June 2009 -- Revenue grew by 12% in the first quarter of 2009 to $470.1 million for medical technology maker Kinetic Concepts Inc. compared with the same period one year ago. Despite that gain, net earnings declined nearly 42% to $39.7 million, or 57 cents per diluted share, in the same time frame. "In the first quarter we saw the impact of a weak global environment on parts of the business," said Catherine Burzik, company president and CEO.
Hurting first-quarter net earnings in 2009 were expenses associated with a 4% workforce reduction and restructuring announced earlier in the quarter. As a result, selling, general and administrative expenses increased by $22.7 million, or 23%, over the first quarter of 2008. Additionally, research and development expenses grew by 50% -- to $22.1 million -- compared with the first quarter of 2008 due primarily to a second-quarter 2008 acquisition, the company said in its earnings release. First-quarter net earnings also were reduced by interest expense of $28.5 million, which was up significantly from $1.1 million in the same period in the prior year. The interest expense was due to acquisition-related debt outstanding.
