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Spectranetics (SPNC) Posts Q2 Results reflecting Progress for Key Growth Initiatives

|Includes: The Spectranetics Corporation (SPNC)
Spectranetics Corp., developer of single-use medical devices for the treatment of the cardiovascular system, today reported financial results for the second quarter and six months ended June 30, 2011.
 
Revenue for the second quarter of 2011 was $32.2 million, an increase of 7 percent over revenue of $30.0 million for the second quarter of 2010. Net income for the second quarter was $584,000, or $0.02 per diluted share, compared with net income of $91,000, or $0.00 per diluted share, in the second quarter of 2010.
 
The company reported a year-over-year 15 percent increase in lead management revenue to $11.5 million; laser system revenue increased 48 percent to $2.3 million; and service and other revenue increased 9 percent to $2.5 million.
 
While vascular intervention sales declined 1 percent to $15.8 million, segment revenue continued its turnaround from its lows in the fourth quarter of 2010, increasing sequentially by $1.2 million, or 8 percent, as compared with the first quarter of 2011. 
 
“The second quarter results reflect continued progress on our key growth initiatives. The second consecutive quarter of sequential growth in our Vascular Intervention business, and the 15 percent growth in our lead management business demonstrate the growing demand for our portfolio of products,” Jason D. Hein, senior vice president of Sales, Marketing and Business Development for Spectranetics stated in the press release.
 
Revenue for the first half of 2011 rose 6 percent to $62.6 million, compared to $59.0 million reported for the first half of 2010. Net income for the first half of 2011 was $430,000, or $0.01 per diluted share, compared with a net loss of $867,000, or $0.03 per share, in the first half of 2010.
 
Year-to-date 2011 lead management revenue increased 14 percent to $22.8 million; laser system revenue increased 47 percent to $4.3 million; and service and other revenue increased 10 percent to $5.1 million.
 
Vascular intervention revenue in the first half of 2011 declined 3 percent to $30.5 million, compared with the first six months of 2010, but continued its turnaround with two consecutive quarters of sequential improvement since the fourth quarter of 2010. 
 
For the remainder of the year, Spectranetics is focused on improving its revenue growth rate, with revenue expected in the range of $122.5 million-$126.5 million.
 
For more information visit spectranetics.com
 
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