) second quarter fiscal 2013 (ended Mar 31, 2013) earnings
(excluding special items) of 20 cents per share missed the Zacks
Consensus Estimate by 2 cents. The second quarter fiscal 2013
earnings increased 25% from the year-ago period. The
year-over-year growth was attributable to higher revenues.
Quarter in Detail
Adjusted revenues climbed 12.3% year over year to $13.7 million.
The Zacks Consensus Estimate was $14 million. Increased sales of
vitro diagnostics offerings and hydrophilic coatings were the
primary reasons behind the year-over-year improvement.
For the reported quarter, royalties and license fees accounted
for approximately 50.8% of the total adjusted revenues with
product sales and research & development accounting for 42.0%
and 7.2%, respectively.
We note that in calendar year 2011, SurModics received a blow
Johnson & Johnson
) stopped manufacturing Cypher and Cypher Select Plus
sirolimus-eluting coronary stents on which SurModics received
royalties on sales of the product.
Following the Nov 2011 sale of the assets of its Pharmaceuticals
division to Germany's Evonik Industries AG, SurModics started
operating through two business units - Medical Devices and In
SurModics' adjusted revenues from the Medical Devices segment
came in at approximately $9.7 million, up 11.3%. Bulk of the
segmental revenues came from the sales of hydrophilic coatings,
which surged 10% from the year-ago period.
Revenues from the In Vitro Diagnostics unit increased 15% to
$4.0 million in the second quarter of fiscal 2013. This was the
tenth consecutive quarter in which segmental product revenues
surged. The quarter saw SurModics purchasing 105,097 shares
at a cost of $2.7 million
BIO-RAD LABS -A (BIO): Free Stock Analysis
CONCEPTUS INC (CPTS): Free Stock Analysis
JOHNSON & JOHNS (JNJ): Free Stock Analysis
SURMODICS (SRDX): Free Stock Analysis Report
To read this article on Zacks.com click here.
Fiscal 2013 Projection Backed
SurModics continues to expect fiscal 2013 revenues in the range
of $55-$58 million. Earnings on a reported basis are still
expected in the range of 86 cents-99 cents per share. The Zacks
Consensus Estimate for 2013 pegs earnings at 86 cents per share
on revenues of $58 million.
SurModics currently carries a Zacks Rank #3 (Hold). Players in
the Medical Devices market, of which SurModics is a part, such as
Bio-Rad Laboratories, Inc.
) appear to be more favorably placed. While Conceptus carries a
Zacks Rank #1 (Strong Buy), Bio-Rad Laboratories currently
possesses a Zacks Rank #2 (Buy).