Inverness loss narrows in quarter

Martha Stewart Living Omnimedia Inc., owner of the namesake magazine and TV show, said 2d-quarter revenue beat estimates on rising advertising and sales of crafts at Wal-Mart Stores. (Anders Krusberg, The Martha Stewart Show via Associated Press/File 2008)

Medical diagnostic products maker Inverness Medical Innovations Inc. said its second-quarter loss narrowed as sales of its medical tests and systems rose.

The Waltham company lost $33.5 million, or 43 cents per share in the three months ended June 30, compared with a loss of $54.7 million, or $1.17 per share, during the corresponding period a year prior. Revenue more than doubled to $401.1 million from $155 million last year.

Excluding charges for restructuring, amortization, and other items, the company said it earned 37 cents per share.

Analysts polled by Thomson Financial expected profit of 42 cents per share on revenue of $398 million. Analysts' estimates typically exclude one-time charges and gains.

The sales increase was primarily due to higher revenue from the professional diagnostics segment, where sales surged to $250.4 million from $93.1 million. Products in the segment include tests for influenza, strep throat, malaria and other infectious diseases. It also sells diagnostic systems. (AP)

Sepracor Inc., the maker of the Lunesta sleeping pill, fell the most in a year after it trimmed its 2008 forecast and missed second-quarter earnings estimates on sagging sales of its top drugs.

A one-time tax benefit of $452 million allowed the Marlborough company to report an increase in net income to $395 million, or $3.41 a share.

Without the adjustment, Sepracor reported a loss of $58 million, mainly because of $50.8 million in acquisition costs.

Adjusted earnings of 6 cents a share fell short of the 22-cent average estimate of 16 analysts surveyed by Bloomberg. To offset sagging sales of old products, investors were anticipating a reduction in marketing expenses.

Second-quarter expenses increased 24 percent to $318.5 million after the company hired 400 new sales representatives to launch Alvesco, another inhaled asthma medication.

Sepracor, which acquired Alvesco from Nycomed ASA of Norway last year, said it will begin promoting the new drug later this year.

The company lowered its 2008 revenue forecast to a range of $1.28 million to $1.38 million, from $1.35 million to $1.45 given in February.

Second-quarter revenue rose 6.3 percent to $294.1 million helped by Lunesta sales, which increased 3.6 percent to $148.1 million from a year ago, the company said. (Bloomberg)

Viacom Inc., the owner of Nickelodeon and Paramount studios, said second-quarter profit fell 6.2 percent after a gain from the sale of MTV in Russia a year ago. Revenue rose on higher ticket sales and pay-television fees.

Net income dropped to $407 million, or 65 cents a share, from $434 million, or 63 cents, a year earlier, New York-based Viacom said. Sales rose 21 percent to $3.86 billion, beating the $3.55 billion average of 14 analysts' estimates compiled by Bloomberg.

Higher fees from cable operators and ticket sales from "Iron Man" countered a slowdown in advertising sales at the cable networks.

Viacom is controlled by billionaire Sumner Redstone.

Excluding some costs, profit of 64 cents beat the 59-cent average estimate of 19 analysts. Excluding one-time items a year earlier, profit totaled $369 million, or 54 cents. Share repurchases cut the total outstanding to 630.1 million. (Bloomberg)

Electronic Arts Inc., the world's second-largest video game maker, reported a narrower first-quarter loss on sales of games such as Rock Band. The shares, however, fell in after-hours trading after the company cut its annual profit forecast.

The loss of $95 million, or 30 cents a share, compared with a loss of $132 million, or 42 cents, a year earlier, the company said. Excluding some items, the loss was 42 cents, compared with the average 34-cent estimate of 16 analysts surveyed by Bloomberg. Sales more than doubled.

The firm lowered its profit forecast because of tax changes, chief financial officer Eric Brown said in an interview. Electronic Arts, benefiting from the popularity of titles such as Rock Band, affirmed an earlier sales forecast. The game lets users play along to songs using toy guitars and drums.

The company trimmed its profit forecast for the fiscal year ending next March. Profit will be 21 cents to 48 cents a share, down from a prediction of as much as 52 cents in May.

Electronic Arts reiterated its revenue forecast of $4.9 billion to $5.15 billion. Analysts had projected sales of $5.15 billion. (Bloomberg)

Colgate-Palmolive Co., the world's biggest toothpaste maker, rose the most in more than three years in New York trading after second-quarter profit beat analysts' estimates on price increases and higher international sales.

Per-share earnings may climb at least 10 percent this year and next, the maker of Speed Stick deodorant and Irish Spring soap said. Net income jumped 19 percent to $493.8 million, or 92 cents a share, and sales advanced 16 percent to $3.96 billion, beating the $3.84 billion average analyst estimate.

Price increases of about 4.5 percent didn't deter shoppers from buying more Colgate products, even as US consumer confidence neared a 16-year low and people cut spending because of food and fuel bills. The company spent 18 percent more on advertising, helping spur purchases of higher-priced items. (Bloomberg)