Given Imaging nine-month 2006 sales rose to $67.6 million

While sales grew in third quarter, net profit was impaired by stock options expenses

Given Imaging (TASE, Nasdaq: GIVN) today reported higher revenues but smaller profits for the third quarter of 2006.

The company, which makes pioneering noninvasive endoscopy technology, also took the opportunity to raise its earnings forecast for the year 2006.

Worldwide sales increased 21% to $24 million in the third quarter of 2006, against $19.8 million in the same quarter of 2005.

The company grossed 74.8% of turnover, down from 76.7% in the third quarter of 2005.

Net profit plunged by two-thirds to $741,000 or 2 cents per share, compared to net profit of $1.9 million, or 7 cents per share in the third quarter of 2005.

The company notes that its bottom line was dragged down by $1.1 million in compensation. On a non-GAAP basis, Given Imaging made net income of $1.9 million, or $0.06 per share on a fully diluted basis in the third quarter of 2006.

Cash, cash equivalents and marketable securities at September 30, 2006 totaled $90.3 million.

"I am pleased with our third quarter results and, in particular, with record PillCam SB reorders which increased 30% over last year and were up 11% in the U.S. compared to the second quarter of this year," commented CEO Homi Shamir.

"We believe this reflects substantive progress in focusing both our U.S. and international sales teams on PillCam capsule sales. We are also encouraged by the growing reimbursement coverage for PillCam SB (small bowel) diagnostic procedures in several key European countries as well as the recent PillCam ESO (esophagus) reimbursement decision by Florida and Connecticut Medicare in the U.S."

He added that that the company's PillCam for the colon recently received the CE Mark.

Nine-month sales were $67.6 million, up from $62.4 million in the same period in 2005.

Net profit for the first nine months of 2006 was $3 million or $0.10 per share, compared to net income of $2.8 million.

For the year 2006, Given Imaging repeated its guidance of revenues of between $92 million to $97 million.

It raised its earnings per share forecast from a range of $0.04 to $0.14 to $0.07 to $0.14 for the full year 2006.