Guidant ( GDT) said Thursday that it expects to meet or exceed the upper end of its outlook for second-quarter sales, but that costs from discontinuing a drug may lead to a net loss for the quarter.

The company said its sales should come in at $860 million to $900 million or higher. But the cost of withdrawing its Ancure abdominal aortic-aneurysm product, combined with legal settlements, could result in a loss for the quarter of up to 45 cents a share. Excluding those costs, Guidant's earnings should meet or exceed its previous forecast of a profit of 50 cents to 55 cents a share.

Guidant's EndoVascular Technologies unit agreed to plead guilty to nine felony counts of shipping misbranded products and another felony count regarding a former employee who made false statements to the government, after the Justice Department said on June 12 that Guidant covered up thousands of incidents in which the Ancure malfunctioned. Among those cases, 12 patients died.

As a result of the settlement, Guidant agreed to pay $92.4 million to the federal government.

Guidant said it planned to discontinue its Ancure product and shut down the unit responsible for making the device last Monday. More than 18,000 people worldwide have received the Ancure system, according to the company.

Also, Guidant said Thursday it made a $10 million milestone payment to Biosensors International based on the six-month clinical data of the first everolimus-eluting stent trial, Future I. The payment will be accounted for as in-process research and development for the second quarter.

Shares of Guidant were up 1.7%, or 70 cents, Thursday afternoon at $42.65.