Shares of ArthroCare were flat last week after the medical device company said it returned to profits for the 4th quarter and 2012, as investors waited for more clarity about ongoing U.S. Justice Dept. investigations.
Investors stayed on the sidelines last week on shares of ArthroCare (NSDQ:ARTC), despite its return to black ink for both the 4th quarter and full year, as they awaited more information on pending U.S. Justice Dept. investigations.
The Austin, Texas based medical device company last month agreed to extend the statute of limitations on a DoJ probe into its spinal business that dates back to 2008. The surgical instruments maker is also facing a federal look at possible False Care Act violations.
ArthroCare reported profits of $11.3 million, or 30¢ per share, on a sales increase of 4.9% of $96.9 million for the 3 months ended Dec. 31, 2012, compared with losses of $29.8 million, or 36¢ per share, during Q4 2011.
For the full year, ArthroCare logged profits of $47.1 million, or $1.25 per share, on sales of $368.5 million, compared with losses of $533,000, or 16¢ per share, during 2011. That amounts to top-line growth of 3.8% year-on-year.
President & CEO David Fitzgerald has said the new deal could herald a resolution of the probe. Last week, during a conference call with investors to discuss quarterly and year-end results, CFO Todd Newton said ArthroCare is hoping to put the spinal business investigation to bed by the time the extension deal lapses March 1.
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