Exactech (EXAC:NASDAQ) Reports 4Q:04 Financials which were slightly below Analyst Expectations
BY JOHN CHOPACK, MARCH 7, 2005
EXAC reported revenues of $21.3 million during the 4Q:04 which was a 14% increase over the 4Q:03 but was $300 thousand below analyst's expectations. Earnings-per-share on a diluted basis totaled $0.17 which was also slightly below analyst expectations of $0.16. Revenue growth during the 4Q:04 was driven by strong Optetrak Knee sales which increased by 16% during the 4Q:04. During the previous three quarters Optetrak sales increased 18%, 17% and 16% over the prior year. We believe this is slightly faster than the overall market growth rate of approximately 14%. Knee revenues represented approximately 60% of total sales during the 4Q:04.
Source: Company Reports
Sales of hip revenues rebounded nicely during the 4Q:04, totaling $3.9 million which was a 6% increase over the 4Q:03. However, this is well below the market growth rate which we estimate to be approximately 12%.
Exactech is primed for significant product launches during the upcoming quarters. The Company already announced the launch of its asymmetric knee and recently launched its OpteCure and OpteMx spinal bone graft products. Exactech also released its Equinoxe total shoulder system earlier this year. During both its recent conference call as well as at our meeting at AAOS the Company spoke about upcoming product launches including: low profile knee instrumentation,
Equinoxe fracture shoulder system, and a rotating knee in Europe. More attractive is Exactech's upcoming launch into the alternate bearing hip surface market. The Company expects to have a enhanced cross-linked polyethylene and a ceramic acetabular insert in the market during the 2H:05 and 2006, respectively. Exactech also anticipates that its Diamond-on-Diamond hip IDE trial will commence during the second half of this year.
Management provided guidance for revenues to total between $22-24 million and earning-per-share (on a diluted basis) to total $0.16-0.17 during the 1Q:05. For the fiscal year 2005, management expects revenues to range between $90 million and $100 million with earnings-per-share (on a diluted basis) to range between $0.62 and $0.68.
