Singapore's Biosensors International can thank an acquisition and growing sales of stents and other cardiac devices for generating gains in 2014 second quarter revenue. But the restructuring led to a dent in profits, and the company lowered its full-year guidance based on overall weak market conditions.
Revenue reached $83 million during the quarter, up 4% from $79.8 million over the same period last year. Net profit reached $11.3 million, however, versus $28.2 million in net profit through the 2013 second quarter, hampered by restructuring and other one-time expenses.
Biosensors said its interventional cardiology product sales grew 7% during the quarter. Broader demand in some markets drove the numbers, as well as the company's $51 million acquisition of Spectrum Dynamics, a maker of high-definition cardiac medical imaging technology. Biosensors crowed about other accomplishments including CE marks for its BioPath and BioStream drug-eluting balloon treatments to combat peripheral artery disease and coronary artery disease. China's approval of Spectrum's D-SPECT cardiac imaging system added fuel to the company's advance, executives said, with stent sales in emerging markets continuing to grow.
But there are some points of concern. The company achieved double-digit sales growth in Europe, the Middle East, Africa and Asia, but saw this partly offset by lower average selling prices. Biosensors also noted that the market has weakened in China and placed some pressure on revenue there. Also, licensing and royalty revenue dropped during the quarter to $10.8 million, a 25% plunge from $14.3 million in the fiscal 2013 second quarter.
Biosensors CEO Jack Wang said in a statement that the quarter was an improvement over the previous one, and he noted that the "decline in our royalty income began to moderate" over previous quarters.
He added that in the wake of new product approvals, Biosensors is continuing "multiple product launch plans to generate new revenues for the company" and that it would continue to restructure to boost efficiency and improve profitability. Also, the company has lowered its guidance to point to "moderately positive" growth over fiscal 2013, a come-down from projections of 15% growth earlier this year.
"We believe that the reorganization is necessary for us to better position ourselves to deliver our long-term goals," he said.
Biosensors, which launched in 2006, is headquartered in Singapore, but maintains its sales and marketing operations in Switzerland.
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