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Haemonetics Corp. Reports Operating Results (10-Q)

November 10, 2010 | About:
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10qk

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Haemonetics Corp. (HAE) filed Quarterly Report for the period ended 2010-10-02.

Haemonetics Corp. has a market cap of $1.44 billion; its shares were traded at around $58.17 with a P/E ratio of 19.4 and P/S ratio of 2.2. 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, Pioneer Investments, Jim Simons of Renaissance Technologies LLC, Jean-Marie Eveillard of First Eagle Investment Management, LLC.

Highlight of Business Operations:

Net revenues increased 6.2% and 6.0% for the second quarter and the first six months, respectively, of fiscal year 2011 over the comparable periods of fiscal year 2010. Foreign exchange accounted for a decrease of 0.4% and 1.4% for the second quarter and the first six months of fiscal year 2011, respectively. Without the effects of foreign exchange, net revenues increased 6.6% and 7.4% for the second quarter and the first six months of fiscal year 2011, respectively. This increase reflects the impact of recent acquisitions, which contributed 4.6% and 4.4% to revenue growth for the second quarter and first six months of fiscal year 2011, respectively, as well as strong year over year growth from our Russian distribution market and Asia businesses.

Net income increased 18.2% and 8.4% for the second quarter and the first six months of fiscal year 2011, respectively, over the comparable period of fiscal year 2010. Without the effects of foreign exchange which accounted for an increase of 0.7% for the quarter and a decrease of 10.8% for the six months, net income increased 17.5% and 19.2% for the second quarter and the first six months ended October 2, 2010, respectively. The increases in operating income, reduction in interest expense accrued on the contingent consideration associated with the Neoteric acquisition, lower foreign exchange losses, and a lower income tax rate were the principal reasons for the increase.

Disposables include the Plasma, Blood Bank, and Hospital product lines. Disposables revenue decreased 0.5% and 0.7% for the second quarter and the first six months of fiscal year 2011, respectively, over the comparable periods of fiscal year 2010. Foreign exchange resulted in a 0.1% and 1.0% decrease for the second quarter and the first six months of fiscal year 2011, respectively. Without the effect of foreign exchange, disposables revenue decreased 0.4% and increased 0.3% for the second quarter and the first six months of fiscal year 2011, respectively, 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 24.1% and 23.8% for the second quarter and the first six months of fiscal year 2011, respectively, compared to the same periods in fiscal year 2010. Foreign exchange accounted for a decrease of 2.2% and 0.6% for the quarter and six months, respectively. Without the effect of foreign currency, diagnostic product revenues increased by 26.3% and 24.4% for the quarter and six months, respectively. The revenue increase is due to new and continued adoption of this product as we continue to sell the TEG device to new customers.

Our software solutions revenues include revenue from software sales and related services. Software solutions revenues increased 77.2% and 85.6% for the second quarter and the first six months of fiscal year 2011, respectively, over the comparable periods of fiscal year 2010. Foreign exchange resulted in 2.6% and 0.4% of this increase for the quarter and six months, respectively. The remaining increase of 74.6% and 85.2% for the second quarter and the first six months of fiscal year 2011, respectively, was driven primarily by software services revenues associated with the recent acquisition of Global Med partially offset by product rationalization and volume reductions from our plasma customers.

Our equipment & other revenues include revenue from equipment sales, repairs performed under preventive maintenance contracts or emergency service visits, spare part sales, and various service and training programs. Equipment & other revenues increased 32.1% and 26.0% for the second quarter and the first six months of fiscal year 2011, respectively, over the comparable periods of fiscal year 2010. Foreign exchange resulted in a 0.8% and 1.4% decrease for the quarter and six months, respectively. Without the unfavorable effect of currency exchange, the increase of 32.9% and 27.4% for the second quarter and the first six months of fiscal year 2011, respectively, was driven by growth in our distribution markets and strong sales to the U.S. military. Also contributing to this increase was the impact of the SEBRA acquisition. Irrespective of the increases noted, equipment sales continue to be adversely impacted by restricted hospital capital spending and macro economic trends impacting health care funding in our distributor markets.

Read the The complete Report

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10qk
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