SonoSite posts record Q1 results

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SonoSite, a hand-carried ultrasound provider for the point-of-care, has reported record financial results for the first quarter, which ended March 31.

For the first quarter of 2008, SonoSite reported net income of $1.2 million, compared with a net loss of $563,000 for the first quarter in 2007. The net income in the quarter included a one-time, pre-tax charge of $675,000 for integration of the former MarketBridge physician office channel and the elimination of overhead within the company’s marketing, general and administrative structure, the company reported.

The worldwide revenue in the first quarter of 2008 grew 23 percent to $52.5 million compared with the first quarter of 2007, SonoSite said. Changes in foreign currency rates increased worldwide revenue by approximately 4 percent. Compared to the first quarter of 2007, international revenue grew 32 percent and U.S. revenue grew 12 percent. In the United States, hospital revenue grew 16 percent and office revenue grew 33 percent—the overall U.S. growth rate was offset by an expected decline in U.S. enterprise revenue of 17 percent, according to the Bothell, Wash.-based company.

As of March 31, the company said its cash, cash equivalents and investments were $315.9 million.

Due to lower market interest rates, the company projects interest income to be offset by interest expense in 2008. The company expects to have a tax rate of approximately 39 percent for the year, virtually all of which is a non-cash item; and income taxes are largely a non-cash expense due to unused net operating loss carry forwards.

The company reiterated its target to achieve a 15 percent operating margin in 2009.