Vital Signs swings to Q4 loss from a year ago

Vital Signs, Inc. (Nasdaq: VITL) this morning said it swung to a loss in its fourth quarter from a year ago and took four non-cash charges in the quarter.

For the three months ended Sept. 30, the Totowa, N.J.-based company said it recorded a net loss of $5.35 million, or $0.40 per share, from a net profit of $8.25 million, or $0.62 per share for the fourth quarter of fiscal 2006.

The company recognized four non-cash charges during the fourth quarter, including a goodwill impairment charge of $13.2 million for the pharmaceutical technology services segment that previously classified as discontinued operations, an increase in its distributor rebate allowance by $4.7 million after obtaining new information from its two largest distributors on their inventory levels, a long-lived asset impairment of $1.9 million reflecting a business decline at a sleep disorder company acquired in April 2007 and a $1.2 million increase in an allowance for unauthorized customer cash payment discounts.

Revenues declined 3.5% to $50.48 million, compared with $52.33 million booked in the same period last year.

Vital Signs offers single-use airway management products for the anesthesia, respiratory and critical care, and sleep disorder markets worldwide.

Shares of Vital Signs (VITL) slid 6.19%, or $3.30, to $50 in pre-market trading. Shares of Vital Signs have been trading in the range of $ for the past 52 weeks.

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