Handheld-ultrasound developer SonoSite reported a net loss of $363,000 for the first quarter of 2006, compared with a net income of $725,000 during the same period last year.
Operating expenses increased by 22% to $27.1 million in the first quarter of this year, as compared with the same period in 2005. The increase in operating costs was due primarily to the company's investment in international sales and marketing infrastructure, Sonosite said.
On the up side, Sonosite reported an increase in worldwide revenue of 9% compared to the first quarter of 2005, up from $34.0 million to $36.9 million. The Bothell, WA-based firm's overall U.S. revenue grew 15% in the first quarter over last year, with direct sales revenues increasing by 45%.
U.S. enterprise sales, mainly governmental contracts, decreased by 57% for 2006's first quarter because of the high volume of project orders in the first quarter of 2005, in line with the firm's expectations. Changes in foreign currency rates, specifically in Japan, reduced SonoSite's international growth rate by 5%. U.S. revenue amounted to 49% of the company's total revenue; its MicroMaxx system accounted for 46% of the quarter's worldwide revenue, the company said.
The company expects second quarter revenue to grow by about 25% over the same period in 2005.
In executive news, SonoSite announced that its senior vice president, U.S. sales, Edison Russell, will retire as of June 30. Thomas Dugan, currently senior vice president, marketing, will be promoted to senior vice president, global marketing and U.S. sales.
By AuntMinnie.com staff writers
April 27, 2006
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