Synergetics USA, Inc. (NASDAQ: SURG) (“Synergetics” or the “Company”), a medical device company that designs, manufactures, and markets innovative microsurgical instruments for ophthalmic and neurosurgical applications, today announced its results for the third quarter and nine months ended April 30, 2011. The Company reported third quarter 2011 sales of $14.7 million and net income of $1.6 million, or $0.07 per diluted share.
“Synergetics’ operating income jumped 20.6% to a record $2.5 million, or 16.8% of net sales, in the third quarter of fiscal 2011, compared to the third quarter of fiscal 2010 and benefited from higher sales, margins and improved product mix compared with the third quarter of last year,” stated Dave Hable, President and CEO of Synergetics USA, Inc. “The jump in our operating income this quarter also demonstrates the leverage we have achieved by utilizing our marketing partners to sell and distribute our neurosurgical products.
“Sales of disposable products continued to accelerate and exceeded 80% of total third quarter 2011 sales due to the contribution from new products and increased demand from both domestic and international customers. Sales of ophthalmic products rose 18.6% to $9.2 million and accounted for 62.8% of total third quarter sales. Demand for ophthalmic disposable products continues to grow and was a major driver in our improved sales since last year. In addition, OEM sales were up 29.4% to $2.8 million for the third quarter of 2011, compared to the third quarter of 2010, due primarily to increased shipments to Codman & Shurtleff, Inc. (“Codman”) and Stryker Corporation (“Stryker”).
“We expect to close out fiscal 2011 with record sales and operating income for the year. We believe our excellent results highlight our focus on building sales through targeted product development programs and pursuing new business development opportunities to expand our markets for ophthalmic and neurosurgery products. We also have made solid progress with our lean manufacturing initiatives that have reduced our costs and improved product quality. We remain focused on these key strategies and believe they will contribute to our continued sales and earnings growth,” continued Hable.
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