Connetics cuts guidance
In its preliminary first quarter earnings announcement, dermatology company CNCT cut its 2006 guidance to reflect a new accounting method for rebate reserves, which the company said have not been adequately accounted for. CNCT lowered its 2006 non-GAAP diluted EPS guidance to $0.61-$0.67 from $0.67-$0.71. The company also cut its revenue guidance for the year to $211-$217 million from $221-$225 million to reflect the increased competition for psoriasis drug Soriatane. As a result of the rebate accounting changes, the company also will restate its financial results for past periods.
The company posted preliminary first quarter non-GAAP diluted EPS of $0.07 and revenues of $47.7 million. CNCT will report full first quarter results and its restated financials "as soon as is practicable." This quarter, the company expects $50.5-$52.5 million in revenues and diluted non-GAAP EPS of $0.11-$0.13. ...