Haemonetics Corp. has a market cap of $1.36 billion; its shares were traded at around $54.63 with a P/E ratio of 18.9 and P/S ratio of 2.1. Haemonetics Corp. had an annual average earning growth of 10.1% over the past 10 years. GuruFocus rated Haemonetics Corp. the business predictability rank of 4.5-star.HAE is in the portfolios of Columbia Wanger of Columbia Wanger Asset Management, Jim Simons of Renaissance Technologies LLC, Pioneer Investments, Jean-Marie Eveillard of First Eagle Investment Management, LLC.
Highlight of Business Operations:Net revenues increased 5.8% for the first three months of fiscal year 2011 over the comparable period of fiscal year 2010. Without the unfavorable effects of foreign exchange which accounted for a decrease of 1.9% for the first three months of fiscal year 2011, net revenues increased 7.7% for the quarter. This increase reflects the impact of recent acquisitions which contributed 5.7% to revenue growth for the quarter, as well as strong year over year growth from our Russian distribution market and Asia businesses.
Our revenues generated outside the U.S. approximated 51% of total revenues for the first three months of both fiscal years 2011 and 2010. Revenues in Japan accounted for approximately 15.3% and 15.8% of total revenues for the first three months of fiscal year 2011 and 2010, respectively. Revenues in Europe accounted for approximately 26.1% and 28.0% of total revenues for the first three months of fiscal year 2011 and 2010, respectively. International sales are generally conducted in local currencies, primarily the Japanese Yen and the Euro. As discussed above, our results of operations are impacted by changes in the value of the Yen and the Euro relative to the U.S. Dollar.
Disposables include the Plasma, Blood Bank, and Hospital product lines. Disposables revenue decreased 0.9% for the first three months of fiscal year 2011 over the comparable period of fiscal year 2010. Foreign exchange resulted in a 1.9% decrease for the first quarter. Without the unfavorable effect of foreign exchange, disposables revenue increased 1.0% for the first three months of fiscal year 2011 which were driven primarily by increases in the Platelet product line offset by the decreases in Plasma disposables revenue as discussed below.
Diagnostics product revenue consists principally of the TEG products. Revenues from our diagnostics products increased 23.5% for the first three months of fiscal year 2011 compared to the same period in fiscal year 2010. Currency exchange accounted for an increase of 0.9% of this increase. Without the effect of currency, diagnostic product revenues increased by 22.6% for the quarter. The revenue increase in the quarter is due to new and continued adoption of this product following an increase in TEG equipment placements in the fourth quarter of fiscal year 2010.
Our software solutions revenues include revenue from software sales. Software solutions revenues increased 94.6% for the first three months of fiscal year 2011 over the comparable period of fiscal year 2010. Foreign exchange resulted in a 2.1% decrease for the quarter. The remaining increase of 96.7% for the first three months of fiscal year 2011 was driven primarily by revenues associated with the recent acquisition of Global Med which contributed 91.3% of the increase in software solutions revenue.
During the first three months of fiscal year 2011, selling, general and administrative expenses increased 9.1%. Foreign exchange resulted in a decrease in selling, general and administrative expenses of 0.1% during fiscal year 2011. Excluding the impact of foreign exchange, selling, general and administrative expense increased 9.2% for the first quarter. The increase was attributable to newly acquired businesses, SEBRA and Global Med Technologies, and transformation costs including costs to integrate Global Med. This was partly offset by cost reductions from planned synergies and a reduction in the expense associated with cash bonus compensation this fiscal year as the Companys financial results were lower than the financial targets established.
Read the The complete Report