On Eve Of Buyout, Somanetics Net Slips
Troy medical device maker Somanetics Corp. (Nasdaq
: SMTS) Monday reported net income of $1.5 million or 12 cents a share for the second fiscal quarter ended May 31, down from $1.8 million or 14 cents a share in the same quarter a year earlier.
Revneue was $13.9 million in the quarter, up 17 percent from $11.8 million in the same period of 2009.
For the six months, net income was $3.6 million, up 15 percent from $3.1 million in the same period of 2009. For the six months ended May 31, revenue increased 18 percent to $27 million from $23 million in the same period last year.
On June 16, Covidien plc and Somanetics announced the signing of a definitive merger agreement under which Covidien will acquire all of the outstanding shares of Somanetics Corporation for $25 per share in cash, for a total of $250 million, net of cash acquired. In light of this announcement, Somanetics has canceled its second-quarter 2010 financial results conference call, which had been scheduled to take place on June 23.
The acquisition, which will take the form of an all-cash tender offer by a wholly owned subsidiary of Covidien, followed by a second-step merger, is subject to customary closing conditions, including receipt of certain regulatory approvals, and is expected to be completed by July 31. Once the transaction has been completed, Covidien will report the Somanetics business as part of its Oximetry and Monitoring product line in the Medical Devices business segment.
Somanetics develops, manufactures and markets the INVOS Cerebral-Somatic Oximeter. The INVOS System is the only commercially available cerebral-somatic oximeter with labeling for improved outcomes after surgery in patients weighing more than 2.5 kg. The INVOS System is the clinical reference standard in cerebral/somatic oximetry, with a 12-year market track record, more than 750 clinical references and implementation at approximately 800 U.S. hospitals. Somanetics also develops, manufactures and markets the Vital Sync System, a device that integrates data from bedside devices into a single system for enhanced patient assessment and decision making, data management and data storage.
More at www.somanetics.com.
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