Orthofix Posts 39% revenue increase for Third Quarter
BY JOHN MCCORMICK, NOVEMBER 3, 2004
Last week Orthofix (Nasdaq: OFIX) announced that revenues for 3Q:04, were $71.5 million, an increase of 39 percent over the $51.3 million reported for 3Q:03. The 2004 revenue number includes the acquired Breg revenues. The Company noted that the incremental impact of foreign currency on sales for the third quarter of 2004 was a positive $1.3 million - or nearly 2 percent of all revenues.
Net income for 3Q:04, was $8.4 million or EPS of $0.53, an increase of 55% compared to $5.4 million, or EPS of $0.37, for 3Q:03.
In a public press release, Charles W. Federico, President and CEO of Orthofix, stated, "We are pleased to announce a 39 percent increase in revenue and a 55 percent increase in net income for the third quarter of 2004, compared to the same quarter of the prior year. Sales of trauma products were strong, up 18 percent over the prior year in the third quarter, led by 18 percent growth of the Physio-Stim, the Company's bone growth stimulator for long-bone non-unions, and 16 percent growth in external fixation. Reconstruction products also performed well, with strength from Breg products and external fixation products for reconstruction leading the way. Sales of the AV Impulse recovered in the third quarter from second quarter levels; however, as noted last quarter, the combination of lower contract prices and a more competitive environment will result in lower quarterly AV Impulse sales when compared to prior year periods. In the Spine sector, sales of spinal stimulation products were up 2 percent over the same period of the prior year and are up 4 percent year-to-date, while Orthotrac and EZ Brace sales were both down due to reimbursement issues."
Federico went on to state, "Breg continues to perform to our expectations with revenues up 13 percent for the third quarter and 12 percent for the year-to-date."
