Given Imaging jumps on revenue, profit growth

Given Imaging Ltd. (Nasdaq: GIVN; TASE: GIVN) reported revenue and profit growth for both the fourth quarter and full year of 2011, and predicts further growth in 2012.

Given Imaging's share prices rose 11.7% in morning trading on the TASE today to NIS 73.66, after rising 12.7% in after-hours trading on Nasdaq yesterday to $20.05, giving a market cap of $600 million.

Full year revenue rose 12.8% to $178 million from $157.8 million in 2010. The 2011 figure includes $28.4 million in sales by Sierra Scientific Instruments, which Given Imaging acquired in April 2010. GAAP-based net profit rose 41% to $12 million ($0.39 per share) from $8.5 million in 2010, and non-GAAP net profit rose 2% to $20.1 million ($0.65 per share) from $19.6 million. The company beat the analysts' consensus of $0.37 earnings per share on $175.5 million revenue.

In its guidance for 2012, Given Imaging forecasts non-GAAP earnings per share of $0.70-0.80 on $190-200 million revenue.

Fourth quarter revenue rose 8% to $48.5 million from $44.9 million for the corresponding quarter. GAAP-based net profit rose 76% to $5.6 million ($0.18 per share) for the fourth quarter from $3.2 million for the corresponding quarter, and non-GAAP net profit rose 33% to $7.7 million ($0.25 per share) from $5.8 million. The company handily beat the analysts' consensus of $0.19 earnings per share on $46.8 million revenue.

Cash flow from operations totaled $10.1 million in the fourth quarter, and the company had $105 million in cash and cash equivalents at the end of the year.

Given Imaging president and CEO Homi Shamir noted the company's two pivotal clinical trials in the US and Japan of its PillCam Colon 2 diagnostic endoscopic camera for the bowel, and 40 other clinical trials worldwide. "2012 will be an exciting year for Given Imaging as we focus on expanding the use of PillCam SB (small bowel) in detecting and monitoring Crohn's disease and further penetrating the obscure gastroenterological bleeding indication worldwide," he said, adding, "These businesses represent a $5 billion global market opportunity, providing a solid foundation for advancing growth in future years."

Given Imaging reported sales growth worldwide in 2011: Asia-Pacific sales rose 40% to $24.1 million from $17.1 million; Europe, Middle East and Africa sales rose 12.2% to $45.1 million from $40.2 million; and sales in the Americas rose 8% to $108.8 million from $100.5 million.

Published by Globes [online], Israel business news - www.globes-online.com - on February 15, 2012