UTICA — Sales grew 3.5 percent in the second quarter at ConMed Corp. (NASDAQ: CNMD), driving a nearly $2 million increase in net income at the medical-device manufacturer.
ConMed reported net income of $10.3 million, or 36 cents per diluted share, on sales of $189.7 million, compared with net income of $8.7 million, or 30 cents per diluted share, on sales of $183.2 million a year ago.
Those numbers fell shy of analysts’ expectations of 45 cents per share with revenue of $194.1 million.
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“ConMed delivered strong earnings and generated solid cash flow during the second quarter,” company President and CEO Joseph Corasanti said in a release.
The company benefited from strong single-use product sales, which increased 7.5 percent. Single-use products comprised 81.1 percent of total revenues for the quarter.
While single-use product sales increased, the company continued to see a decline in capital product sales, which declined 10.7 percent for the quarter. In the past, Corasanti has attributed the capital-product decline to hospitals holding off on making large equipment investments as they continue to recover from the recession.
The company saw 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 so far in 2012.
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 to $775 million range. Analysts estimate third quarter earnings of 40 cents per share with revenue of $187.1 million, in line with Corasanti’s forecast of earnings of 38 to 42 cents per share on sales of $180 million to $185 million.
Headquartered at 525 French Rd., 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.
Contact DeLore at tdelore@tmvbj.com
