ConMed profit falls 27 percent in 2nd quarter

UTICA, N.Y. — ConMed Corp. (NASDAQ: CNMD), a Utica–based surgical-device maker, reported net earnings of $7.5 million in the second quarter, down 27 percent from $10.3 million in the year-ago period, as its revenue fell and it faced restructuring costs.

The firm’s net earnings per share of 27 cents also declined 27 percent, compared to 37 cents in the prior-year quarter.

ConMed’s reported net earnings included restructuring costs in 2015 and 2014, as well as charges for a patent dispute and shareholder activism in 2014, the company said in its earnings news release issued late Tuesday.

Excluding the impact of the restructuring costs and charges, ConMed’s adjusted net earnings of $9.9 million decreased 23.5 percent year over year, and its adjusted diluted net earnings per share of 36 cents declined 23.4 percent year over year.

ConMed generated revenue of $181 million in the second quarter, a drop of 3.8 percent compared to the second quarter of 2014.

Its domestic sales, which represented 49.2 percent of total revenue, increased 1.9 percent, driven by growth in capital-equipment sales. International sales, which represented 50.8 percent of total revenue, declined 8.7 percent compared to the second quarter of 2014 on a reported basis, ConMed said.

“I am encouraged by the progress we have made throughout our commercial organization, and we exited the second quarter with positive momentum across our business. We are well positioned for accelerating growth in the second half and, importantly, remain on track to achieve our full year financial guidance,” Curt Hartman, president and CEO of ConMed, said in its news release.

The Utica–based firm also reiterated its constant-currency sales guidance, which calls for organic sales growth in 2015 in the range of 1 percent to 3 percent.

Using current exchange rates, ConMed continues to anticipate that reported sales for 2015 will be in the range of $723 million to $738 million and that adjusted diluted net earnings per share will be in the range of $1.82 to $1.92.

Shares of ConMed were trading down $2.02, or nearly 3.4 percent, at $57.75, as of 2:20 p.m. Wednesday afternoon, according to Yahoo Finance.

ConMed manufactures surgical devices and equipment for minimally invasive procedures. The firm says its products are used by surgeons and physicians in a variety of specialties, including orthopedics, general surgery, gynecology, neurosurgery, and gastroenterology.

The company has a direct selling presence in 16 countries outside the U.S., and international sales make up more than half of its total sales.

ConMed employs 3,400 people, according to its news release.

Contact Reinhardt at ereinhardt@cnybj.com