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Sirona boosts outlook after 1Q profit climbs

Fri, 02/04/2011 - 7:45am
The Associated Press

LONG ISLAND CITY, N.Y. (AP) — Sirona Dental Systems Inc. said Friday its profit jumped 36 percent in the fiscal first quarter, and the dental equipment maker's shares surged as the company raised its full-year guidance.

Sirona said its profit rose to $42.4 million, or 75 cents per share, in the three months ended Dec. 31. Excluding expenses such as amortization and depreciation costs, its profit rose to 96 cents per share. That's up from $31.2 million, or 55 cents per share, a year ago, or 81 cents per share excluding special items.

Revenue climbed 10 percent to $235.6 million from $214.8 million.

Analysts expected a profit of 78 cents per share and $223.5 million in revenue, according to FactSet.

Quarterly revenue from treatment centers rose 13.5 percent, revenue from computer-aided restoration systems rose 12.9 percent, and imaging system revenue grew 7.4 percent. Instrument revenue was virtually flat.

International revenue rose 13.8 percent because of stronger sales in Europe, especially Germany, and in the Asia-Pacific region. U.S. sales grew 0.9 percent. Sirona said changes in currency exchange rates reduced its total revenue by about 6 percent.

The company raised its operating income and revenue expectations for the fiscal year, citing good results in all its businesses and particularly strong international sales.

Sirona now expects operating income of $208 million to $216 million in the fiscal year ending Sept. 30, and said its revenue should grow 9 to 12 percent. That suggests a total of $839.6 million to $862.7 million. Previously the company had forecast a profit of $200 million to $208 million, with revenue up 7 to 9 percent, to $824.2 million to $839.6 million.

The operating income estimate excludes $54 million in amortization costs.

Analysts expect the company to earn $2.77 per share in the current fiscal year, on $831 million in revenue.

Sirona shares were already trading around all-time highs, and in midday trading, the stock jumped $4.30, or 9.5 percent, to $49.46. Earlier the shares peaked at $51.88.

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