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Vascular Solutions, Inc. (Nasdaq: VASC) today reported financial results for the fourth quarter and year ended December 31, 2010. Net revenue for the fourth quarter was $20.9 million, an increase of 15% from the fourth quarter of 2009, and a sequential increase of 5% from the third quarter of 2010. For the year ended December 31, 2010, net revenue increased by 15% to a record $78.4 million, representing the seventh consecutive year of greater than 10% revenue growth for Vascular Solutions.
Operating income for the fourth quarter was $3.4 million, a 54% increase over the fourth quarter of 2009. Net income of $15.0 million ($0.87 per diluted share) in the fourth quarter included $12.9 million ($0.75 per diluted share) of income tax benefit primarily resulting from the recognition of net operating loss carryforwards as a deferred tax asset. Not including the income tax benefit, earnings per share increased 30% to $0.12 per diluted share in the fourth quarter of 2010 from the fourth quarter of 2009. Both net revenue and net income for the fourth quarter were within guidance previously provided by the company.
Gross margin across all product lines was 65.8% in the fourth quarter of 2010, up from 64.9% in the fourth quarter of 2009 as the result of a continued shift in selling mix to higher margin products.
Commenting on the results, Vascular Solutions’ Chief Executive Officer Howard Root stated: “The fourth quarter completed another very successful year for Vascular Solutions. The clinical and financial success of our internal product development system was evident in our GuideLiner® catheter, which surpassed all our expectations in 2010. The benefit of our overall business plan was evident in our ability to continue to post double-digit percentage sales growth while several of our products reached the mature stage. And the benefit of our strong financial position was evident in the three accretive cash acquisitions that we completed over the last 12 months. With a full pipeline of internally-generated new products in development and additional acquisition and product distribution candidates in evaluation, we are very optimistic about our ability to continue with our consistent sales growth and success in 2011 and beyond.”