Given Imaging Ltd. (Nasdaq: GIVN; TASE: GIVN) reported double-digit revenue growth to reach an all-time high for the third quarter, beating the analysts' revenue and earnings per share consensus, but will only make the lower end of its full-year guidance.
Revenue rose 10% to $54 million for the third quarter from $45.4 million for the corresponding quarter of 2012. GAAP-based net profit rose 8% to $6.5 million ($0.20 per share) for the third quarter from $6 million for the corresponding quarter.
GAAP-based net profit rose 8% to $6.5 million ($0.19 per share) for the third quarter from $6 million for the corresponding quarter, and non-GAAP net profit rose 4% to $8.2 million ($0.25 per share) from $7.9 million.
Given Imaging beat the analysts' consensus of $0.23 earnings per share on $53.1 million revenue.
Cash flow from operations was $11.7 million for the third quarter, and the company had $142.4 million in cash and cash equivalents at the end of September.
Given Imaging has decided to take advantage of Israeli government's program for releasing trapped profits at lower tax rates. Given Imaging said that it would pay a 10% tax rate on $54 million of profits for which taxes had not been previously provided (instead of 25%), and will use the net proceeds in a manner that is in the best interests of the company and its shareholders.
"We are very pleased that we achieved quarterly revenue of $50 million for the first time ever, in addition to solid earnings and cash flow this quarter," said Given Imaging president and CEO Homi Shamir. "2013 has proven to be a pivotal year for Given Imaging both financially as well as in terms of our progress in achieving several critical milestones. PillCam SB3 was cleared in the US, as well as Japan where we also obtained approval for PillCam Colon. The momentum should continue with our plans to launch PillCam Colon in Japan in the first half of 2014 upon obtaining reimbursement, and obtain FDA clearance for PillCam Colon, which we expect this quarter. These achievements should have a positive impact on 2014 sales."
Published by Globes [online], Israel business news - www.globes-online.com - on November 6, 2013
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