Spectranetcs sees income fall, receives Nasdaq noncompliance notice over CEO

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Spectranetics has reported its financial results for the 2008 third quarter, which ended Sept. 30. Simultaneously, the company received a notice from the staff of the Nasdaq Stock Market that it was not in compliance with Nasdaq's independent director and audit committee requirements.

The Nasdaq notice said that due to the appointment of Emile J. Geisenheimer, formerly an independent director and audit committee member, as the company's president and CEO, the company was not in compliance with Nasdaq independent director and audit committee requirements, according to a Form 8-K filing with the Securities and Exchange Commission.

The Colorado Springs, Colo.-based company booked a net income of $183,000, compared with net income of $231,000, in the third quarter of 2007. Revenue for the third quarter of 2008 was $26.8 million, up 26 percent compared with revenue of $21.2 million for the third quarter of 2007. Disposable product revenue rose 28 percent to $22.1 million, laser revenue increased 21 percent to $2.4 million and service and other revenue increased 18 percent to $2.3 million, all compared with the third quarter of 2007.

“Our results in the third quarter also demonstrate that we are conducting business in a normal course despite the federal investigation announced in September. Despite the distraction associated with the investigation, September remained our strongest month of the quarter in terms of revenue,”

In September, the FDA and U.S. Immigration and Customs Enforcement served the company with a search warrant issued, regarding the promotion, use, testing, marketing and sales regarding certain of its products for the treatment of in-stent restenosis.

“We are cooperating fully with all aspects of the investigation, including working closely with the FDA to provide all information associated with the laser interaction with stents. Our testing in this area was comprehensive and we believe the data supports the safety of our laser technology in this application,” Geisenheimer said.