said Monday that third-quarter revenue will be below expectations due to a sales force transition.
As a result, the company lowered its revenue guidance for the full year.
SonoSite, a maker of handheld ultrasound systems, estimated third-quarter net earnings of 1 cent to 2 cents a share, with revenue of $40 million.
Analysts polled by Thomson First Call project earnings of 16 cents a share, though it's not clear if that estimate is comparable to the company's forecast. Wall Street targets revenue of $42.6 million, according to First Call.
SonoSite's guidance in July called for third-quarter revenue of $41 million to $44 million. The company said Monday that the "breadth" of its performance wasn't what it expected.
"In the U.S., revenue was lower than expected due to the ongoing sales force transition, specifically the integration of 18 new sales reps to address the physician office market and the redeployment of our core sales team into the hospital market," said President and CEO Kevin Goodwin in a statement. "In the short-term this transition is taking longer than expected but in the long-term it will allow us to more effectively address these large potential markets with additional sales capacity."
SonoSite now expects 15% revenue growth for the year. Based on 2005 revenue of $147.5 million, the company's forecast implies a 2006 top line of $169.6 million.
In July, the company forecast full-year revenue of $180 million to $185 million. Analysts, on average, predict revenue of $179.4 million.