CardioNet Q1 profits, losses increase

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CardioNet, a developer of wireless cardiac arrhythmia monitoring devices, saw an increase in both revenue and losses for its fiscal 2009 first quarter, which ended March 31.

Net loss for the first quarter of 2009 was $700,000, compared with a net loss of $300,000 for the first quarter of 2008, according to the Conshohocken, Pa.-based company.

However, CardioNet booked revenues for the first quarter of 2009 of $35.7 million compared with $25.5 million in the first quarter of 2008, an increase of $10.2 million, or 40.3 percent.

On a generally acceptable accounting principles (GAAP) basis, the firm's operating loss was $1.3 million in the first quarter of 2009 compared with a loss of $700,000 in the first quarter of 2008. The company said that excluding $3 million of expense related to management restructuring, primarily severance costs for former senior executives, and costs incurred in connection with a definitive merger agreement to acquire Biotel, adjusted operating income increased to $1.6 million in the first quarter of 2009, or 4.6 percent of revenue. This compares with adjusted operating income of $600,000, or 2.4 percent of revenue in the first quarter of 2008, which excludes $1.3 million of charges related to the resolution of a legal matter and for restructuring primarily related to the integration of PDSHeart, the company said.