Spectranetics cuts losses in 2011 by nearly 90 percent
Spectranetics Corp. fell just short of its goal of getting back into the black in 2011 for the first time in four years, but told stockholders it expects to get there this year.
The Colorado Springs-based medical laser manufacturer cut its losses by nearly 90 percent and would have made a profit without $4.2 million in onetime charges from settlements with former executives and a license holder of its technology.
The company also told investors it expects to generate profits this year of $1.5 million to $3 million, or 4 cents to 8 cents a share. Spectranetics forecast that revenue will increase between 5 percent and 7 percent this year to between $133.5 million and $136.5 million, not including new products that are expected to launch at mid-year.
The company reduced its losses in 2011 to $1.48 million, or 4 cents a share, from $13.1 million, or 39 cents a share, during 2010, which included $15.5 million in one-time charges. Without the cost of the settlements and other one-time expenses, the company would have earned $2.68 million, or 8 cents a share. Revenue for last year rose 8 percent from 2010, or more than double the growth rate of 2010, to $127.3 million.
The settlement costs included $2 million that will limit further defense costs of former CEO John Schulte and two other executives now on trial in Denver federal court on 12 counts of import violations and defrauding the federal government. The company also took a $1.82 million charge after reaching an agreement with Minneapolis-based medical device giant Medtronic to end a nearly 15-year-old license agreement.
Spectranetics also reported that it lost $2.02 million, or 6 cents a share, during the fourth quarter, compared to a profit of $513,000, or 2 cents a share, during the same quarter a year earlier. Without the same one-time charges that resulted in the annual loss, the company would have earned $1.31 million, or 4 cents a share. Revenue during the quarter was up 11 percent to $32.5 million.
"This quarter's performance reflects our focus on accelerating revenue growth through sales execution and driving operational excellence," Spectranetics CEO Scott Drake said in a press release reporting the financial results. "Our expectation of continued growth allows for incremental investments while maintaining profitability. We are making targeted investments in our product portfolio, physician training, clinical evidence and peripheral artery disease awareness."
The new products include a new catheter designed to treat peripheral artery disease and next generation sheath to be used with its laser to make removal of infected pacemaker leads easier. The company also announced earlier this month it has received encouraging early results from a 90-patient clinical trial targeted at getting approval to use its laser to clear arteries that have previously been cleared and become blocked again.
Stockholders didn't react much to the company's results, leaving its stock unchanged at $8.32 at noon Thursday.
