Bos Sci takes hit for income, sales in Q1
Boston Scientific has reported sharply wider net losses for 2010 first quarter, which ended March 31.
Net sales for the first quarter of 2010 were $1.96 billion compared to net sales of $2.01 billion for the first quarter of 2009, according to the Natick, Mass.-based company.
Reported net loss for the first quarter of 2010 was $1.59 billion, compared with $13 million in net losses for the first quarter of 2009. The company said its reported results included goodwill and intangible asset impairment charges; acquisition- and restructuring-related net credits; and amortization expense (after-tax) of $1.84 billion, which consisted of:
"It was a challenging quarter including a settlement to resolve long-standing litigation, and the CRM ship hold and product removal actions," said Ray Elliott, president and CEO of Boston Scientific.
For the CRM unit, the U.S. sales for the 2010 first quarter were $326 million, compared with the 2009 first quarter $396 million. However, the company also noted that its 2010 sales of implantable cardioverter-defibrillators in the U.S. include the impact of the ship hold and product removal actions associated with these products during the quarter. Ship hold and product removal actions for these systems were enacted from March 15 through April 15. Also, the company booked gains for international CRM sales for the 2010 first quarter with $212 million—an increase of $19 million over the previous year-ago quarter.
For its coronary stent systems unit, which includes both drug-eluting and bare-metal stents, Boston Scientific said its U.S. stent sales were down $40 million to $222 million in the 2010 first quarter from the previous-year quarter. For its international sales, the company booked gains of $222 million, representing a $5 million decrease from the 2009 first quarter.
Net sales for the first quarter of 2010 were $1.96 billion compared to net sales of $2.01 billion for the first quarter of 2009, according to the Natick, Mass.-based company.
Reported net loss for the first quarter of 2010 was $1.59 billion, compared with $13 million in net losses for the first quarter of 2009. The company said its reported results included goodwill and intangible asset impairment charges; acquisition- and restructuring-related net credits; and amortization expense (after-tax) of $1.84 billion, which consisted of:
- $1.84 billion (on both a pre-tax and after-tax basis) of goodwill impairment charges associated with its U.S. cardiac rhythm management (CRM) unit;
- $51 million ($60 million pre-tax) of intangible asset impairment charges;
- $216 million ($250 million pre-tax) gain related to the receipt of an acquisition-related milestone payment from Abbott Laboratories;
- $56 million ($80 million pre-tax) of restructuring and restructuring-related costs associated with the its 2010 restructuring plan, plant network optimization program and 2007 restructuring plan; and
- $101 million ($128 million pre-tax) of amortization expense.
"It was a challenging quarter including a settlement to resolve long-standing litigation, and the CRM ship hold and product removal actions," said Ray Elliott, president and CEO of Boston Scientific.
For the CRM unit, the U.S. sales for the 2010 first quarter were $326 million, compared with the 2009 first quarter $396 million. However, the company also noted that its 2010 sales of implantable cardioverter-defibrillators in the U.S. include the impact of the ship hold and product removal actions associated with these products during the quarter. Ship hold and product removal actions for these systems were enacted from March 15 through April 15. Also, the company booked gains for international CRM sales for the 2010 first quarter with $212 million—an increase of $19 million over the previous year-ago quarter.
For its coronary stent systems unit, which includes both drug-eluting and bare-metal stents, Boston Scientific said its U.S. stent sales were down $40 million to $222 million in the 2010 first quarter from the previous-year quarter. For its international sales, the company booked gains of $222 million, representing a $5 million decrease from the 2009 first quarter.