UTICA — Medical technology company ConMed Corp. (NASDAQ: CNMD) reported a 19 percent increase in net income and 20 percent rise in earnings per share in the second quarter on a 3.5 percent increase in total sales. Sales were driven higher by a 7.5 percent climb in revenue from single-use surgical products. However, the Utica–based […]
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UTICA — Medical technology company ConMed Corp. (NASDAQ: CNMD) reported a 19 percent increase in net income and 20 percent rise in earnings per share in the second quarter on a 3.5 percent increase in total sales. Sales were driven higher by a 7.5 percent climb in revenue from single-use surgical products.
However, the Utica–based medical-device manufacturer slightly reduced its projected sales for the third quarter after softer-than-expected sales in capital equipment during the first half of 2012.
ConMed reported second-quarter net income of $10.3 million, or 36 cents per share, on sales of $189.7 million, up from net income of $8.7 million, or 30 cents a share, on sales of $183.2 million in the year-ago period.
“ConMed delivered strong earnings and generated solid cash flow during the second quarter,” company President and CEO Joseph Corasanti said in the profit report.
Single-use product sales totaled nearly $154 million, contributing 81 percent of the company’s total revenue for the second quarter.
While single-use product sales rose, ConMed continued to see a decline in capital-product sales, which fell almost 11 percent to just under $36 million in the second quarter, compared to the year-ago period.
As he has in the past, Corasanti attributed the capital-product sales decline to hospitals holding off on making large equipment investments, as he discussed the company’s earnings during a July 26 conference call with investors and the media.
In addition, Corasanti said hospitals may be delaying purchases this year as they await new capital products ConMed will release in 2013.
ConMed reported that it is seeing some benefit from its association with the Musculoskeletal Transplant Foundation (MTF). On Jan. 3, ConMed became the exclusive marketer of MTF’s sports-medicine allograft tissues. The deal generated
$7.2 million in revenue for ConMed in the second quarter and $14.7 million through the first six months of 2012.
Corasanti said he also expects his company’s Altrus vessel-sealing device to provide solid financial returns for the company this year. ConMed launched Altrus late in 2011, but production delays and some lingering performance issues hindered sales in the first quarter, he said during the conference call. Those issues were resolved in the second quarter, when Altrus generated just over $500,000 in sales. Going forward, Corasanti said he expects Altrust to generate full-year sales between $4 million and $6 million in the $2 billion vessel-sealing market.
Looking ahead, Corasanti affirmed his previous full-year estimate of $1.75 to $1.85 per share in earnings, but lowered his sales forecast by $10 million to the $765 million-$775 million range for the year.
Analysts currently estimate ConMed to produce third-quarter earnings of 40 cents a share on revenue of $184 million, according to Yahoo Finance/Thomson Financial Network data. That’s in line with Corasanti’s forecast of earnings of 38 to 42 cents per share on sales of $180 million to $185 million.
ConMed’s board of directors declared a cash dividend of 15 cents per share, paid on July 6. ConMed first began paying dividends earlier this year.
Year to date through Aug. 1, ConMed’s stock price had increased almost 5 percent.
Headquartered at 525 French Road, Utica, ConMed (www.conmed.com) manufactures surgical devices and equipment for minimally invasive procedures and patient monitoring. The company employs about 3,400 people worldwide.
