For Biosensors International, stability has become a good-enough result in fiscal 2014. As with the previous quarter, Q3 has given the Singapore device company more of the same--steady growth in revenue, but lower net profit due to restructuring and other one-time expenses.
Revenue came in at $82.5 million, up 6% over the same period last year. Net profit reached $11.1 million, or 65 cents per diluted share. That's a big drop from a net profit of just under $25 million, or $1.43 cents per diluted share, in the fiscal 2013 third quarter.
So what happened? On the plus side, Biosensors said it experienced modest revenue growth in its critical care products line. Interventional cardiology products also saw some revenue gains. Demand helped, but the company's $51 million acquisition of Spectrum Dynamics, which gave it access to high-definition cardiac medical imaging tech, continued to buttress those numbers.
Biosensors also maintained solid sales of its drug-eluting stents in parts of Asia, but a weak market in China depressed revenue, CEO Jack Wang said in a statement.
Net profit dropped in the face of restructuring and other one-time expenses, Biosensors said. And licensing and royalty revenue declined by double digits in Q3, year-over year.
For the rest of fiscal 2014, Biosensors warns that weak marketing conditions, lower royalty income and pricing pressures could lead to weak overall sales growth for the year, with drug-eluting stents likely to have flat revenue compared to 2013. That will be offset, in part, by some growth in certain markets in Asia and elsewhere.
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