Biosensors International Group says it posted a 31.25% fall in net profit to US$3.2 million ($4.4 million) for its first quarter of fiscal year 2011 which ended on 30 June 2010 (1Q FY11) versus US$4.2 million for 1QFY10.
Excluding the restructuring charges related to the closure of the US operations, net profits would have been US$9.2 million.
Total revenue for 1Q FY11 grew to US$33 million from US$23.8 million, a 39% increase over 1Q FY10.
Biosensors says product sales growth for the quarter was primarily attributable to increased drug-eluting stent sales which grew to US$17.6 million in 1Q FY11 from US$11.5 million in 1Q FY10, an increase of 53%. The increase in drug-eluting stent sales is directly related to continued growth in sales of the company’s BioMatrix drug-eluting stent system.
Sales of other interventional cardiology products also increased by 14% to US$8.7 million from US$7.6 million in 1Q FY10, driven by increased OEM sales in Asia. Sales of critical care products remain constant at US$3.0 million.
Licensing revenue in 1Q FY11 was US$3.6 million, compared to US$1.4 million for 1Q FY10.
Jeffrey B. Jump, President and CEO, says: “Our operating profits remain strong, nearly double our 1Q FY10 operating profits. Our decision to close our US operations will help further reduce costs and simplify our operating structure. We believe that this closure will be completed by 31 December 2010. Key US staff and activities are being transferred to our existing operations hubs in Singapore and Switzerland. Our new structure will not only result in lower costs going forward, but will help reduce complexity and time-to-market for development of our next generation technologies.”
