Haemonetics Corp. said Monday net income slid 5 percent in its first fiscal quarter, dragged down by a product recall. The maker of blood collection and processing systems also lowered its earnings expectations for fiscal 2012.
Shares of the Braintree, Mass., company sank in afternoon trading
Haemonetics earned $16.9 million, or 65 cents per share, in the three months that ended July 2. That compares with net income of $17.9 million, or 70 cents per share, in last year's quarter.
Revenue rose nearly 5 percent to $170.6 million.
Analysts surveyed by FactSet expected, on average, earnings of 78 cents per share on $170.4 million in revenue.
Haemonetics said plasma disposables revenue grew 12 percent to $63 million and platelet disposables revenue grew 3 percent to $37 million. But OrthoPAT transfusion system disposables revenue fell 13 percent in the quarter to $8 million. The company said sales were hurt by a voluntary recall of some of its devices.
"From an earnings perspective, we simply could not overcome the headwind that the OrthoPAT recall represented in the quarter despite the relative strength of our other businesses," CEO Brian Concannon said in a statement.
The company also saw operating expenses rise, as research and development costs grew about 9 percent to $8.6 million.
Haemonetics now expects adjusted earnings to range between $3.35 and $3.45 per share for the year. That's down from a May forecast for earnings of $3.50 to $3.62 per share.
Analysts expect, on average, earnings of $3.54 per share.
Company shares tumbled more than 11 percent, or $7.58, to $57.92 in afternoon trading.