Biosensors' profit takes a hit
MEDICAL device maker Biosensors International's net profit took a beating for both its fourth quarter and the full year, hit by lower revenue and thinner gross margins. Net profit for the three months ended March 31, 2014, was US$6.1 million, or 0.36 US cent per share, down from US$29.8 million, or 1.73 US cents per share, a year earlier.
Total revenue fell 8 per cent to US$81.6 million, partly due to a decline in revenues from interventional cardiology. The segment, Biosensor's largest product revenue contributor, recorded a 14 per cent decline in revenue to US$63 million.
Revenue from the group's other product segments - critical care and cardiac diagnostic - grew.
For the full year, net profit fell 65 per cent to US$40.6 million. Revenue slipped - for the first time in five years - by 4 per cent to US$323.8 million, owing to a reduction in the licensee's drug-eluting stents (DES) sales in Japan.
Gross profit margins for products fell to 74 per cent from 81 per cent previously, largely due to distribution activities for Nobori stents in Japan as well as the group's newly acquired cardiac diagnostic business, both of which had lower margins. Earnings per share were 2.38 US cents per share, down from 6.71 US cents per share the previous year.
No dividend was declared. Net asset value per share stood at 73.84 US cents as at end-March.
"In light of the changing market dynamics, Biosensors is transitioning from a successful entrepreneurial company to a more diverse and structured international organisation," said Biosensors' executive chairman Yoh-Chie Lu. "With our strong financial resources and the strategic direction that the board has recently set forth, we are confident that we can strengthen the company's fundamentals and operations to further grow our business."
The group also announced the appointment of a new CEO, Jose Calle Gordo, with effect from Nov 1, 2014. "Dr Jack Wang will continue with the company to help the transition and take on a new role of chief technology officer," said Biosensors. "Meanwhile, Mr Yoh-Chie Lu, Biosensors' executive chairman, will serve as interim CEO."
The counter ended 3.5 cents lower at 98 cents yesterday.
