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Medical equipment industry

Boston Scientific Reports Strong Financial Growth in Second Quarter

Strategic Insights

— 1 min read

Boston Scientific Corporation has announced its financial results for the second quarter of 2004, showcasing impressive growth across all its businesses and regions. Net sales increased by 71% to $1.460 billion, with a conversion rate to drug-eluting stents in the United States reaching over 80% by the end of the quarter. The company's net income, excluding special charges, rose by 200% to $377 million.

Key Takeaways:

  • Net sales increased by 71% to $1.460 billion in the second quarter of 2004, compared to $854 million in the same period of 2003.
  • Excluding the favorable impact of $31 million of foreign currency fluctuations, net sales were $1.429 billion, an increase of 67% year-over-year.
  • Net income, excluding net special charges, increased by 200% to $377 million, or $0.44 per share (diluted), compared to $126 million, or $0.15 per share, in the second quarter of 2003.
  • The recall of certain units of the Company's TAXUS Express2 paclitaxel-eluting coronary stent systems and Express2 coronary stent systems resulted in a $57 million (after-tax) or approximately $0.06 per share impact on the company's results.
  • Boston Scientific acquired Advanced Bionics on June 1, 2004, contributing to a $0.01 dilution to earnings.
  • The company reported net special charges of $64 million (after-tax) in the second quarter of 2004.
  • Boston Scientific has established new records in both sales and earnings.

Statistics:

  • 71% increase in net sales to $1.460 billion in the second quarter of 2004.
  • 67% increase in net sales to $1.429 billion, excluding the favorable impact of $31 million of foreign currency fluctuations.
  • 200% increase in net income to $377 million, excluding net special charges.
  • 80% conversion rate to drug-eluting stents in the United States by the end of the second quarter of 2004.
  • Net special charges of $64 million (after-tax) in the second quarter of 2004.

Sources:

  • Boston Scientific Corporation. (2004). Press Release: Boston Scientific Reports First-Half 2004 Financial Results, Awarded $500 Million in New U.S. Patent Infringement Claim.
  • Boston Scientific Corporation. (2004). Annual Report (Form 10-K).
  • Boston Scientific Corporation. (2004). Second Quarter 2004 Earnings Release.

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