) first quarter fiscal 2014 (ended Dec 31, 2013) adjusted
earnings of 21 cents per share beat the Zacks Consensus Estimate
by a penny. The first quarter fiscal 2014 earnings increased 17%
from the year-ago period. The year-over-year growth was primarily
attributable to higher revenues.
Revenues (on an adjusted basis) climbed 4.5% year over year to
$13.9 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
For the reported quarter, royalties and license fees accounted
for approximately 53.8% of total revenues with product sales and
research & development accounting for 38.9% and 7.3%,
SurModics' revenues from the Medical Devices segment came in
at approximately $10.5 million, flat year over year. Bulk of the
segmental revenues came from the sales of hydrophilic coatings,
which climbed 5% from the year-ago period on an adjusted basis.
Revenues from the In Vitro Diagnostics unit increased marginally
to $3.3 million in the first quarter of fiscal 2014. This was
the13th consecutive quarter in which segmental product revenues
surged. Revenues of the division benefited from strong sales of
microarray slides. The company expects the division to perform
better in the coming quarters of fiscal 2014.
SurModics exited the quarter with cash and investments of
$53.1 million with no debt. During the first quarter of fiscal
2014, SurModics bought back 380,011 shares at a cost of $8.9
million under the repurchase program worth $20 million cleared in
fiscal 2013. The repurchase program highlights the company's
commitment to create value for shareholders.
Fiscal 2014 Projection
SurModics continues to expect fiscal 2014 revenues in the
range of $58-$62 million, well above the revenues recorded in
fiscal 2013. The Zacks Consensus Estimate currently hints at
revenues of $60 million for fiscal 2014. The company continues to
forecast fiscal 2014 capital expenditure in the range of
SurModics currently carries a Zacks Rank #3 (Hold). Investors
interested in the medical industry can also consider stocks like
) carrying a Zacks Rank #1 (Strong Buy),
Baxter International Inc
), both carrying a Zacks Rank #2 (Buy).
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