ArthroCare profit jumps in the 3rd quarter
AUSTIN, Texas (AP) — Medical product maker ArthroCare said Wednesday its profit jumped in the third quarter on higher surgical tool sales and reduced expenses, including those from restating its financial earnings.
The company reported net income of $9.1 million, or 27 cents per share, up from $1.6 million, or 5 cents per share, in the prior-year period. The company's revenue increased 4.4 percent to $86.9 million.
Analysts polled by FactSet expected earnings per share of 28 cents on revenue of $84.6 million.
Sales of the company's sports medicine products increased 5.9 percent to $55.2 million. Sales of ear, nose and throat products grew 2.5 percent to $25.5 million.
Gross product margin improved to 68.3 percent from 67.9 percent.
The company's operating costs were $2.8 million lower in the quarter due to decreased exit costs, and $3.8 million lower due to decreased investigation and restatement costs. Arthrocare previously had to restate its results dating back to 2006 because of errors in its sales calculations.
Company shares rose 35 cents to close at $30.08 for the day.