Somanetics 3Q profit sinks on costs

Somanetics says 3Q profit sank 29 percent on sales, administrative costs; revenue up 1 percent

• On 9:29 am EDT, Thursday September 17, 2009

TROY, Mich. (AP) -- Medical device maker Somanetics Corp. said Thursday its fiscal third-quarter profit fell 29 percent, as expenses climbed much faster than sales.

Somanetics earned $2.2 million, or 17 cents per share, in the quarter ended Aug. 31. That compares with a profit of $3 million, or 23 cents per share, in the same period a year earlier. Revenue edged up 1 percent to $12.5 million from $12.4 million.

According to Thomson Reuters, analysts expected profit of 14 cents per share and $13.1 million in revenue.

Somanetics launched the Vital Sync patient data management system in the third quarter, and installed it at three beta test sites. It said Vital Sync combines data from bedside hospital monitors into a single display, which makes it easier for caregivers to adjust treatments or see when a patient's condition is getting worse.

During the quarter, Somanetics' selling, general and administrative costs rose to $7.3 million from $6.2 million, and research, development and engineering expenses increased to $476,000 from $332,000.

For the fiscal year ending in November, the company maintained its guidance for pretax profit of $11.2 million to $11.6 million, with $50 million to $52 million in revenue. Analysts expect $50.6 million in revenue.

Buzz up!