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Symmetry Medical Inc. Reports Operating Results (10-Q)

August 03, 2012 | About:

10qk

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Symmetry Medical Inc. (SMA) filed Quarterly Report for the period ended 2012-06-30.

Symmetry Medicl has a market cap of $280.8 million; its shares were traded at around $8.99 with a P/E ratio of 27.4 and P/S ratio of 0.8.

Highlight of Business Operations:

During the second quarter 2012, Symmetry’s OEM Solutions business revenue decreased $10,840, or 12.6%, compared to the second quarter 2011. This decrease was primarily driven by significantly decreased customer demand in instruments and cases resulting from fewer and smaller customer launch volume. Additionally, foreign currency exchange rates negatively impacted revenue by $1,536 for all products. During the second quarter 2012, our combined five largest OEM customers decreased revenue by 13.8% compared to second quarter 2011, primarily driven by a reduction in their capital expenditures and by fewer and smaller customer launch volume. Our overall OEM Solutions revenue in the second quarter 2012 increased by $1,064 from the first quarter 2012.

Gross Profit. Gross profit for the three month period ended June 30, 2012 increased $4,543, or 20.4%, to $26,771 from $22,228 for the comparable 2011 period. Gross margin as a percentage of revenue increased 2.7%, to 26.2% for the second quarter 2012 from 23.5% for the comparable 2011 period.

On a consolidated basis, operating income (loss) increased $589, or 7.8% for the three month period ended June 30, 2012 as compared to the 2011 period due to an increase in Symmetry Surgical operating income of $5,140 partially offset by a decline in OEM Solutions operating income of $4,320 and an increase in unallocated costs of $231. Symmetry Surgical operating income increased by $5,140 and was 19.5% of segment revenue in the 2012 period as compared to operating income of $174 in 2011 primarily due to the acquisitions of Olsen Medical and Codman discussed previously. OEM Solutions operating income declined by $4,320 and was 6.9% of segment revenue in the 2012 period as compared to 11.0% in the prior year period due to declines in revenue and gross profit partially offset by the lower impact of facility closure and severance costs discussed previously.

Gross Profit. Gross profit for the six month period ended June 30, 2012 increased $10,364, or 24.9%, to $51,915 from $41,551 for the comparable 2011 period. Gross margin as a percentage of revenue increased 3.8%, to 25.6% for the six month period ended June 30, 2012 from 21.8% for the comparable 2011 period.

On a consolidated basis, operating income (loss) increased $3,528, or 33.1% for the six month period ended June 30, 2012 as compared to the 2011 period due to an increase in Symmetry Surgical operating income of $10,842 as well as a decline in Unallocated costs of $1,387 partially offset by a decline in OEM Solutions operating income of $8,701. The decline in the Unallocated operating loss is related primarily to the reduction in management transition expenses of $2,686 associated to the appointment of our new CEO in 2011. Symmetry Surgical operating income increased by $10,842 and was 19.9% of segment revenue in the 2012 period as compared to a loss in 2011. The year over year increase was primarily due to the acquisitions of Olsen Medical and Codman discussed previously. OEM Solutions operating income declined by $8,701 and was 5.6% of segment revenue in the 2012 period as compared to 9.8% in the prior year period due to declines in revenue and gross profit partially offset by the lower impact of facility closure and severance costs discussed previously.

Read the The complete Report

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