,418,697)
---------- ----------
Net property and equipment 2,967,570 2,841,131
--------- ---------
OTHER ASSETS:
Long-term investments 28,002,534 12,837,710
Deferred tax asset - non-current 1,782,977 1,587,977
Intangible assets, net 237,081 246,318
Goodwill 1,679,713 1,679,713
Other 15,000 15,000
------ ------
Total other assets 31,717,305 16,366,718
---------- ----------
TOTAL ASSETS $96,700,200 $87,967,802
=========== ===========
LIABILITIES AND SHAREHOLDERS' EQUITY
CURRENT LIABILITIES:
Accounts payable $1,045,984 $1,271,058
Accrued liabilities 1,275,659 1,848,672
--------- ---------
Total current liabilities 2,321,643 3,119,730
--------- ---------
COMMITMENTS AND CONTINGENCIES
SHAREHOLDERS' EQUITY:
Preferred shares; authorized, 1,000,000
shares of $.01 par value; no shares
issued or outstanding --- ---
Common shares; authorized, 20,000,000
shares of $.01 par value; issued and
outstanding, 12,088,962 shares at
August 31, 2009, and 12,034,074 shares at
November 30, 2008 120,890 120,341
Additional paid-in capital 95,551,450 91,330,305
Accumulated deficit (1,293,783) (6,602,574)
---------- ----------
Total shareholders' equity 94,378,557 84,848,072
---------- ----------
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY $96,700,200 $87,967,802
=========== ===========
STATEMENTS OF OPERATIONS
(Unaudited)
Three Months Nine Months
Ended August 31, Ended August 31,
---------------- ----------------
2009 2008 2009 2008
---- ---- ---- ----
NET REVENUES $12,513,135 $12,367,988 $35,500,049 $33,801,326
COST OF SALES 1,542,901 1,717,858 4,727,137 4,413,939
--------- --------- --------- ---------
Gross Margin 10,970,234 10,650,130 30,772,912 29,387,387
---------- ---------- ---------- ----------
OPERATING EXPENSES:
Research, development
and engineering 476,184 332,236 1,395,926 894,574
Selling, general and
administrative 7,277,898 6,155,551 21,765,806 19,423,534
--------- --------- ---------- ----------
Total operating
expenses 7,754,082 6,487,787 23,161,732 20,318,108
--------- --------- ---------- ----------
OPERATING INCOME 3,216,152 4,162,343 7,611,180 9,069,279
--------- --------- --------- ---------
OTHER INCOME:
Interest income 312,271 562,178 912,493 2,197,280
------- ------- ------- ---------
Total other income 312,271 562,178 912,493 2,197,280
------- ------- ------- ---------
INCOME BEFORE INCOME
TAXES 3,528,423 4,724,521 8,523,673 11,266,559
--------- --------- --------- ----------
INCOME TAX EXPENSE (1,299,377) (1,678,067) (3,214,882) (4,139,424)
----------- ----------- ----------- -----------
NET INCOME $2,229,046 $3,046,454 $5,308,791 $7,127,135
---------- ---------- ---------- ----------
NET INCOME PER COMMON
SHARE - BASIC $0.18 $0.25 $0.44 $0.55
----- ----- ----- -----
NET INCOME PER COMMON
SHARE - DILUTED $0.17 $0.23 $0.41 $0.51
----- ----- ----- -----
WEIGHTED AVERAGE
SHARES OUTSTANDING
- BASIC 12,088,962 12,079,089 12,061,559 12,889,638
========== ========== ========== ==========
WEIGHTED AVERAGE
SHARES OUTSTANDING
- DILUTED 12,957,120 13,247,953 12,926,752 13,919,212
========== ========== ========== ==========
SOURCE Somanetics Corporation
http://www.somanetics.com
More News:
Market Updates |
Stock Alerts |
All Trading News |
Stock Index
About TradingMarkets | Contact | Advertise | Careers | Link to Us | Site Map | Help | Terms & Conditions | Privacy Policy | Return Policy | Testimonials | Feedback
The Connors Group, Inc. ("Company") is not an investment advisory service, nor a registered investment advisor or broker-dealer and does not purport to tell or suggest which securities or currencies customers should buy or sell for themselves. The analysts and employees or affiliates of Company may hold positions in the stocks, currencies or industries discussed here. You understand and acknowledge that there is a very high degree of risk involved in trading securities and/or currencies. The Company, the authors, the publisher, and all affiliates of Company assume no responsibility or liability for your trading and investment results. Factual statements on the Company's website, or in its publications, are made as of the date stated and are subject to change without notice.
It should not be assumed that the methods, techniques, or indicators presented in these products will be profitable or that they will not result in losses. Past results of any individual trader or trading system published by Company are not indicative of future returns by that trader or system, and are not indicative of future returns which be realized by you. In addition, the indicators, strategies, columns, articles and all other features of Company's products (collectively, the "Information") are provided for informational and educational purposes only and should not be construed as investment advice. Examples presented on Company's website are for educational purposes only. Such set-ups are not solicitations of any order to buy or sell. Accordingly, you should not rely solely on the Information in making any investment. Rather, you should use the Information only as a starting point for doing additional independent research in order to allow you to form your own opinion regarding investments. You should always check with your licensed financial advisor and tax advisor to determine the suitability of any investment.
HYPOTHETICAL OR SIMULATED PERFORMANCE RESULTS HAVE CERTAIN INHERENT LIMITATIONS. UNLIKE AN ACTUAL PERFORMANCE RECORD, SIMULATED RESULTS DO NOT REPRESENT ACTUAL TRADING AND MAY NOT BE IMPACTED BY BROKERAGE AND OTHER SLIPPAGE FEES. ALSO, SINCE THE TRADES HAVE NOT ACTUALLY BEEN EXECUTED, THE RESULTS MAY HAVE UNDER- OR OVER-COMPENSATED FOR THE IMPACT, IF ANY, OF CERTAIN MARKET FACTORS, SUCH AS LACK OF LIQUIDITY. SIMULATED TRADING PROGRAMS IN GENERAL ARE ALSO SUBJECT TO THE FACT THAT THEY ARE DESIGNED WITH THE BENEFIT OF HINDSIGHT. NO REPRESENTATION IS BEING MADE THAT ANY ACCOUNT WILL OR IS LIKELY TO ACHIEVE PROFITS OR LOSSES SIMILAR TO THOSE SHOWN.
The Connors Group, Inc.
10 Exchange Place, Suite 1800
Jersey City, NJ 07302
© Copyright 2009 The Connors Group, Inc.