ICU Medical’s Q3 profits plunge, founder & CEO Lopez steps aside

ICU Medical (NSDQ:ICUI) saw its 3rd-quarter profits plunge some 9.5% and announced that founder and CEO Dr. George Lopez is leaving the corner office for health reasons.

San Clemente, Calif.-based ICU Medical posted profits of $11.0 million, or 72¢ per share, on sales of $82.8 million for the 3 months ended Sept. 30. That’s a 9.5% bottom-line slide on 1.9% sales growth compared with Q3 2012.

But analysts on Wall Street were expecting earnings per share of just 67¢, prompting investors to send ICUI shares up 2.6% to $65.45 apiece as of about 9:45 a.m. today.

"Our 3rd-quarter revenue was driven by strong performance of oncology products and robust improvements in critical care on a sequential basis, which were offset by decreases in infusion therapy and other product categories. International sales were up 19.0%, while domestic sales decreased 3.5% year over year," CFO Scott Lamb said in prepared remarks.

ICU Medical lowered its outlook for the rest of the year due to "current business trends in certain market segments," saying it now expects EPS of $2.50-$2.55, down from $2.50-$2.60, on revenues of $319 million to $321 million, compared to prior guidance of $320 million to $325 million.

In a separate release, ICU said Lopez is leaving the CEO role but will stay on as chairman and take up a new position in its R&D department. Vice president of operations Steven Riggs was named interim CEO as the company begins a search for Lopez’s replacement.

"I am proud of the company we have been able to build at ICU Medical. Our products have helped save the lives of and aided countless patients and medical professionals. However, at this point it is time for me to turn over the day-to-day responsibilities of running a publicly traded medical device company to Steven, who is wholly qualified for this new position. I look forward to maintaining my role as chairman of the board of directors and to working in the product development arena, which has always been one of my passions. I look forward to this new role and to working with the company to continue to develop new and innovative products in the fields of infusion therapy, critical care and oncology," Lopez said in prepared remarks.