Biosensors International's revenue dipped 4% to US$81.3m

Check out what to blame.

According to OCBC Investment Research, Biosensors International Group (BIG) reported a disappointing set of 3QFY13 results which were below expectations. Revenue fell 4.0% YoY to US$81.3m, its first YoY topline decline since 1QFY10, given weak licensing and royalties revenue (-37.8% YoY) from Terumo Corp. This was 11.2% below OCBC's forecast. 

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Headline PATMI showed a 91.4% YoY plunge to US$24.9m, but investors should note that there was a one-off non-operating and noncash fair value accounting gain of US$273.2m in 3QFY12 as a result of BIG’s acquisition of JWMS.

Excluding this and other exceptional items, we estimate that core PATMI declined 9.2% YoY to US$24.3m, falling short of our forecast by 20.3%. For 9MFY13, revenue and core PATMI grew 21.3% and 13.0% to US$247.4m and US$81.9m, respectively. 

Lowers revenue guidance, but still some positives BIG lowered its revenue growth guidance for FY13 from 20-30% to 15-20%. This was mainly due to weaker-than-expected licensing and royalties revenue from Japan. 

However, Terumo mentioned recently that its Nobori® stent sales are gradually recovering after bottoming out. BIG maintained its initial expectations on robust product revenue growth. It continued to deliver double-digit YoY drug-eluting stent (DES) sales growth in EMEA and APAC.