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(EXAC - Get Report)
develops, makes, markets, distributes and sells orthopedic implant devices, related surgical instrumentation and biologic materials to hospitals and physicians in the U.S. and 27 other countries. The company produces knee systems and other joint replacements. Exactech's revenue is derived primarily from sales of its knee- and hip-replacement systems; however, revenue from the worldwide distribution of biologic materials has increased as a percentage of the company's total revenue.
Exactech has been rated a buy since March 2007, primarily because of the company's strong financial performance, higher guidance and a currently favorable industry trend. In the third quarter of 2007, net sales increased 23% year over year to $30 million, largely because of the success of new products and continued growth from existing products.
Exactech performed well in both domestic and international markets on the revenue front; the company reported a 24% increase in revenue from the domestic market and a 21% increase in revenue from international markets. Management raised its fiscal 2007 guidance and now expects revenue between $120.5 million and $122.5 million, with earnings in the range of 78 cents to 79 cents a share.