Summary
Boston Scientific Corporation (BSX) reported its second-quarter and first-half 2011 financial results, showing modest top-line growth with a two percent increase in net sales for the quarter to $1.975 billion and a less than one percent increase for the first half to $3.900 billion. The company benefited from favorable foreign currency exchange rates, which boosted reported sales, though constant currency sales showed a slight decline in some segments. The company's net income for the second quarter was $146 million ($0.10 per share), up from $98 million ($0.06 per share) in the prior year. The first half of 2011 saw net income of $192 million ($0.12 per share), a significant improvement from a net loss of $1.491 billion ($0.98 per share) in the first half of 2010. This improvement was largely influenced by a substantial goodwill impairment charge in the prior year and a significant gain from the divestiture of its Neurovascular business in the current period. Despite positive net income, the company continued to experience pressure in its Cardiac Rhythm Management (CRM) segment due to market contraction and competitive factors, though other segments like Endoscopy and Peripheral Interventions showed stronger growth.
Financial Highlights
48 data points| Revenue | $1.98B |
| Cost of Revenue | $688.00M |
| Gross Profit | $1.29B |
| SG&A Expenses | $642.00M |
| Operating Expenses | $1.05B |
| Operating Income | $237.00M |
| Interest Expense | $73.00M |
| Net Income | $146.00M |
| EPS (Basic) | $0.10 |
| EPS (Diluted) | $0.10 |
| Shares Outstanding (Basic) | 1.53B |
| Shares Outstanding (Diluted) | 1.54B |
Key Highlights
- 1Net sales increased by 2% to $1.975 billion in Q2 2011 and by 0.3% to $3.900 billion in H1 2011, benefiting from favorable foreign currency exchange rates.
- 2Reported net income was $146 million ($0.10/share) for Q2 2011, an increase from $98 million ($0.06/share) in Q2 2010. First half net income was $192 million ($0.12/share), compared to a net loss of $1.491 billion ($0.98/share) in H1 2010.
- 3The company recorded a significant goodwill impairment charge of $697 million in Q1 2011 related to its U.S. Cardiac Rhythm Management (CRM) business due to market contraction.
- 4Boston Scientific completed the sale of its Neurovascular business in January 2011 for $1.5 billion, recognizing a pre-tax gain of $760 million.
- 5Acquisitions in structural heart therapy, deep-brain stimulation, peripheral vascular disease, and atrial fibrillation were completed in Q1 2011, totaling $370 million in cash consideration.
- 6Debt levels were reduced, with total debt decreasing to $4.201 billion as of June 30, 2011, down from $5.438 billion at the end of 2010.
- 7The company reported strong cash flow from operations of $293 million in the first half of 2011, significantly up from $2 million in the same period of 2010, which was partly impacted by large litigation payments.