CardioNet, Inc. Reports Third Quarter EPS of $(0.31)

CardioNet, Inc. BEAT today reported results for the third quarter ended September 30, 2010. Revenues for the third quarter 2010 were $27.5 million, a decrease of 17.6% compared to $33.3 million in the third quarter 2009. The decrease in revenues was driven by the impact of the 2009 Medicare rate reduction, as well as lower commercial reimbursement rates in 2010. In addition, event patient volume was down in the third quarter 2010 compared to the third quarter 2009. For the three months ended September 30, 2010, payor revenue was comprised of 36% Medicare and 64% commercial, and patient volume was comprised of 43% Medicare and 57% commercial. Gross profit for the third quarter 2010 decreased to $15.5 million, or 56.6% of revenues, compared to $21.5 million, or 64.5% of revenues, in the third quarter 2009. Third quarter 2010 gross profit margin was impacted by the 2009 Medicare and 2010 commercial rate reductions, as well as flat MCOTTM patient volume growth. On a GAAP basis, operating expenses for the third quarter 2010 were $23.1 million, a decrease of 15.9% compared to $27.4 million in the third quarter 2009. Operating expenses on an adjusted basis declined by 17.0% compared to the prior year quarter, excluding $1.4 million in the third quarter 2010 and $1.3 million in the third quarter 2009 related to restructuring and other nonrecurring charges. On a GAAP basis, net loss for the third quarter 2010 was $7.5 million, or a loss of $0.31 per diluted share, compared to net loss of $5.4 million, or a loss of $0.23 per diluted share, for the third quarter 2009. Excluding expenses related to restructuring and other charges, adjusted net loss for the third quarter 2010 was $6.1 million, or a loss of $0.25 per diluted share. This compares to adjusted net loss of $3.9 million, or a loss of $0.16 per diluted share, for the third quarter 2009, which excludes the impact of restructuring and other charges.