Edwards Lifesciences Corp. (NASDAQ:EW) reported upbeat results for its second quarter on Thursday.
The Irvine, Calif.-based company revealed sales for the quarter ended June 30, 2020 were $925 million, a decrease of 15% over the prior year, or down 14% on an underlying basis. Diluted earnings per share for the quarter were negative $0.20, while adjusted earnings per share decreased 26% to $0.34.
For the quarter, the company's adjusted gross margin was 74.4%, down from 76.4% in the prior year quarter. This year's rate included incremental costs associated with responding to COVID-19, and a negative impact from foreign exchange.
Selling, general and administrative expenses in the second quarter were $275 million, or 29.7% of sales, compared to $308 million in the prior year. This reduced spending resulted from the impact of COVID-19, which interrupted the company's planned flow of operating expenses.
Research and development expenses in the second quarter were $182 million, or 19.7% of sales, compared to $192 million in the prior year. This decrease was primarily the result of high clinical spending in the prior year, as well as reduced current year clinical trial activity due to COVID-19.
Free cash flow for the second quarter was $123 million, defined as cash flow from operating activities of $231 million, less capital spending of $108 million.
Cash and investments totaled $1.7 billion at June 30, 2020. Total debt was $595 million.
EW shares dipped three cents to $77.29, in Friday’s first hour of trading.
