UTICA — After a relatively strong first quarter of profit and revenue gains, ConMed Corp. (NASDAQ: CNMD) has lowered its earnings and sales forecasts for the remainder of the year on worries over lagging capital-equipment sales.
The medical-device manufacturer reported that net income rose 11 percent to nearly $10 million, or 35 cents a share, in the first quarter from $8.9 million, or 31 cents, in the year-ago period. Net sales rose almost 6 percent to $194.3 million from $183.5 million.
Excluding unusual items, ConMed first-quarter net income was $12.2 million, or 43 cents a share, compared to $10.6 million, or 37 cents, a year earlier. That missed the consensus analyst forecast of 44 cents a share, according to research and data provider S&P Capital IQ.
ConMed released its earnings before the open of trading this morning. Its shares traded down as much as 5.5 percent shortly after trading started.
ConMed’s capital-equipment sales remained soft in the first quarter, dropping 4.5 percent to $40 million. ConMed President and CEO Joseph Corasanti said on an earnings conference call this morning that he expects little to no growth of capital-equipment sales this year.
As a result, the company revised its sales forecast for 2012 downward from prior guidance of $780 million to $790 million to a new range of $775 million to $785 million. ConMed also revised its earnings-per-share forecast for the full year from its previous range of $1.75 to $1.88 a share downward to a range of $1.75 to $1.85.
During the conference call with investors and the media, Corasanti said the capital-equipment market is stabilizing but has not come close to recovering to pre-recession levels. He emphasized that ConMed is not losing market share but rather the whole market is depressed.
Customer finances are dictating when hospitals purchase or replace equipment, and most hospitals are diverting an increasing share of funds toward investments in health-care information technology, Corasanti said.
Headquartered in Utica, ConMed (www.conmed.com) manufactures surgical devices and equipment for minimally invasive procedures and patient monitoring. The company employs about 3,400 people worldwide.
Contact DeLore at tgregory@tmvbj.com