Exactech Reports 2003 Financials – Revenues Increase by 20% Driving a 22% Increase in Net Income
BY JOHN CHOPACK, FEBRUARY 23, 2004
Exactech reported that 2003 revenues totaled $71.3 million, an increase of 20% over 2002. Knee sales, which now total 57.4% of sales, increased by 23% to $41.3 million during the 4Q:02. Hips had a disappointing 2003, as they increased by 4% to $14.9 million but declined in the 4Q:03 by 3%. Management indicated that hip sales were being hurt by alternate bearing surfaces for total hip arthroplasty which include highly cross-linked polyethylene, ceramic-on-ceramic and metal-on-metal bearings. Currently, Exactech is not offering any of these alternate bearing surfaces, but may have a ceramic-on-ceramic hip in the market by the 1H:05. The Company is also working on developing a hard hip bearing surface incorporating its diamond technology licensed from Diamicron Corporation.
During 2004, knee sales are expected to remain strong driven by the introduction of an asymmetrical Optetrak knee system. However, management indicated that hip sales were likely to remain flat during the 1H:03 and accelerate slightly during 2004. It is expected that the introduction of a new press-fit hip system, a new acetabular system and minimally invasive instrumentation will drive the acceleration during the 2H:04.
Management is anticipating revenues to total between $81 million and $90 million during 2004 which represent an increase of between 13.6% and 26.4% over 2003 revenues. Exactech is expecting the growth in revenues will drive earnings per diluted share to total between $0.64 and $0.66 which is a 12.3% and 15.8% increase over 2002.
