Kensey Nash 2Q profit down 9 percent as sales fall
Medical device company Kensey Nash Corp. said Tuesday its profit fell 9 percent in the fiscal second quarter as high unemployment and a difficult market for health insurance hurt its sales.
Kensey Nash said its profit fell to $3.3 million in the three-month period that ended Dec. 31, from $3.7 million a year earlier. Because the company has fewer shares on the market than it did a year ago, its per-share profit grew to 38 cents from 32 cents. Its revenue declined 9 percent, to $17.4 million from $19.1 million.
Analysts expected a profit of 40 cents per share and $17.3 million in revenue, according to estimates compiled by FactSet.
The company had about 9 million shares on the market at the end of the quarter, down from 11 million at the end of the second quarter of fiscal 2010.
The company said revenue from orthopedic products fell to $4.8 million from $6 million, and cardiovascular product sales fell to $4.1 million from $4.3 million. General surgery product sales rose to $1.4 million from $1.1 million, and sales of other biomaterial products rose to $300,000 from $200,000. Endovascular revenue fell to $300,000 from $800,000. Royalty revenue fell to $6.5 million from $6.6 million.
Kensey Nash said it expects revenue to improve in the next few quarters. It said orders are starting to pick up as its larger customers finish their inventory reduction efforts. However it cut its annual profit and revenue forecasts. The company now expects a profit of $1.70 to $1.75 per share for the fiscal year ending June 30, on $73 million to $75 million in revenue.
It had previously forecast a profit of $1.75 to $1.80 per share and $75 million to $78 million in revenue. Analysts expect $1.73 per share and $74.6 million.
Shares of Kensey Nash fell 17 cents to $24.16 in afternoon trading.