Spectranetics fourth quarter 2010 earnings was its largest quarterly profit in more than three years.
The Colorado Springs-based company made $513,000 during the quarter, compared to an operating loss for the same period in 2009. The 2009 loss represented a $5 million settlement with the federal government, ending uncertainty over allegations that the company illegal imported medical devices.
Spectranetics manufactures medical laser devices.
Revenue for the fourth quarter declined 1.2 percent to $29.3 million.
According to the company’s SEC filings, it lost money during 2010, despite the profits of the final quarter.
Overall profit for 2010 was down 2.3 percent to $13.1 million. The problems arose from one-time payments to a former CEO, severance salaries for employees and millions in legal fees.
Spectranetics paid former CEO Emile Geisenheimer a lump sum of $517,500, as well as common stock payments of $418,000.
The company also fired 14 people, with severance obligations equaling $664,000 for the year. Without the losses, which included $6.8 million in legal fees, the company’s profit would have been $2.54 million.
Spectranetics is still looking for a replacement CEO. In the meantime, the company is being run by a three-person executive council with Guy Childs, CFO; Shar Matin, senior vice president of operations; and Jason Hein, senior vice president.
The company told stockholders today that it expects to increase revenue this year between 4 and 7 percent.
“Our operating focus in 2011 is to execute projects already underway that will drive revenue growth,” said Shar Matin, senior vice president of operations. “Toward that end, we expect to introduce new products and product enhancements by the end of 2011…”