Biosensors reports operating profit of $43m for 1Q on strong sales

Biosensors has reported an operating profit of US$33.7 million ($42.5 million) for the first quarter ended 30 June 2012 (1Q FY13), representing a 44% increase compared to the same period last year (1Q FY12).

Excluding exceptional items, which comprise fair value adjustments for warrants and provisions for restructuring expenses, net profit for 1Q FY13 would have been US$28.3 million.

This compares to a net profit of US$24.1 million for 1Q FY12 after excluding the fair value adjustments for warrants.

Including exceptional and non-operating items, net profit for 1Q FY13 was US$32.6 million compared to a net profit of US$22.6 million for 1Q FY12.

Biosensors reported total revenue in 1Q FY13, , including licensing and royalties, of US$86.3 million, a 51% increase over US$57.0 million a year ago (1Q FY12).

Correspondingly, Interventional Cardiology Products sales rose to US$65.7 million, up 74% from US$37.7 million in Q1 FY12. This was largely due to the full-quarter consolidation of JW Medical System’s results and continued growth in the sales of the company’s BioMatrix family of drug-eluting stent. Sales revenue of critical care products was US$3.3 million, compared to US$3.7 million in the same period last year.

Licensing and royalties revenue grew to US$17.3 million, an increase of 10% from US$15.6 million in 1Q FY12.

Gross margin on total revenue rose to 85% for the quarter from 82% in the previous quarter and 81% in 1Q FY12. Gross margin on total product sales was 81%, compared to 76% in the previous quarter and 74% in 1Q FY12. Reduction in manufacturing cost, favorable geographical and product mix contributed to the improvement in the gross product margin.

Overall operating expense as a percentage of total revenue for the quarter was 46% compared to 40% in Q1 FY12.

In detail, the quarter’s sales and marketing (S&M) expense was US$22.3 million; general and administrative (G&A) expense was US$10.1 million; research and development (R&D) expense, which included costs for new product development and testing, clinical trials, patent registration and regulatory approval, was US$6.3 million.

As a percentage of total revenue, 1Q FY13 S&M expense was 26%, compared to 28% in 1Q FY12; G&A expense was 12% compared to 11%, while R&D expense was 7% versus 8%.