Osteotech (OSTE: NASDAQ) Takes Charge and Shares Drop 33% Last Week
BY JOHN CHOPACK, JANUARY 10, 2005
OSTE announced on Thursday that it was taking a $5.8 million pre-tax charge to write down assets during the 4Q:04. The Company now expects a loss of $0.28 to $0.31 for the fiscal year 2004 compared to the previous forecast of $0.02 to $0.05 per share. Osteotech also cut its 2004 revenue forecast to range between $86.5 million and $87.5 million, from its original forecast of $90 million to $94 million. This sent shares downward 12% during Thursday's trading session. The stock continued to slide on Friday and closed at $4.15, down 33% from its close the previous Friday ($5.50).
Osteotech Summary Financials 2001-2004E
* Analyst estimates
Osteotech's financial performance steadily improved between 2001 and 2003. Revenues increased by a compounded annual growth rate of 10.2% while earnings increased to almost $11 million from a loss of $4.4 million during the period. However/2004 was a tough year for OSTE with analysts now anticipating revenues of $87 million, a decrease of approximately 9% from 2003. Analyst's forecasted loss of $5.2 million, or $0.30 per diluted share, is the largest loss in the past four years.
Investors have taken notice of OSTE's performance. Between 2001 and 2003 the company's shares were up 85%. However, since 2003 OSTE's shares have fallen by approximately 112%.
