) second quarter fiscal 2012 (ended March 31, 2012) earnings from
continued operations (excluding special items) of 14 cents per
share beat the Zacks Consensus Estimate of 12 cents. The company
earned 11 cents per share on an adjusted basis in the year-ago
quarter. Higher year over year earnings were primarily attributable
to increased adjusted revenues.
Adjusted revenues climbed 4.2% year over year to $12.3 million
in the reported quarter, edging past the Zacks Consensus Estimate
of $12 million. Revenues on a reported basis (including special
items) were, however, down 8.3% to approximately $12.2 million in
the second quarter of fiscal 2012.
Reported revenues at SurModics were hurt primarily by the
decline in royalty revenues from
Johnson & Johnson
) pertaining to Cypher and Cypher Select Plus drug eluting stents.
Johnson & Johnson stopped manufacturing the products from the
end of calendar 2011.
For the reported quarter, royalties and license fees accounted
for approximately 51.8% of total adjusted revenue with product
sales and research & development accounting for 41.2% and 7.0%,
Following the November 2011 sale of the assets of its
Pharmaceuticals division to Germany's Evonik Industries AG,
SurModics currently operates through two business units: Medical
Devices and In Vitro Diagnostics.
SurModics' reported revenues from the Medical Devices segment
were approximately $8.8 million, down 12.3%. The reduction was
primarily attributable to the decline in royalty revenues from the
sale of Cordis Cypher and Cypher Select Plus stents.
Reported revenues from the In Vitro Diagnostics unit increased
3% to $3.5 million. The company continues to expect fiscal 2012
revenues in the range of $47- $51 million.
In addition to announcing financial results, SurModics stated
that a $50 million share buyback program has been cleared by its
Board of Directors. The $50 million buyback program, devoid of a
fixed expiration date, is in addition to the $5.3 million remaining
under the share buyback program of 2007.
We currently have a Neutral recommendation on SurModics. The
stock carries a Zacks #3 Rank (short-term Hold rating).
JOHNSON & JOHNS (JNJ): Free Stock Analysis
SURMODICS (SRDX): Free Stock Analysis Report
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