Filed under: Earnings reports, Stocks to Buy
Given Imaging (NASDAQ: GIVN), the poster-boy for Israeli ingenuity, today announced Q3 numbers that were a bit soft on the revenue line. The company produces the “cool” PillCam technology. Given Imaging has revolutionized the gastrointestinal diagnosis industry with the PillCam video capsule, a disposable, miniature video camera contained in a capsule, which is ingested by the patient and allows for the non-invasive visualization of the GI tract. How cool is that! Sticking a camera into a pill. It’s even been a favorite of Cramer.
It’s all great to have cutting edge technology, but for an investor, it’s all about results. The past few quarters have been quite good, making today’s numbers even more disappointing. Homi Shamir, president and CEO of Given Imaging explained the problems: “Revenue in the third quarter and our expected revenue for fiscal year 2007 have been impacted by several factors — first, a delay in our plan to bring PillCam COLON to the U.S. market this year as a result of our ongoing discussions with the U.S. Food and Drug Administration regarding clearance of PillCam COLON; second, the delay associated with receiving a monetary code for PillCam SB in France which we now expect to occur in the first half of 2008; and third, a shortfall in sales in one of our U.S. regions where actions have been taken to address operational issues.”
This is shaping up to be a good second half of ‘08 story. It seems that the next quarter may be a little soft as well, but once the company solves its problems, look for the stock to head much higher.
Disclosure: Author holds a position in GIVN. He holds no position in any other stock mentioned as of 11/1/07.
Aaron Katsman is the lead Portfolio Manager and Managing Director of America Israel Investment Associates, LLC. and Senior Editor of IsraelNewsletter.com.
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