UPDATE 1-Ev3 posts wider Q2 loss; says Merck deal terminated
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July 28 (Reuters) - Ev3 Inc EVVV.O, an endovascular devices maker, posted a wider quarterly loss as expenses rose, and said its collaboration and license agreement with Merck & Co Inc (MRK.N: Cotización) has been terminated.
The company said it recorded a one-time non-cash impairment charge about $10.5 million in the second quarter related to the contract termination.
For the second quarter, net loss widened to $27.4 million, or 26 cents a share, from $11.9 million, or 20 cents a share, a year ago. Revenue rose 65 percent to $107.7 million.
Analysts on average expected a loss of 16 cents a share, before items, on revenue of $102.6 million, according to Reuters Estimates.
Total operating expenses jumped to $134.6 million from $77.4 million a year earlier.
For the third quarter, the company expects an adjusted net loss of 2 cents to a profit of 1 cent per share, on revenue of $104 million to $106 million.
Analysts were expecting a loss of 9 cents a share, before items, on revenue of $106.8 million.
For 2008, the company forecast adjusted earnings in the range of breakeven to a profit of 5 cents a share, and reaffirmed its revenue outlook of $425 million to $430 million.
Analysts were expecting the company to post a loss of 39 cents a share, before items, on revenue of $424.4 million, for the year.
Shares of the company, based in Plymouth, Minnesota, closed at $9.78 Monday on Nasdaq. (Reporting by Anuradha Ramanathan in Bangalore; Editing by Deepak Kannan) ((email@example.com; within U.S. +1 646 223 8780; outside U.S. +91 80 4135 5800: Reuters Messaging: firstname.lastname@example.org))
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