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Haemonetics 1Q profit slips but tops expectations

Mon, 08/02/2010 - 7:45am
The Associated Press

Blood collection and processing systems maker Haemonetics Corp. said Monday its net income dipped 1 percent in the fiscal first quarter but still topped Wall Street expectations as strong sales of platelet disposables offset a decline in its plasma business.

Haemonetics said earnings slipped to $17.9 million, or 70 cents per share, in the quarter ended July 3. That compares with $18.1 million, or 69 cents per share, a year ago. Excluding one-time costs Haemonetics said it earned 74 cents per share. Revenue increased 6 percent to $163 million from $154.1 million.

Analysts were expecting a profit of 72 cents per share on slightly higher revenue of $167.9 million, according to Thomson Reuters. Analyst estimates usually leave out one-time costs and gains.

In the first quarter, platelet disposable revenue rose 6 percent to $36.3 million as business in Europe and Latin America recovered, and sales in Asia were strong. Revenue for the OrthoPAT autotransfusion system, diagnostic diposables, software services and equipment revenue all increased.

The company said plasma disposable revenue fell 5 percent to $55.9 million. The company reported a strong quarter for that business one year ago, with revenue rising 26 percent as long-term contracts went into effect. The company expects plasma revenue to improve, and thinks revenue from that business will grow a total of 6 percent to 8 percent in the fiscal year. Red blood cell disposables revenue slipped 4 percent to $11.3 million because of declining demand for blood, while surgical disposable revenue fell 6 percent to $16.4 million.

Haemonetics also said the stronger dollar hurt its sales.

Haemonetics added that Chairman Brad Nutter plans to retire Nov. 1. Nutter was president and CEO from April 2003 to March 2009, and has been chairman since January 2009. He will be replaced by Brian Concannon, who has been president and CEO since April 2009.

For the year, the company maintained a forecast of $3.15 to $3.25 per share in profit, with revenue rising 9 to 12 percent. That suggests a total of $703.5 million and $722.8 million. Analysts are expecting a profit of $3.19 per share and revenue of $711.4 million, on average.

Haemonetics shares rose 40 cents to $55.65 in morning trading.

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