CardioNet Reports 3Q Loss As It Restructures
CONSHOHOCKEN, Pa. (AP) ¿ Wireless heart-monitoring device maker CardioNet Inc. fell to a loss in the third quarter, as it had ramped up marketing spending after Medicare lowered reimbursement rates on the company's products.
CardioNet said it lost $5.4 million, or 23 cents per share, company with a year-ago profit of $987,000, or 4 cents per share. Revenue grew 7 percent, to $33.3 million from $31.2 million.
However analysts were expecting a profit of 3 cents per share and revenue of $37.1 million.
Excluding restructuring charges, CardioNet said it lost $4.6 million. The company said patient volume rose 47 percent from a year ago, but that was mostly canceled out by lower Medicare payments.On Sept. 1, Medicare administrator Highmark Medicare Service confirmed it would reduce the reimbursement rate on mobile heart technology, which includes CardioNet devices, to $754 per service. In response to the 33 percent cut, CardioNet said it needed to make new efforts to drive up sales and gain market share, as well as cut costs. So far the company said it has eliminated $8 million in spending for 2010. In aftermarket trading, CardioNet stock lost 46 cents, or 8.3 percent, to $5.09 from an earlier close at $5.55. Shares have traded between $5.07 and $29.50 over the last year.
Select the service that is right for you!COMPARE ALL SERVICES
Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
24/7 market commentary from Jim Cramer and 20+ veteran Wall Street gurus. Get access to the latest trading ideas on stocks, options, and ETFs as well as a real-time forum to see the pros exchanging their investment ideas.
- Jim Cramer + 20 Wall Street pros
- Intraday commentary & news
- Real-time trading forum
- Actionable trade ideas
All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.
- Real Money + Doug Kass + 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV