ArthroCare Fiscal 2003 Revenues Grow 34 Percent; Reports Strong 4th Quarter
BY JOHN MCCORMICK, FEBRUARY 2, 2004
ArthroCare (ARTC) reported strong year-over-year revenue growth where total 2003 revenues reached $118.9 million compared with $88.8 million in 2002. Product sales in 2003 were $114.7 compared to $85.0 million in 2002. In 2003, gross margin on product sales increased to 67% from the 61% in 2002. Net income for 2003 came in at $7.5 million, or $0.34 per diluted share, compared with $1.1 million, or $0.05 per diluted share, for 2002. Total revenues for 4Q:03 were $32.5 million, a 33% increase over the $24.4 million reported in 4Q:02. In the 4Q:03, ARTC reported product revenues of $31.3 million, likewise a 33% increase over the $23.6 million recorded in 4Q:02. Sports Medicine revenue increased 16 percent during 4Q:03 compared with 4Q:02 and represented 68 percent of total product sales. ARTC reported net income of $2.8 million, or $0.13 per diluted share, for 4Q:03, compared to a net loss of $1.1 million, or $0.05 per diluted share, reported in 4Q:02.
ArthroCare markets arthroscopic surgery systems based on its Coblation® technology which is a low temperature plasma that breaks chemical bonds in soft tissue in a way that reduces damage to surrounding tissue. The Company targets the sports medicine, spine, ENT and urology markets.
