American Medical Systems' Earnings Nearly Triple

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American Medical Systems Holdings(AMMD Quote) announced on May 5, 2009 that its Q1 FY09 earnings nearly tripled on improved margins, gain on the extinguishment of debt and lower interest expense. Net income surged to $17.08 million or $0.23 per share from $6.09 million or $0.08 per share in Q1 FY08. Non-GAAP earnings increased 68.8% to $18.79 million or $0.25 per share, which beat the consensus estimate of $0.15 per share.

Net sales grew 2.7% to $123.64 million from $120.36 million a year ago, driven by strong performances of its Men's Health and Women's Health segments, partly offset by its Benign Prostatic Hyperplasia (BPH) Therapy business. Looking at the company's business segments, the Men's Health segment's revenue advanced 12.9% to $59.46 million from $52.68 million, driven by strong demand for the male continence product line, including the continued success of the AdVance male sling and the AMS 800 with InhibiZone. Revenue from the Women's Health segment climbed 5.4% to $38.73 million from $36.75 million, driven by growth in the female continence and prolapse product line. The BPH Therapy segment's revenue slipped 17.7% to $25.45 million from $30.93 million, led by continued softness in capital equipment purchases and slowdown in certain foreign distributor markets. Geographically, revenue from the U.S increased 6.3% to $89.67 million, while international revenue dropped 5.6% to $33.97 million.

During Q1 FY09, American Medical received FDA clearance for its Elevate Anterior Prolapse Repair System, which provides a comprehensive solution for treating all types of prolapse.

Looking ahead to Q2 FY09, AMMD expects non-GAAP earnings to remain in the range of $0.22 per share to $0.26 per share. For FY09, the company reaffirmed its revenue guidance range of $495.00 million to $515.00 million.