R&D expenses clip Thoratec's profits, shares slide more than 6%
Shares of Thoratec Corp. lost more than 6% today after the medical device company said its 2nd-quarter profits were down nearly 5% on increased operating costs, largely from higher spending on research & development.
The Pleasanton, Calif.-based medical device company reported profits of $20.8 million, or 35¢ per share, on sales of $118.7 million. That amounts to revenue growth of 6.7% but a bottom-line slide of 4.5%, compared with the same period last year.
CEO Gary Burbach said that, although Thoratec is "very committed to our strategic investments, both in terms of product development as well as market development," the 25% growth rate of its operating expenses during the first 6 months of the year will abate during the 2nd half of 2012 and into 2013.