Summary
Boston Scientific Corporation (BSX) reported a net loss of $664 million ($0.48 per share) for the third quarter of 2012, a significant decline from a net income of $142 million ($0.09 per share) in the same period last year. This loss was primarily driven by a substantial goodwill impairment charge of $748 million related to the U.S. Cardiac Rhythm Management (CRM) business unit. Excluding this and other charges, the company reported adjusted net income of $221 million ($0.16 per share). Net sales decreased by 7% to $1.735 billion in the third quarter of 2012 compared to $1.874 billion in the third quarter of 2011. This decline was attributed to lower sales in Interventional Cardiology and Cardiac Rhythm Management, partially offset by growth in Endoscopy and Peripheral Interventions. The company also reported strong operational cash flow of $891 million for the nine months ended September 30, 2012, and continued its share repurchase program.
Financial Highlights
52 data points| Revenue | $1.74B |
| Cost of Revenue | $558.00M |
| Gross Profit | $1.18B |
| SG&A Expenses | $589.00M |
| Operating Expenses | $1.77B |
| Operating Income | -$594.00M |
| Interest Expense | $65.00M |
| Net Income | -$664.00M |
| EPS (Basic) | $-0.48 |
| EPS (Diluted) | $-0.48 |
| Shares Outstanding (Basic) | 1.39B |
| Shares Outstanding (Diluted) | 1.39B |
Key Highlights
- 1Reported a net loss of $664 million for Q3 2012, largely due to a $748 million goodwill impairment charge in the U.S. CRM segment.
- 2Net sales declined by 7% year-over-year to $1.735 billion in Q3 2012.
- 3Adjusted net income (non-GAAP) was $221 million ($0.16 per share) for Q3 2012, compared to $223 million ($0.15 per share) in Q3 2011, indicating operational resilience.
- 4Operating cash flow for the first nine months of 2012 was strong at $891 million, an increase from $659 million in the prior year.
- 5The company continued to execute its share repurchase program, buying back approximately 46 million shares for $250 million in Q3 2012.
- 6Acquired Cameron Health, Inc. in June 2012, strengthening the S-ICD® system portfolio, with FDA approval received in Q3 2012.
- 7Gross profit margin improved to 67.8% in Q3 2012 from 63.7% in Q3 2011, driven by the shift to internally manufactured PROMUS® Element™ stent systems and cost reductions.