This excerpt taken from the SONO 8-K filed Oct 24, 2008.
Company Ends Negotiations with Acquisition Candidate
BOTHELL, WA, October 23, 2008 -- SonoSite, Inc. (Nasdaq:SONO), the world leader and specialist in hand-carried ultrasound for the point-of-care, today reported financial results for the third quarter and nine months ended September 30, 2008.
Worldwide revenue in the third quarter of 2008 grew 23% to $61.6 million compared with $50.0 million in the third quarter of 2007. For the nine months of 2008, worldwide revenue grew 24% to $173.4 million compared with $140.2 million for the nine months of 2007. Changes in foreign currency rates increased worldwide revenue by approximately 0.6% for the third quarter and 2.7% for the nine months of 2008.
For the third quarter of 2008, net income grew to $4.7 million or $0.27 per diluted share, compared with net income of $1.5 million or $0.09 per diluted share in the third quarter of 2007. For the nine months of 2008, net income grew to $8.5 million or $0.49 per diluted share, compared with net income of $2.6 million or $0.15 per diluted share for the nine months of 2007. Net income in both the third quarter and nine month periods of 2008 included a $1.5 million after-tax benefit for the settlement of the Zonare patent lawsuit.
“We saw excellent revenue growth alongside strengthening profitability in the third quarter,” said Kevin M. Goodwin, SonoSite President and CEO. “Both our US and International teams executed well. Our International team turned in its eighth consecutive quarter of 20% plus revenue growth while the US grew 18%. Demand for our new products, the M-Turbo (TM) and S Series (TM), continued to accelerate and accounted for approximately 60% of the quarter’s revenue.”
“On the M&A front, this month we ended negotiations with an acquisition candidate,” Mr. Goodwin said. “These discussions had been ongoing for awhile but we could not reach an agreement. We will therefore take a $3.0 million one-time, pre-tax charge in the fourth quarter for associated expenses as well as for severance.”
“SonoSite will redouble its focus on achieving long-term organic growth and improving profitability,” Mr. Goodwin continued. “We have a strong market share position, leading proprietary technology and markets that are large and marginally penetrated. Even with the expected economic slowdown, we plan to continue our growth plans and investment toward innovations that improve clinical productivity and patient safety worldwide.”