SonoSite sees double-digit gains in Q2

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Hand-carried ultrasound manufacturer SonoSite of Bothell, Wash., reported double-digit increases in sales and net income for its 2007 fiscal second quarter (end-June 30).

Worldwide revenue for the firm in the second quarter of 2007 grew 20 percent to $47.4 million compared with $39.5 million in the second quarter of 2006. Changes in the foreign currency rates increased the revenue growth rate by approximately 2 percentage points for the period.

For the second quarter of 2007, SonoSite reported that net income grew 32 percent to $1.7 million compared with $39.5 million posted in the second quarter of 2006. Overall, international revenue accounted for 51 percent of total revenue in the quarter compared with 49 percent in the prior year period.

For 2007 the company continues to target revenue growth in the range of 15-18 percent. Consistent with historical seasonal patterns, management expects approximately one-third of the year’s total revenue to occur in the fourth quarter.

The company updated its previous gross margin guidance of 71 percent for the year to a range of 70-71 percent due to a potential higher mix of international revenue than previously estimated. The company expects gross margin to increase in the second half due to the historically higher mix of U.S. revenue and a decrease in royalty payments on applicable product revenues to ATL Ultrasound (now part of Philips Medical Systems), which expires at the end of the third quarter and completes the royalty obligation that was part of SonoSite’s original spin-off technology licensing agreement.