Spectranetics takes loss on legal and other costs

Spectranetics takes charges related to class action lawsuit, investigation, and other items

• On 4:58 pm EDT, Wednesday October 28, 2009

COLORADO SPRINGS, Colo. (AP) -- Medical device maker Spectranetics Inc. said Wednesday it took a loss in the third quarter due to costs related to litigation and a federal investigation.

Spectranetics said it lost $2.5 million, or 8 cents per share. It posted a profit of $183,000 a year ago, or a penny per share. The result included $1.1 million in litigation costs, $1.1 million in expenses connected to the discontinuation of the Safe-Cross product line, $602,000 in costs related to a federal investigation, and $366,000 in employee termination and lease abandonment costs.

According to Thomson Reuters, analysts expected a loss of 4 cents per share.

Revenue rose 7 percent, to $28.8 million from $26.8 million. Analysts were looking for $28.4 million. Spectranetics said vascular intervention revenue rose 7 percent to $15.4 million, and lead management revenue grew 29 percent to $9.8 million. That canceled out a decrease in laser revenue, which fell to $1.4 million from $2.4 million, and $2.2 million in service and other revenue, compared with $2.3 million a year ago.

Class action lawsuits allege Spectranetics broke federal securities law by making false and misleading statements and omissions.

In Wednesday trading, Spectranetics stock lost 34 cents, or 5.4 percent, to $5.95.

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