This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

Synergetics Announces First Quarter Results

Synergetics USA, Inc. (NASDAQ: SURG), a medical device company that designs, manufactures, and markets innovative microsurgical devices for ophthalmic and neurosurgical applications, today reported its results for the first quarter ended October 31, 2010. The Company reported first quarter 2011 sales of $12.1 million and net income of $633,000, or $0.03 per diluted share.

“We are very pleased with our performance in the first quarter of fiscal 2011,” stated Dave Hable, President and CEO of Synergetics USA, Inc. “We faced a significant challenge to overcome a $444,000 shortfall in sales arising from the sale of the Omni ® product line. In addition, there was a modest headwind associated with lower sales of capital equipment due to the overall economic environment. This shortfall was overcome by a 6% growth in sales of our disposable products. In effect, we replaced relatively low margin capital equipment sales with higher margin disposable product sales. As a result, our sales mix improved and our disposable sales now constitute 83% of our total product sales. This also increased the number of units manufactured, causing a decline in our overhead rates.

“Our focus for fiscal 2011 continues to be building on sales and improving our margins. We are focused on our top four research and development projects that will expand our reach in the vitreoretinal and intracranial markets to drive organic growth. We stepped up our R&D programs in key areas and expect to introduce new products in the coming year. We also expect to begin shipping products to Alcon, Inc. in the third quarter of fiscal 2011. In addition, our strong financial condition is providing the foundation to aggressively pursue new business development opportunities that have the potential of expanding our markets for ophthalmic and neurosurgery products.”

First Quarter Results

First quarter 2011 sales were unchanged at $12.1 million compared with the first quarter of 2010. Although sales were unchanged, the mix of sales in the first quarter of fiscal 2011 was favorably impacted by increased sales of our higher margin disposable products that was offset by lower sales of neurosurgical products due to the transition of our direct neurosurgery sales to our marketing partners and lower sales of capital equipment.

  • Ophthalmic sales rose 6.0% to $8.0 million compared with the first quarter of fiscal 2010.
  • Neurosurgical sales (including sales to our marketing partners) declined 22.4% to $2.2 million in the first quarter of fiscal 2011 compared with $2.9 million in the same period in 2010. The decline in neurosurgery sales was the result of the transition to Codman & Shurtleff, Inc. (“Codman”) and Stryker under marketing partner agreements.
  • Total OEM sales rose 8.7% to $1.8 million compared with $1.7 million in the first quarter of fiscal 2010.

“Our top six product lines representing approximately 72% of total first quarter sales showed solid growth since last year and were up 16.9% compared with the first quarter of fiscal 2010,” continued Mr. Hable. “We are pleased with the solid organic growth from these key product groups, especially in our disposable product lines that carry higher margins and offer the opportunity for repeat purchases.

1 of 4

Select the service that is right for you!

COMPARE ALL SERVICES
Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
DOW 16,880.36 -31.75 -0.19%
S&P 500 1,970.07 +0.12 0.01%
NASDAQ 4,462.9020 +20.2040 0.45%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs