Boston Scientific posts Q3 downturn
Interventional device developer Boston Scientific reported a slight uptick in revenues for its fiscal 2007 third quarter; however, it also posted steep losses for the period.

For the quarter (end-Sept. 30), the Natick, Mass.-based firm booked net sales of $2.048 billion, an increase compared with the $2.026 billion shown in the same quarter last year. Stent sales for the company, both drug-eluting and conventional, showed a decline for the quarter in both U.S. and international markets compared with sales from the same period last year.

The firm reported earlier this week that it will lay off approximately 3,000 personnel as a result of its sales slump.

On the basis of generally accepted accounting principles (GAAP), Boston Scientific declared an unaudited net loss for the quarter of $272 million, a sharp downturn compared with GAAP net income of $76 million for the third quarter of fiscal 2006.

The firm attributed results for the third quarter to acquisition- and divestiture-related charges (after-tax) of $435 million. This included a previously disclosed and expected loss of approximately $352 million, primarily associated with the impairment of goodwill in connection with the anticipated sale of its auditory and drug pump businesses.

The loss also included $75 million of in-process research and development related to its acquisition of Remon Medical Technologies, Boston Scientific said.

The developer said that it estimates net sales for the fourth quarter of 2007 will be between $2.05 billion and $2.15 billion. Boston Scientific also said that it estimates a GAAP basis net loss for the forthcoming quarter.