Kensey Nash Corp. posted sales and earnings declines during its fiscal 2010 first quarter as revenues from royalties slumped, leading it to cut its sales and earnings forecasts for the full year.
The Exton, Pa.-based medical device maker posted sales of $19.7 million during the three months ended Sept. 30, down 2 percent compared with $20.2 million during the same period last year. Net income slumped 7 percent to $4.9 million, down from $5.3 million during the first quarter of fiscal 2009.
Kensey Nash attributed much of the decline to royalty revenues, which came in at $6.3 million for the quarter. That’s a 5.6 percent decrease compared with the $6.7 million in royalties it pulled down during the year-ago quarter; and president and CEO Joe Kaufmann said it’s difficult to pinpoint the cause of the softness, but said it was likely due to “a combination of product mix and the negative affects of foreign currency exchange.”
Kaufmann also said the company expects to take a hit from slumping rates of elective procedures and reduced hospital inventories.
The company downgraded its full-year sales forecast, saying it expects sales of $82.5 million to $86 million during fiscal 2010, down from its previous guidance of $86 million to $89 million. Diluted earnings per share are expected to be between $1.76 and $1.80, consistent with previous guidance.
Kensey Nash said it spent $804,000 buying back 32,142 shares of its own stock during the quarter.