Summary
Boston Scientific Corporation (BSX) reported its first-quarter 2015 financial results, showing a slight decrease in net sales to $1.768 billion from $1.774 billion in the prior year, largely due to unfavorable foreign currency exchange rates. Despite the flat top-line performance on a reported basis, the company saw a six percent increase in net sales when adjusting for currency fluctuations and divested businesses, indicating underlying operational growth. The company reported a net loss of $1 million ($0.00 per diluted share) for the quarter, a significant decline from a net income of $133 million ($0.10 per diluted share) in the first quarter of 2014. This downturn was primarily driven by substantial litigation-related charges of $193 million. Excluding these and other significant one-time items such as restructuring charges and amortization, adjusted net income was $286 million, or $0.21 per share, reflecting operational profitability. The company also continues to manage a complex legal and restructuring landscape, including significant litigation provisions.
Financial Highlights
51 data points| Revenue | $1.77B |
| Cost of Revenue | $520.00M |
| Gross Profit | $1.25B |
| SG&A Expenses | $668.00M |
| Operating Expenses | $1.22B |
| Operating Income | $24.00M |
| Interest Expense | $60.00M |
| Net Income | -$1.00M |
| Shares Outstanding (Basic) | 1.33B |
| Shares Outstanding (Diluted) | 1.33B |
Key Highlights
- 1Net sales were largely flat at $1.768 billion, but showed a 6% increase on a constant currency basis, indicating underlying growth.
- 2Reported a net loss of $1 million compared to a net profit of $133 million in the prior year, largely due to significant litigation charges.
- 3Excluding special items, adjusted net income was $286 million ($0.21 per share), highlighting operational profitability.
- 4Announced a definitive agreement to acquire Endo International plc's urology portfolio for $1.6 billion, expected to close in Q3 2015.
- 5Acquired Xlumena, Inc., a medical device company focused on minimally invasive gastrointestinal drainage devices.
- 6Cash used by operating activities was $(197) million, a decrease from $(198) million in the prior year, primarily due to substantial legal payments.
- 7The company maintained strong liquidity with $242 million in cash and cash equivalents and an undrawn $2.0 billion revolving credit facility.