Exactech Reports a 16% Increase in 1Q:04 Revenues
BY JOHN CHOPACK, MAY 3, 2004
Exactech (EXAC:NASDAQ) announced that revenues totaled $21 million during the 1Q:04 which was a 16% increase over the 1Q:03. Knee sales, which accounted for approximately 60% of 1Q:04, increased by 21% over the same period a year. The Optetrak knee system, EXAC's flagship product, continues to gain market share. Additionally, an asymmetrical version of the original Optetrak System was launched during the quarter which also contributed to the 21% increase in knee revenues.
Hip sales totaled approximately $4.2 million, which was a 15% increase over the 1Q:03. The growth in hip sales was a significant improvement over the recent growth in hip products, which was only 3.5% in 2003. The growth in hip sales was attributable to increased penetration of EXAC products which are sold under the LINK distribution agreement.
The strong revenue growth combined with a 3% reduction in operating expenses as a percentage of sales during the 1Q:04 versus the 1Q:03 drove a 20% increase in net income which totaled $1.9 million ($0.16 per diluted share).
During their conference call, management commented on several product development initiatives at Exactech especially within the alternate bearing hip arthroplasty market. This includes introduction of:
- an enhanced polyethylene in the 1H:05
- a ceramic-on-ceramic hip in the 1H:05
- Diamond hip bearing in the clinic in 2H:05
Management now expects revenues to total between $19.5 and $21.5 million and earnings to be in the range of $0.15 to $0.16 per diluted share during the 2Q:04. They also updated their guidance for the full-year 2004 anticipating revenues to total $82 to $90 million with earnings to be between $0.64 and $0.67 per diluted share.
