A Medical Device Daily
Datascope (Montvale, New Jersey) said it is considering strategic alternatives, including the company's possible sale, after receiving interest from several unnamed third parties.
It also issued earnings expectations for the current quarter and the next fiscal year.
Datascope said it was approached by several third parties that were considering making a bid for the company after the $202 million sale of its patient monitoring business to Mindray Medical International (Shenzhen, China) was disclosed back in March.
The company said while its board has not yet made a decision whether or not to sell itself, it has authorized its financial adviser, Lehman Brothers, to begin discussions with those interested parties. Datascope said it will hold the cash from the sale of its patient monitoring business to allow for financial flexibility during the process.
Datascope said it will not discuss the status of negotiations until the strategic review process has been completed.
And because the company said its business has "significantly changed" following the patient monitoring unit sale, Datascope decided to offer earnings expectations for the current quarter and the next fiscal year.
The company predicts fiscal fourth-quarter earnings from continuing operations, which exclude some items, of 46 cents per share to 48 cents per share. It expects year-over-year quarterly sales growth of 6% to 7%. Datascope's fiscal year ends in June.
For fiscal 2009, Datascope forecasts earnings from continuing operations of $1.92 per share to $2.03 per share. It anticipates sales growth of 7% to 9%, or revenue of $250 million to $254 million.