Shares of Home Diagnostics, Inc. (HDIX) jumped 13 cents, or nearly 2 percent, Thursday to close at $6.88 after the manufacturer of diabetes testing supplies beat fourth quarter earnings estimates by 4 cents. The Fort Lauderdale, Fla.-based company saw non-GAAP adjusted net income reach $2.2 million, or 11 cents per share, up from $752,997, or 4 cents per share, the prior-year period. GAAP net income was $100,000, adjusted for a non-recurring legal settlement expense.
Revenue was $27.8 million, up 3.3 percent from $26.9 million in the fourth quarter of last year. The company’s continued expansion into the Canadian retail and distribution markets, in addition to strong sales in the UK and Germany, bolstered international sales by 46.3 percent.
Research and development expenses were flat at $2.4 million despite a strong focus on investments in new product development and new manufacturing equipment for the TRUEtest blood glucose monitoring system, which the company expects to launch in the second half of this year.
“Our financial results for the fourth quarter, as adjusted for the legal settlement, are in-line with our guidance for revenue and earnings,” Chief Executive J. Richard Damron, Jr. said. “Our international channel continued to produce strong year-over-year growth, driven by further penetration into the Canadian marketplace and strength in Australia, Latin American and the UK. We are excited about winning the Rite Aid co-brand business which solidifies our position as the leading co-brand supplier for the major U.S. drug chains.”
Home Diagnostics, which announced its co-branding agreement with Rite Aid in January, will offer its TRUEtrack blood glucose monitoring system at over 5,000 Rite Aid stores across the United States starting this month.
The company adjusted 2008 guidance downward with an annual revenue expected in the range of $123 million to $126 million, down from a consensus of $127.5 million, but representing annual growth of between 6 percent and 9 percent. Earnings per share are expected to be in the range of 50 to 52 cents per share, with the majority of its 2008 revenue and earnings to be weighted towards the second half of the year due to this year’s new product launches.
Home Diagnostics, which was founded in 1985, sells its wide variety of blood glucose monitoring products to diabetics worldwide via food and drug retailers, mass merchandisers, distributors, and mail service providers.
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