Spectranetics income drops considerably despite 7% revenue increase

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Spectranetics experienced severe net losses for its fiscal third quarter, which ended Sept. 30.

The company suffered a net loss of $2.49 million in the 2009 third quarter, compared with a recorded $183,000 in net income for the third quarter of 2008. The losses during the third quarter of 2009 include $3.1 million of special items, consisting of $602,000 of costs associated with a federal investigation; $1 million of costs associated with ongoing litigation (unrelated to the federal investigation); $1 million relating to the discontinuation of the marketing and sales of the Safe-Cross product line; and $366,000 of employee termination and lease abandonment costs.

Compared to $422,000 in the third quarter of last year, the Colorado Springs, Colo.-based Spectranetics reported that its federal investigation costs were $602,000 in this year’s comparable quarter.

According to the company, revenue for the third quarter of 2009 was $28.8 million, up 7 percent compared with revenue of $26.8 million in the previous-year comparable quarter.

Specifically, Spectranetics said that its vascular intervention revenue rose 7 percent to $15.4 million, lead management revenue increased 29 percent to $9.8 million, laser equipment revenue declined 43 percent to $1.4 million, and service and other revenue declined 6 percent to $2.2 million, all compared with the third quarter of 2008. Vascular intervention sales include three product lines–atherectomy, which decreased 3 percent, crossing solutions, which increased 23 percent, and thrombectomy, which increased 26 percent, all compared with the 2008 third quarter.