A surge in sales within its peripheral vascular segment buoyed fiscal second-quarter (end-June 29) results for interventional device firm ev3, but not enough to avoid a greater net loss.
Net sales for the Plymouth, MN, company increased 65% to $107.7 million in the quarter, compared with $65.4 million in the second quarter of 2007 (end-July 1). ev3's net loss for the second quarter increased to $27.4 million, compared with $11.9 million in the second quarter of 2007.
The greater net loss is due, in part, to the termination of ev3's license agreement with pharmaceutical firm Merck of Whitehouse Station, NJ. ev3 recorded a one-time, noncash impairment charge of approximately $10.5 million in the second quarter. The company also expects to lose approximately $4.1 million in revenues in the second half of 2008 from the loss of the Merck contract.
For the six-month period, net sales increased to $209 million, a hike of 64% from $126.9 million in the same period of 2007. The net loss rose to $37.2 million, compared with a net loss of $21.4 million in the previous year's six-month period.
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