Diagnostics firm Alere ($ALR) reported sales growth in most of its units in the second quarter, but all that was negated by the charges an fallout from its heart test recall.
Alere reported an $18.2 million loss on the quarter, more than quadrupling 2011's losses in the same period--and that's despite posting $700.5 million in revenue, a 24% hike over the previous year. To blame for the earnings drop: $82 million in one-time charges related to restructuring, acquisitions and the company's large-scale recall of its Triage heart diagnostics.
Back in May, Alere recalled more than 800,000 units of its cardiac tests in response to FDA concerns over quality control and production. And while the company says it has since rectified the issue, the ensuing costs still left a mark on its earnings.
But, aside from its Triage woes, Alere had a huge quarter. Revenue from its professional diagnostics unit rose 33% to $538 million, and Alere's recently launched diabetes business brought in $36.8 million. Furthermore, Alere's toxicology revenue skyrocketed, jumping 80% to $159.9 million.
And the company is expanding into the mobile space, too, teaming with AT&T to create a diabetes management app that will provide real-time feedback on blood glucose levels through Alere's clinical care system, the company said.
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