ArthroCare ($ARTC) reported flat revenue and declining net income during its fiscal 2013 first quarter, though international product sales increases in some areas helped offset the stagnant numbers.
The surgical device maker booked nearly $11.2 million in net income during the quarter, down from close to $13 million in net income during the 2012 first quarter. Overall revenue, on the other hand, came in at $92.3 million, versus $92.9 million over the same period last year.
ArthroCare said it enjoyed small sales increases in sports medicine and contract-manufactured products. And while ear, nose and throat surgical product sales jumped 8.8% internationally, they declined 9.3% in the Americas, leading to a net decline of close to 6%. Overall, however, international product sales were a bright spot for the company, jumping 5.1% year-over-year.
Also worth noting: The company said it generated a lower gross margin compared to the 2012 first quarter, due in part to the 2.3% medical device tax, which kicked in on Jan. 1, 2013, as part of the Affordable Care Act.
Whatever the company's first quarter results, they reflect a quieter period for the company than in 2012. Last year, the company was rocked by the arrest of two former ArthroCare executives charged with defrauding investors out of more than $400 million over three years through the alleged false inflation of company earnings from Dec. 2005 through Dec. 2008. The company had tried to resolve the matter with a $74 million settlement in November 2011. ArthroCare has said it is cooperating with the Department of Justice in the investigation.
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