Arterial Vascular Expects Lower Earnings

Arterial Vascular Engineering Inc. said it expects lower earnings in the quarter ending Dec. 31. The company now expects earnings per share of $0.14 to $0.16 for the quarter, down from the $0.25 the company reported for the quarter ended Sept. 30 and down from the $0.25 expected for this quarter by analysts surveyed by Zack’s Investment Research and IBES International Inc. The Santa Rosa-based firm also expects future earnings to be in line with its expectations for this quarter, Arterial Vascular said. The company said legal expenses and the termination of various distributor agreements will cost it $1 million this quarter. The addition of sales personnel in Europe without a subsequent rise in sales, also hurt the bottom line, Arterial Vascular said. The Santa Rosa, California-based company markets stents and coronary angioplasty products in 30 countries outside the U.S. In addition, the company incurred increased research and development expenses and a one-time charge of $400,000 for postponing a secondary offering, according to its statement.