12.05.07
At the end of October, Warsaw, IN-based orthopedic device maker Zimmer reported a 10% increase in revenue for the third quarter ended Sept. 30. Revenue hit $903 million but was just shy of Wall Street’s expectation of $908 million.
Including the $169.5 million charge related to the settlement of a federal investigation (see News Front on page 10), net earnings for the quarter fell to $44.5 million—a 76% decrease. Adjusted earnings (removing the negative effect of the one-time settlement charge) were $215 million, an increase of 15%. Net earnings for the first nine months of 2007 were $509 million.
“This was a quarter of solid sales growth and earnings achievement while we advanced our strategic direction through acquisition,” said David Dvorak, Zimmer Holdings’ president and CEO.
During the quarter, Zimmer announced the deal purchase Montreal, Canada-based ORTHOsoft Inc., a developer of computer surgical navigation in orthopedics. Also in the third quarter, the company purchased 1.97 million shares of its common stock for a total of $155 million under its repurchase program.
Third-quarter worldwide net sales of knees totaled $378 million, an increase of 12%. Sales of hips grew 8% to $299 million. Sales of trauma products grew at a slower rate, up only 2% for the quarter to $49 million. Spine product sales grew 9% to $46 million. Dental products grew significantly by 19% to $50 million, and sales for the company’s extremities products increased 36% to $24 million.
Looking forward, the company expects fourth-quarter sales to be in the range of $1.027 to $1.032 billion, or 10% to 11% growth, compared to the same period last year—though still below analysts’ expectations. For the full fiscal year, Zimmer expects revenues in the range of $3.851 to $3.856 billion, an increase of 10%.
Domestic sales were particularly strong, with Orthopaedic Implants growing 16% and MedSurg up 20%, while international sales growth accelerated to 11% operationally. Growth also was aided by Stryker’s endoscopy and artificial hip and knee products, in addition to currency exchange benefits.
Net sales were $4.3 billion for the first nine months of 2007, representing a 15.9% increase compared to net sales of $3.7 billion for the first nine months of 2006. Net earnings for the first nine months of 2007 were $710.6 million, a 30.5% increase compared to the first three quarters of 2006.
The latest financial forecast for 2007 includes a net sales increase in the range of 13% to 13.5%, up from the previous forecast of 12% to 13% growth, based on continued strong sales from Stryker’s implant and MedSurg divisions.
Kensey Nash in Exton, PA reported an increase in total revenue for the first quarter of 2008. Total revenue, which includes net sales and royalty income, was $17.6 million for the quarter ended Sept. 30, an increase of 8% compared to the first quarter of 2007.
Net sales increased 9% to $11.5 million from $10.6 million in the first quarter of fiscal 2007. Much of the overall sales increase was due, in large part, to a surge in the company’s growing orthopedic product line, which increased 40% to $6.1 million from $4.4 million in 2007. The company’s spine and sports medicine divisions increased 42% and 16%, respectively. Overall net sales of biomaterials products increased 3% to $10.2 million.
For the first quarter of 2008, the company reported a net loss of $222,341, compared to earnings of $1.43 million for the first quarter of 2007.
Carlsbad, CA-based Alphatec Holdings, a developer of products for the surgical treatment of spine disorders, reported record sales growth for its third quarter ended Sept. 30. Consolidated revenues for the third quarter of 2007 were $20.3 million, an increase of 8% from the $18.8 million reported for the second quarter of 2007 and an increase of 17.1% from the $17.4 million reported for the third quarter of 2006.
Domestic revenues were $16.8 million, an increase of 20% from the third quarter of 2006. Asia revenues were $3.5 million, an increase of 4.6% compared to 2006.
Net loss for the third quarter was $5.6 million, compared to a net loss of $703,000 for the second quarter of 2007 and a loss of $5.5 million for the third quarter of 2006. Net revenue for the first three quarters was $58.7 million, an increase of 7.1%, though net loss for the year was $9 million (compared to a net loss of $18 million in 2006).
Including the $169.5 million charge related to the settlement of a federal investigation (see News Front on page 10), net earnings for the quarter fell to $44.5 million—a 76% decrease. Adjusted earnings (removing the negative effect of the one-time settlement charge) were $215 million, an increase of 15%. Net earnings for the first nine months of 2007 were $509 million.
“This was a quarter of solid sales growth and earnings achievement while we advanced our strategic direction through acquisition,” said David Dvorak, Zimmer Holdings’ president and CEO.
During the quarter, Zimmer announced the deal purchase Montreal, Canada-based ORTHOsoft Inc., a developer of computer surgical navigation in orthopedics. Also in the third quarter, the company purchased 1.97 million shares of its common stock for a total of $155 million under its repurchase program.
Third-quarter worldwide net sales of knees totaled $378 million, an increase of 12%. Sales of hips grew 8% to $299 million. Sales of trauma products grew at a slower rate, up only 2% for the quarter to $49 million. Spine product sales grew 9% to $46 million. Dental products grew significantly by 19% to $50 million, and sales for the company’s extremities products increased 36% to $24 million.
Looking forward, the company expects fourth-quarter sales to be in the range of $1.027 to $1.032 billion, or 10% to 11% growth, compared to the same period last year—though still below analysts’ expectations. For the full fiscal year, Zimmer expects revenues in the range of $3.851 to $3.856 billion, an increase of 10%.
Stryker Q3 Income Jumps 21%
Stryker Corp. of Kalamazoo, MI reported a net sales increase of 18% to nearly $1.5 billion for the third quarter ended Sept. 30. Net income jumped to $228.7 million, a 21% increase from $188.4 million a year earlier.Domestic sales were particularly strong, with Orthopaedic Implants growing 16% and MedSurg up 20%, while international sales growth accelerated to 11% operationally. Growth also was aided by Stryker’s endoscopy and artificial hip and knee products, in addition to currency exchange benefits.
Net sales were $4.3 billion for the first nine months of 2007, representing a 15.9% increase compared to net sales of $3.7 billion for the first nine months of 2006. Net earnings for the first nine months of 2007 were $710.6 million, a 30.5% increase compared to the first three quarters of 2006.
The latest financial forecast for 2007 includes a net sales increase in the range of 13% to 13.5%, up from the previous forecast of 12% to 13% growth, based on continued strong sales from Stryker’s implant and MedSurg divisions.
Kensey Nash’s Q1 2008 Aided by Orthopedic Sales
Kensey Nash in Exton, PA reported an increase in total revenue for the first quarter of 2008. Total revenue, which includes net sales and royalty income, was $17.6 million for the quarter ended Sept. 30, an increase of 8% compared to the first quarter of 2007.
Net sales increased 9% to $11.5 million from $10.6 million in the first quarter of fiscal 2007. Much of the overall sales increase was due, in large part, to a surge in the company’s growing orthopedic product line, which increased 40% to $6.1 million from $4.4 million in 2007. The company’s spine and sports medicine divisions increased 42% and 16%, respectively. Overall net sales of biomaterials products increased 3% to $10.2 million.
For the first quarter of 2008, the company reported a net loss of $222,341, compared to earnings of $1.43 million for the first quarter of 2007.
Alphatec Reports Record Sales, Net Loss
Carlsbad, CA-based Alphatec Holdings, a developer of products for the surgical treatment of spine disorders, reported record sales growth for its third quarter ended Sept. 30. Consolidated revenues for the third quarter of 2007 were $20.3 million, an increase of 8% from the $18.8 million reported for the second quarter of 2007 and an increase of 17.1% from the $17.4 million reported for the third quarter of 2006.
Domestic revenues were $16.8 million, an increase of 20% from the third quarter of 2006. Asia revenues were $3.5 million, an increase of 4.6% compared to 2006.
Net loss for the third quarter was $5.6 million, compared to a net loss of $703,000 for the second quarter of 2007 and a loss of $5.5 million for the third quarter of 2006. Net revenue for the first three quarters was $58.7 million, an increase of 7.1%, though net loss for the year was $9 million (compared to a net loss of $18 million in 2006).