Despite a jump in device sales, Thoratec's ($THOR) second-quarter profits declined 2.8%, spurred by a 20% increase in operating expenses.
Thoratec's Q2 profits fell to $20.8 million, down from $21.8 million in the same period last year, and the increase in expenses came largely from investments in R&D.
Revenue, however, remains on the up and up, and Thoratec has increased the low end of its annual earnings projection by 4 cents, to $1.24 per share. The company also raised its full-year revenue projection to between $460 million and $470 million, up from the earlier-announced $452 million to $467 million.
Total sales increased by 6.8%, bringing in $118.7 million, and Thoratec's HeartMate line of ventricular pumps brought in $106.2 million on its own, an increase of 9%. The CentriMag blood pump saw its sales increase by 51%, to $8 million, while the company's long-running PVAD line of ventricular support devices declined 50%, to $3.8 million.
The HeartMate II pump, the latest generation in the line, saw its sales rise 13% on the quarter, despite a Class I recall in April. The pump forced Thoratec to issue new implantation instructions for the device after receiving 29 reports about a faulty component that could block blood flow if improperly installed.
In any case, the 6 months ending June 30 were the company's strongest in terms of revenue, CEO Gary Burbach said in a statement, and Thoratec is looking to expand its share in the ventricular assistance device market, plotting pivotal trials for HeartMate III and HeartMate PHP in 2013.
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