) third quarter fiscal 2012 earnings from continued operations
(excluding special items) of 17 cents per share were above the
Zacks Consensus Estimate of 13 cents. The company earned 12 cents
per share on an adjusted basis in the year-ago quarter. Higher
year-over-year earnings were primarily attributable to increased
Adjusted revenues climbed 17.5% year over year to $13.7 million
in the reported quarter, edging past the Zacks Consensus Estimate
of $13 million. Revenues on a reported basis (including special
items) were up 7.4% to approximately $14 million in the third
quarter of fiscal 2012.
Revenues at SurModics climbed up due to increased sales from
vitro diagnostics and hydrophilic coatings. However, this was
partly offset by a decline in royalty revenues from
Johnson & Johnson
) pertaining to Cypher and Cypher Select Plus drug eluting stents.
Johnson & Johnson stopped manufacturing these products from the
end of calendar year 2011.
For the reported quarter, royalties and license fees accounted
for approximately 50.2% of total adjusted revenue with product
sales and research & development accounting for 41.7% and 8.1%,
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 $10.3 million, up 7.4%. Growth was attributable
to an increase in sales of hydrophilic coatings and newly launched
Reported revenues from the In Vitro Diagnostics unit increased
7.3% to $3.7 million.
In addition to announcing financial results, SurModics stated
that a $55 million share buyback program has been authorized by its
Board of Directors. We believe that the buyback program highlights
the company's commitment to create value for shareholders.
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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