LifeCell Corp. (NASDAQ:LIFC) Reported Strong Product Sales for 4Q:04 and FY:04
BY HUYEN NGUYEN, MARCH 14, 2005
LifeCell Corp. (NASDAQ:LIFC) reported a strong 49% increase in product revenues in 4Q:04 which was in line with consensus estimate of $0.04 per diluted share on a non-GAAP reporting standard. Product revenues in the 4Q:04 were $16 million compared to $10.7 million in 4Q:03. GAAP net income for the quarter was $4.1 million ($0.13 per diluted shares), compared to $17.2 million ($0.56 per diluted shares), in 4Q:03. From a non-GAAP reporting standard, net income for the quarter was $1.2 million ($0.04 per diluted shares) compared to $360 thousand ($0.01 per diluted shares) in 4Q:03.
For 2004, LIFC reported product revenues of $58.7 million, a 52% increase from $38.6 million in 2003. GAAP net income for the year was $7.2 million ($0.22 per diluted shares), compared to $18.7 million ($0.70 per diluted shares) in 2003. Adjusted net income, on a non-GAAP basis, was $4.3 million ($0.14 per diluted shares) compared to $1.2 million ($0.05 per diluted shares) in FY2003.
From a GAAP reporting perspective during the 4Q:04, the company received a non-cash benefit of $2.9 million for deferred tax assets. Last year during the 4Q:03, LIFC added an income tax benefit of $16.6 million in its operating income.
As of December 31, 2004, cash and investments was $27 million, compared to $18.5 million on December 31, 2003. The company used $8.7 million in operating cash flow and exercised $3 million in stock options in FY'04.
Q4 Highlights:
- 49% increase in product revenues
- 251% increase in operating income
- 255% increase in net income (excluded favorable impact of tax benefit)
- 72% in gross margin
- Added 5 more sales personnel, which brings the total to 42 direct reps
Products Highlights for the quarter & the year:
- AlloDerm® Regenerative Tissue Matrix
- Primary driver for product growth and represented 83% of product revenues in 4Q:04
- 71% increase yr./yr. to $12 million in Q4
- 2004 - 79% increased yr./yr. to $42.5 million
- Gained $1 million in each quarter consecutively
- Continued to grow strong with each quarter averaging 80% yr./yr growth
- Repliform®
- Decreased by 20% yr./yr. to $1.6 million in Q4
- Continued on a downward trend in each quarter by 20% yr./yr.
- GraftJacket® and AlloCraft™DBM(products were launched in 1Q:03)
- GraftJacket® - $1.6 million in Q4 and $4.1 million in FY'04
- AlloCraft™DBM - reached $1.1 million in Q4 and $1.8 million in FY'04
- Continued to gain acceptance within the Orthopedics community
FY2005 Outlook:
- Product revenues to range between $71.5 million to $75.5 million
- Product growth to range between 22% and 29%
- Total revenues (including research grants) to range between $73 million to $77 million
- Operating income to range between $12 million to $13 million
- Diluted net income to range between $0.22 to $0.24 per share (based on current shares outstanding)
