SonoSite Inc. reported unaudited consolidated earnings results for the second quarter and six months ended June 30, 2010. For the quarter, the company reported that revenue increased 18% to $61.5 million as compared to $52.28 million for the prior year comparable period. Revenue growth was led by SonoSite's US hospital channel, which was up 20%. Excluding charges of $2.5 million from the acquisition of VisualSonics, EBIT was $8.7 million, representing an increase of 145% compared to $3.53 million for the prior year. Including charges for the acquisition, EBIT was otherwise $6.15 million compared to $2.95 million reported a year ago. Excluding acquisition charges, EBITDAS was $11.47 million, up 90% compared to $6.05 million reported a year ago. Excluding acquisition charges, EPS was $0.29 per share. Including acquisition charges, EPS was $0.12 per diluted share against $0.02 per diluted share in the same period of 2009. The company reported income before income taxes of $3.71 million and net income of $1.87 million compared to income before income taxes of $0.68 million and net income of $0.42 million reported a year ago. Revenue increase 13% for the first half of 2010 to $117.5 million as compared to $104.09 million for the prior year comparable period. Excluding acquisition charges, EBIT was $11.33 million, an increase of 121% compared to $5.12 million for the prior year. Including acquisition charges, EBIT was otherwise $8.82 million, up 94% over $4.54 million for the first half of 2010. Excluding acquisition charges, EBITDAS was $16.8 million, up 51% compared to $11.17 million reported a year ago. Cash flow from operations was $21.3 million compared to $7.4 million from the prior year, representing an increase of $13.9 million or 1.9 times the prior year. Excluding acquisition charges, EPS was $0.36 per share. Including acquisition charges, earnings were $3.3 million or $0.20 per diluted share against $1.3 million or $0.07 per diluted share in the prior year's first half. The company reported income before income taxes of $4.12 million compared to income before income taxes of $2.07 million reported a year ago. Net cash provided by operating activities was $21.31 million compared to $7.37 million reported a year ago. The company reported purchases of property and equipment of $1.43 million compared to $1.81 million reported a year ago. The company updated guidance for 2010 for the expected impact of the VSI acquisition: Core business revenue growth of 10% to 12%. With the inclusion of $17.0 million of estimated revenue from VSI, overall revenue growth is projected at 18% to 19%. The company reaffirmed Core business EBIT margins of 11% to 13%. With $7.0 million of transaction costs, amortization and stock compensation expenses from the VSI acquisition, the company projects EBIT margins of 8% 9% on higher revenue. The company reaffirmed Core business EBITDAS margin of 16% to 18%. Expect a positive contribution from VSI, and overall EBITDAS margins of 15% to 17%.

SonoSite Inc. introduced Enhanced Needle Visualization, a significant development in ultrasound imaging that enables improved needle tracking with increased confidence during deep needle procedures. Enhanced Needle Visualization is a proprietary imaging technology that intensifies the brightness of the needle, making it clearly visible during a steep angle approach to a deep target, conditions under which the needle has previously been difficult to image. Enhanced Needle Visualization is now available as a software upgrade for SonoSite's M-Turbo(R) and S Series(TM) ultrasound product lines. SonoSite's Enhanced Needle Visualization technology is the first fully-integrated solution to resolve the "lost needle phenomenon," 1 which has been an accepted constraint for needle-guidance since the creation of ultrasound imaging. Developed over the last two years, SonoSite's engineers collaborated with physicians worldwide and challenged the conventional principles of ultrasound system design to break new grounds for needle visibility. As a result, the revolutionary Enhanced Needle Visualization technology was introduced for SonoSite ultrasound systems. Enhanced Needle Visualization is fully-integrated into the architecture of SonoSite's systems and can be operated with a simple on/off button, enabling physicians to potentially decrease procedure time and considerably reduce costs per procedure. Enhanced Needle Visualization supports SonoSite's continuous efforts to provide physicians with innovative solutions to improve patient safety. This breakthrough technology is currently offered on SonoSite's HFL50 and HFL38 transducers for peripheral nerve block applications. SonoSite expects to expand applications for Enhanced Needle Visualization technology to a broad range of point-of-care specialties, including breast surgeons, musculoskeletal specialists, endocrinologists, interventional radiologists and emergency medicine physicians. SonoSite has applied for patent protection for this significant advance in needle visualization technology.

SonoSite Inc. announced that they will report Q2, 2010 results on Jul-26-2010