BIOSENSORS

BIOSENSORS reported sales in 1Q11 rose by 39% to US$33m mainly due to a 53% jump in sales of drug-eluting stents, which represents increased traction of its BioMatrix system in existing markets as well as continued expansion through regulatory approvals in new geographic areas such as France, Korea. Notably, overall GPM for product revenues came to 73%, up from 69% last year although operating expenses increased by about US$3m to US$17.5m due to higher sales and marketing expenses.

However, net profit of US$3.24m for the 1Q was down 23% YoY as a result of a one-off charge of US$5.97m related to the closure of its US operations. Otherwise, profit before exceptionals totalled US$11.5m, up from US$4.8m last year. Mgtm believes that this reorganization will produce annual cost savings between US$4.0m to US$6.0m starting in FY12. The Co has maintained its FY11 revenue guidance of US$135-145mn set earlier this year despite the weak Euro. Nomura has a BUY rating and TP of $1.20.