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Savings Experiment: Snow RemovalGiven 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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Reader Comments (Page 1 of 1)
11-04-2007 @ 10:41AM
estelle Ddiamond said...
I would like to comment on Mr. Katsmans remarks relating to Given Imaging I..am a trustee of a Trust which holds shares in this company...and .. I have followed their "happenings" diligently..Right now I have some serious thoughts about the shares...First of all ,, the issue with Olympus is very peculiar,,the idea that additional companys using Pillcams " makes for more usage of the proceedure" which is a statement made at one of the conference calls by Mr.Shamir...doesnt account for the million or more dollars spent on litigation..either you want to go after Oympus or you wa to share the field with them gratus. at last weeks earnings conference call Mr.Shamir also said that the price of the Pill cam is still in the $450 range...does that mean that the fact that the dollar is down does not reflect on lower earnings.,or possibly warrant a change in the cost of the pillcam?..The conversion of the dollar into shekels surely some must have some effect on earnings...I read a statement made by the CEO of another Israeli compay and he referred to this issue. an upcoming medical meeting in NY. I am also wondering why at. a medical meeting coming up in a couple of days in NY..the Finance director will be presenting for Given...is he also a medical person.? Perhaps a Gastro MD? The market usually relects earnings months in advance...Givens earnings , for a company that is "Israels darling technical company" are not doing that...and finally at the earnings conference a person asked Mr.Shamir what the problem is with the FDA that is delaying the Colon Pill cam.. Mr Shamir did not answer.......as much as I am proud of Israels technical advances Im concerned with how many other companies will copy the Pillcams uncontested ,and will develop software to go with them...really buying the future deserves knowing how far into the future . one is purchasing Given Imaging