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SurModics Inc. Reports Operating Results (10-Q)

August 09, 2012 | About:
10qk

10qk

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SurModics Inc. (SRDX) filed Quarterly Report for the period ended 2012-06-30.

Surmodics, Inc. has a market cap of $308.2 million; its shares were traded at around $17.755 with a P/E ratio of 36.6 and P/S ratio of 4.6.

Highlight of Business Operations:

Medical Device. Revenue in Medical Device was $27.9 million in the first nine months of fiscal 2012, a decrease of 5% compared with $29.4 million for the first nine months of fiscal 2011. The decrease in total revenue reflected $2.5 million of lower royalty revenue, partially offset by higher R&D revenue and product sales. Our royalty and product revenue from Cordis decreased $4.1 million in the first nine months of fiscal 2012 compared with the first nine months of fiscal 2011. Partially offsetting this impact was growth of approximately 9% in our hydrophilic coatings royalties associated with other medical device customers.

In Vitro Diagnostics. Revenue in In Vitro Diagnostics was $10.2 million in the first nine months of fiscal 2012, an increase of 8% compared with $9.5 million for the prior-year period. This increase was attributable to $1.0 million of higher sales of our stabilization, antigens and microarray slide products, partially offset by $0.3 million of lower sales of other products.

Product costs. Product costs were $5.5 million in the first nine months of fiscal 2012, compared with $4.7 million in the prior-year period. The $0.8 million increase in product costs principally reflected the mix of products sold. Overall product gross margins averaged 65% in the first nine months of fiscal 2012, compared with 68% for the prior-year period. The decrease in product gross margins reflected the mix of products sold in the first nine months of fiscal 2012, as there were increased levels of lower margin diagnostic product sales compared with prior-year results and an increase in scrapped materials.

Medical Device. Operating income was $13.2 million in the first nine months of fiscal 2012, compared with $15.0 million in the first nine months of fiscal 2011. The decreased operating income resulted principally from $4.7 million lower royalty revenue and reagent sales from our license agreement with Cordis related to the CYPHER® and CYPHER SELECT® Plus stents in fiscal 2012 compared with fiscal 2011, partially offset by $3.2 million in increased revenue from customers other than Cordis. In addition, there was recognition of $0.8 million in qualified therapeutic grant income in fiscal 2011. Partially offsetting these factors were improved product gross margins of 68% in fiscal 2012 compared with 67% in fiscal 2011, and lower compensation and occupancy costs in fiscal 2012.

In Vitro Diagnostics. Operating income was $3.2 million in the first nine months of fiscal 2012, compared with $3.4 million in the first nine months of fiscal 2011. High product costs offset an increase in product sales of $0.7 million compared with the prior-year period. Product gross margins declined to 63% in fiscal 2012 compared with product gross margins of 67% in the prior-year period. Operating expenses were principally the same in both periods.

Read the The complete Report

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