2/18/2009 8:06:38 AM(RTTNews)  Urological medical devices supplier American Medical Systems Holdings Inc. (AMMD) said its better-than-expected fourth-quarter profit was led by the strength in its male and female health segments.
* Strong expense control enabled the company to generate $37.1 million in cash from operations and reduce its debt by $40.7 million in the fourth quarter.
* The company forecast FY09 earnings above analyst expectations.
* Four of the company’s product lines ended the year with annual sales around $100 million each and a fifth crossed the $15 million mark.
* Early this year, the company received approval for a second product to treat prolapse and plans a limited launch” of the system in the first half of 2009, followed by a full launch in the third quarter.
The company makes and sells surgical products to urologists, gynecologists, and urogynecologists for the treatment of pelvic disorders in men and women. It operates in three segments
1. The Men’s Health segment that includes the male urinary and fecal continence products to treat the loss of bladder and bowel control as well as erectile restoration product lines.
2. The Women’s Health unit includes products for female continence, pelvic organ prolapse or a condition in which one or more pelvic organs protrude or herniate into the vaginal wall, and Her Option products that are used to eliminate excessive menstrual bleeding.
3. The BHP therapy segment includes BPH the GreenLight Laser Therapy and TherMatrx product lines to treat benign prostatic hyperplasia or enlarged prostrate.
American Medical Systems turned around to a profit of $14.61 million, or $0.20 per share in Q4, compared to year-ago loss of $5.04 million, or $0.07 per share. Excluding items, the company posted net income of $19.1 million, or $0.26 per share, ahead of the consensus estimate of 23 cents/share. Revenue increased 3% to $134.01 million, from $130.04 million last year, driven by solid performance in both male and female continence and prolapse product lines, but offset by declines in laser therapy, TherMatrix and her option product lines.
– Strong expense control enabled the company to generate $37.1 million in cash from operations and reduce its debt by $40.7 million in the fourth quarter.
– Four of the company’s product lines ended the year with annual sales around $100 million each and a fifth crossed the $15 million mark.