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Boston Scientific earnings socked by litigation, acquisition charges

Boston Scientific Corp. reported second-quarter net income of only $4 million because of several charges related to acquisitions and divestitures, along with litigation and restructuring charges but pointed to a 4% jump in revenue as a positive development for the medical-device maker. Without the various charges, its net income for the quarter would have stood at $285 million compared with $130 million in the same quarter last year.

Analysts had been looking for an uptick in earnings because of company cost-cutting efforts.

Worldwide sales hit nearly $1.9 billion in the quarter, falling within the range the company had forecast and representing 4% revenue growth from 2013, the Natick, Mass.-based company reported."We had a strong second quarter, delivering balanced growth across our divisions," stated Mike Mahoney, president and CEO. "In particular, we are pleased with the improvement in both our Interventional Cardiology and Cardiac Rhythm Management divisions. We remain confident in both our strategy and in our outlook for the year."

The company's interventional cardiology unit saw worldwide sales rise to $528 million from $520 million in the same quarter last year, a 2% increase. Worldwide sales in the cardiac rhythm management division rose to $497 million from $475 million in the same period last year, a 5% jump.

In the U.S., sales of defibrillators and drug-eluting stents increased in the second quarter, by about 4% to $223 million and 8% to $127 million, respectively. Domestic sales of pacemakers fell 3% to $67 million.

Follow Jaimy Lee on Twitter: @MHjlee

Follow John N. Frank on Twitter: @MHJFrank
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