Boston Scientific Corporation (Boston Scientific) has reported net sales of $8.05 billion for the full year of 2008, compared with the net sales of $8.36 billion in the previous year-end. It has also posted a net loss of $2.07 billion or $1.38 per diluted share, for the full year of 2008, compared with the net loss of $495 million or $0.33 per diluted share, in the previous year-end.
Fourth quarter highlights:
Sales of $2.002 billion and adjusted EPS of $0.21 (GAAP EPS loss per share of $1.62, including a $2.7 billion goodwill impairment charge)
Achieved third consecutive quarter of double-digit sales growth in our US cardiac rhythm management (CRM) business
Increased US drug-eluting stent (DES) leadership with Q4 market share of 47%; exited the quarter with 49% (25% PROMUS and 24% TAXUS(R) stent systems)
Grew Neuromodulation sales 10% over prior year
“During the quarter, we continued to gain share in our cardiac rhythm management and drug-eluting stent businesses, driven by the approval and successful launch of important new products,” said Jim Tobin, president and chief executive officer of Boston Scientific. “Throughout the year, we made progress in critical areas across the Company and positioned ourselves well for the future. We’ve transformed quality, revitalized our pipeline, streamlined the organization, strengthened our financial fundamentals and diversified our product portfolio. We will build on this solid foundation in 2009 and beyond.”
Fourth Quarter 2008
Net sales for the fourth quarter of 2008 were $2.002 billion, which included sales from divested businesses of $7 million, as compared to net sales of $2.152 billion for the fourth quarter of 2007, which included sales from divested businesses of $145 million. Excluding the impact of foreign currency and sales from divested businesses, net sales increased two% over the prior period.
Despite the company’s strong financial performance, changes in CRM market demand since our acquisition of Guidant – coupled with the recent disruptions in the credit and equity markets – have caused us to write down $2.7 billion of goodwill associated with the acquisition. This is a non-cash charge that has no impact on our debt covenants. The amount of the charge is subject to finalization during the first quarter of 2009.
“This write-down in no way diminishes our confidence in our CRM business,” said Tobin. “CRM is growing, it is taking market share, and it will be a key driver of the Company’s sales and earnings growth going forward.”
Reported net loss for the fourth quarter of 2008 was $2.430 billion, or $1.62 per share. Reported results included intangible asset impairments, acquisition-, divestiture-, litigation- and restructuring-related net charges, and amortization expense (after-tax) of $2.750 billion, or $1.83 per share
Adjusted net income for the fourth quarter of 2008 excluding these charges was $320 million, or $0.21 per share.
Reported net loss for the fourth quarter of 2007 was $458 million, or $0.31 per share. Reported results included intangible asset impairments, acquisition-, divestiture-, litigation- and restructuring-related charges and amortization expense (after-tax) of $813 million, or $0.55 per share. Adjusted net income for the fourth quarter of 2007 excluding these charges was $355 million, or $0.24 per share.
Guidance for First Quarter 2009
The company projects net sales for the first quarter of 2009 of between $1.950 billion and $2.070 billion. Adjusted earnings, excluding acquisition-, divestiture-, litigation- and restructuring-related charges and amortization expense, are anticipated to range between $0.15 and $0.20 per share. The company estimates net income on a GAAP basis of between $0.05 and $0.11 per share.