Edwards Lifesciences says Q2 net income up 260% on sales of $267.3 million

By Angela McDaniels

Seattle, July 24 - Edwards Lifesciences Corp.'s net income for the second quarter ended June 30 increased by 260% to $36.1 million, or $0.58 per diluted share, from $13.9 million, or $0.22 per diluted share, for the same period in 2005, according to a company news release.

Non-GAAP net income grew 13.9% to $36.8 million, or $0.59 per diluted share, for the second quarter from $32.3 million, or $0.51 per diluted share, for the second quarter of 2005.

"Reinforced by our first-half results, we continue to expect another year of strong performance in 2006 and remain confident in our ability to achieve our original financial goals of generating total sales between $1.02 to $1.06 billion, increasing our gross profit margin by 150 to 200 basis points, delivering non-GAAP net income growth of 12% to 15%, excluding the impact of special items and option expensing, and generating free cash flow of $140 million to $150 million," chairman and chief executive officer Michael A. Mussallem said in the release.

The company narrowed its 2006 sales estimate to between $1.04 billion and $1.06 billion, raised guidance for full-year earning per share to between $2.21 and $2.27, excluding special items and option expense, and predicted third-quarter earnings per share of $0.45 to $0.47, which includes $0.05 per share of option expense.

Second-quarter net sales increased by 3.5% to $267.3 million from $258.2 million for the same quarter last year. The company said that excluding the impact of $2.8 million in foreign exchange and $3 million of discontinued product lines, underlying sales growth was 6%.

For the six months ended June 30, Edwards Lifesciences' net income grew by 181% to $82 million, or $1.30 per diluted share. Net income for the same period of 2005 was $45.1 million, or $0.76 per diluted share.

Non-GAAP net income for the first half of 2006 increased by 14.7% to $71.6 million, or $1.14 per diluted share, compared with $62.4 million, or $0.99 per diluted share, for the same period last year.

The company said net sales for the first six months of 2006 totaled $524 million, an increase of 3.3% over the same period last year. On an underlying basis, excluding the impact of foreign exchange and discontinued product lines, net sales grew 7.5%.

Edwards Lifesciences is based in Irvine, Calif., where it produces products and services to treat cardiovascular disease.

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