Interventional device firm Guidant reported record 2004 fiscal second-quarter revenues of $939 million, up 1% from the $927 million in sales posted in the same period in 2003.
For the quarter (end-June 30), the Indianapolis-based firm had net income of $136 million, a sharp turnaround compared with a net loss of $82 million in the second quarter of 2003.
Guidant said foreign currency translations favorably impacted revenue by $17 million. The firm's revenue growth was led by implantable defibrillators; biliary, peripheral and cardiac surgery therapies; and angioplasty products and cardiac pacemakers, Guidant said.
Guidant also noted that its financial performance was impacted by erosion in its coronary stent business, which it attributed to increased acceptance of drug-eluting stents and intensified competitive pressures in Japan, where the company experienced a 60% decline in stent revenue compared with 2003.
The company said a corporate-wide "management action" will be taken to offset the decline in its coronary stent business. Guidant said it will record a pre-tax restructuring charge of $50 million - $70 million in the third quarter of 2004, which includes severance, benefits packages for affected employees, contract termination costs, and other related costs.
Guidant said that its sales and earnings guidance for its third quarter will be $890 million - $930 million, and its fiscal 2004 sales and earnings guidance is set at $3.65 billion - $3.75 billion.
By AuntMinnie.com staff writersJuly 23, 2004
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