Somanetics cash and securities up to $43.4 million, revenue gains 50% to $7.9 million

New York, Sept. 18 - Somanetics Corp. said it had $21.39 million of cash and equivalents and $22.06 million of marketable securities at the end of its fiscal third quarter on Aug. 31, up from $13.15 million of cash and equivalents and no marketable securities at the end of fiscal 2005 on Nov. 30, 2005.

Net revenue for the third quarter was $7.9 million, up 50% from the $5.2 million for the same period of 2005 and a record for the company.

For the first nine months of fiscal 2006, net revenue was $21.0 million, up 46% from $14.4 million in the same period a year earlier.

Net income before taxes for the fiscal third quarter was $2.9 million, up 90% from $1.5 million in the same period of 2005. Somanetics did not pay income taxes in the third quarter but recorded taxes at an estimated rate of 34%. Net income was $1.9 million for the quarter, 13 cents per diluted share, up from $990,000 or 8 cents per share.

The Troy, Mich., maker of medical devices for surgery and patient recovery in critical care raised its earnings forecast for fiscal 2006 to 47 to 49 cents per diluted share, up from 40 to 42 cents previously.

"Our strong third quarter performance was highlighted by a significant contribution from Tyco Healthcare, our distributor in Europe, Canada, the Middle East and Africa," said Bruce J. Barrett, Somanetics' president and chief executive officer, in a news release. "We also continued to make progress on a number of clinical research, research and development, and operating initiatives, including the expansion of our direct U.S. sales team which now numbers 40 representatives."

Somanetics also announced it has signed a contract development and exclusive licensing agreement with NeuroPhysics Corp. of Shirley, Mass., for several novel near-infrared spectroscopy and imaging technologies and products under development at NeuroPhysics.

Somanetics will pay an initial license fee of $1 million, monthly license fees beginning April 1, 2008 for products continuing under development at NeuroPhysics and a royalty on any future sales.

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