Boston Scientific earnings: CRM slump continues as BSX swings to a loss in Q2, lowers guidance for 2012

July 26, 2012 by MassDevice staff

Boston Scientific takes a non-cash $3.4 billion impairment of goodwill charge to its bottom line over weakening economic conditions, sending the medical device company to a loss for the quarter; DES, CRM and ICD sales slump badly in the quarter as 2012 outlook lowered.

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Boston Scientific (NYSE:BSX) swung to a $3.4 billion loss, lowered its year-end guidance and saw its bread and butter businesses drop by double-digit percentage points during a tough 2nd quarter for the medical device company.

The Natick, Mass.-based medical device maker took a massive $3.43 billion non-cash impairment of goodwill to its bottom line, swinging the company to a $3.40 billion net loss on $1.82 billion in sales for the 3-month period ended June 30, compared to a $146 million profit on $1.98 in sales during the same period last year. Excluding those charges the company said it would have posted a $239 million profit for the quarter.

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Total sales during the quarter were off about 7.4%, compared to the same period last year, primarily due to soft sales in the company's ICD business, which was off 16% from the same period last year. BSX's CRM business was off 10% from the same period last year. And, surprisingly, Boston's drug-eluting stent business was off 20% worldwide.

"No doubt, this was a tough quarter," BSX CEO Hank Kucheman told investors during the company's conference call, blaming the soft sales on a myriad of factors including a weakened global economy.

In particular, he said that the CRM market has not hit the bottom yet, confirming what St. Jude Medical (NYSE:STJ) CEO Daniel Starks suggested last week during the company's earnings report.

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