Aspect Medical Systems reports third-quarter revenue up 17% at $22.9 million

By Lisa Kerner

Charlotte, N.C., Oct. 25 - Aspect Medical Systems, Inc. said its third-quarter revenue was up 17% at $22.9 million, from $19.6 million in the third quarter of 2005.

Product revenue rose by 14% to $21.1 million for the third quarter from $18.6 million for the prior-year period.

At Sept. 30, Aspect Medical had cash, cash equivalents and marketable securities of $63.4 million with no debt, compared with $61.3 million at Dec. 31, 2005, also with no debt.

For the third quarter, the company reported operating expenses of $15.8 million, an increase from $12.6 million for the third of quarter 2005, and net income of $4.1 million, up from $2.6 million for the prior-year period.

Net income per diluted share was $0.17 for the third quarter, compared with $0.11 for the third quarter of 2005.

For the fourth quarter, Aspect Medical is forecasting total revenue in a range of $23.2 million to $24.2 million, product revenue in a range of $21.7 million to $22.7 million and net income per diluted share of between $0.08 and $0.10 on a GAAP basis.

"[T]he third quarter of 2006 was marked by continued growth in operating margins, earnings per share and the installed base of BIS technology," president and chief executive officer Nassib Chamoun said in a company news release.

Chamoun also said a number of clinical guidance documents and sessions at the American Society of Anesthesiologists' annual meeting last week reflect a "continued positive shift in customer sentiment regarding the role of brain monitoring in clinical practice."

"In addition, new research presented at [the meeting] regarding the short- and long-term outcome benefits of BIS monitoring and the possible role of our technology in helping clinicians to assess patient reactions to pain during surgery generated significant interest. We believe that these factors, combined with the breadth of our product portfolio, position us well for more widespread adoption of our technology," he added.

Aspect Medical develops brain-monitoring technology and is located in Newton, Mass.

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