UPDATE 1-Vascular Solutions buys products, raises '10 view

Mon May 3, 2010 9:06am EDT

* Buys two ultrasound products for $5.75 mln

* Sees deal adding to earnings immediately

* Raises 2010 profit and revenue outlook

* Raises Q2 revenue view

May 3 (Reuters) - Medical device maker Vascular Solutions Inc (VASC.O) said it bought two products from a unit of Escalon Medical Corp (ESMC.O) for $5.75 million in cash, and raised its outlook for 2010 to reflect the impact from the deal.

The deal, which is expected to add to earnings immediately, will see Vascular paying $5.0 million at closing and $750,000 upon successful completion of the transfer of the manufacturing processes.

The two products, SmartNeedle and pdACCESS, consist of a hand-held monitor and one-time use needles that provide auditory ultrasound guided access to arteries and veins during catheterization procedures.

For 2010, the company raised its net income outlook by about 2 cents to 55 cents to 59 cents a share, including a 13 cents litigation gain recognized in the first quarter.

Net revenue forecast for the year was raised by about $2 million to $78 million to $80 million.

Second-quarter revenue net income is seen at 9 cents to 10 cents a share, on revenue of $19.2 million to $19.5 million, about $500,000 higher than the prior outlook.

Shares of the company closed at $9.90 Friday on Nasdaq. (Reporting by Esha Dey in Bangalore; Editing by Maju Samuel)