Mentor’s profit is down 20%; sales beat estimates

Mentor Corp., a maker of products used in cosmetic and reconstructive surgery, said its fiscal second-quarter profit fell 20%, but it beat Wall Street’s revenue expectations.

Mentor, which is awaiting final approval for its silicone-gel breast implants to go back on the market, said profit fell to $9.7 million, or 22 cents a share, in the quarter ended Sept. 30 from $12.1 million, or 25 cents, a year earlier. Analysts polled by Thomson Financial had expected 24 cents a share.

Results include a cost of 5 cents a share for stock-option- based compensation and a 2-cent-a-share cost related to severance payments.

Sales rose 14% to $66.9 million, in part because of strong sales of breast and facial products. Analysts had expected $64.9 million.

Santa Barbara-based Mentor said it expected 2007 revenue of $290 million to $305 million. Wall Street is predicting sales of $299.3 million.