NEW YORK (360Dx) – Siemens Healthineers said today that its fiscal year 2019 first quarter revenues were up 3 percent year over year.
For the three months ended Dec. 31, 2018, the firm reported total Q1 revenues of €3.30 billion ($3.76 billion) compared to €3.20 billion in the prior-year quarter.
The Erlangen, Germany-based company reported Diagnostics revenues of €964 million, up 4 percent from €929 million in Q1 2017.
"Siemens Healthineers' growth trend remains intact and customers’ response to our new Atellica Solution laboratory diagnostics platform continues to be positive," Bernd Montag, the firm's CEO, said in a statement. "What we are not pleased with, however, is the profit development of our Diagnostics business. We have, therefore, directly initiated measures to sharpen our focus even more on the business success of [the] Atellica Solution."
The firm's US Food and Drug Administration-cleared Atellica Solution for mid- and high-volume labs consists of flexible, scalable, and automation-ready immunoassay and clinical chemistry analyzers.
In Diagnostics, the firm experienced moderate comparable revenue growth on weak comps driven by the Americas and China, which was offset by flat growth in its Europe, Commonwealth of Independent States, Africa, and Middle East region.
The firm said that in Q1 its overall Diagnostics segment growth was in the high-single digits. It shipped more than 370 Atellica Solution analyzers in the first quarter, but negative currency effects year over year and increased Atellica Solution ramp-up costs — due to high shipments and extended installation times — reduced its adjusted profit margin.
In other business segments, the firm's Imaging revenues were €2.02 billion, up 4 percent from €1.94 billion in the prior-year quarter, and its Advanced Therapies revenues were €355 million, down 4 percent year over year from €368 million.
Siemen's Healthineers' net income for the quarter was €345 million, or €.34 per share, compared to €310 million, or €.31 per share, in Q1 2018.
Its R&D expenses were €312 million, up 2 percent year over year from €306 million, and its SG&A expenses were €536 million, nearly flat with €538 million in the prior-year quarter.
The firm confirmed its guidance for FY 2019, continuing to expect comparable revenue growth to be in the range of 4 percent to 5 percent. It anticipates earnings per share to be 20 percent to 30 percent above the level of FY 2018.