July 28, 2008 / 10:32 PM / 11 years ago

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) 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) ((anuradha.ramanathan@thomsonreuters.com; within U.S. +1 646 223 8780; outside U.S. +91 80 4135 5800: Reuters Messaging: anuradha.ramanathan.reuters.com@reuters.net))

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