CryoLife, Inc. (CRY) Q2 2010 Earnings Call July 29, 2010 10:00 AM EST Executives Steve Anderson – President and CEO Ashley Lee – EVP, COO and CFO Analysts Matt Dolan – Roth Capital Partners Raymond Myers – The Benchmark Company Presentation Operator
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I will discuss the recent FDA clearance for the five-year shelf life for the CryoValve SG Human Pulmonary Heart Valve. I will discuss the significance of Medafor resuming its shipments of HemoStase to us that was announced on June 30 th. I will also discuss the continuing rollout of BioFoam sales in Europe and the beginning of the BioFoam clinical trial in the US. I will update you on the status of several SynerGraft tissue projects that are ongoing.At the end of my comments, Ashley will return to review our financial guidance for the rest of the year. At this time, Ashley will discuss this morning’s press release. Ashley Lee Thank you, Steve. To comply with the Safe Harbor requirements of the Private Securities Litigation Reform Act of 1995, I'd like to make the following statement. Comments made in this call, which look forward in time involve risk and uncertainties in our forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. The forward-looking statements includes statements made as to the company's or management’s intentions, hopes, beliefs, expectations or predications of the future. Additional information concerning risk and uncertainties that may impact these forward-looking statements is contained from time to time in the company's SEC filings including the Risk Factor section of our Form 10-K for the year ended December 31, 2009, our Form 10-Q for the quarter ended March 31, 2010, and our Form 10-Q for the quarter ended June 30, 2010, which we expect to file by the end of this week and in the press release that went out this morning a copy of which is contained on the Investor Relations portion of our website. This morning we reported our results for the second quarter and first half of 2010. We set all time second quarter and first half revenue records of $29.3 million and $59 million for the periods ended June 30, 2010, and reported our 14 th consecutive quarter of profitability. These revenue amounts represent increases of 4% and 8% compared to the corresponding periods in 2009. As of June 30, 2010 we had $41.4 million in cash, cash equivalents and restricted securities compared to $35.1 million at December 31, 2009. Of this $41.4 million, $2.4 million was received from the US Department of Defense as advance funding for the development of BioFoam Protein Hydrogel Technology and $5.3 million was designated as restricted primarily due to our financial covenant requirement under our credit agreement.
Net income for the second quarter of 2010 was $2.9 million or $0.10 per basic and fully diluted common share compared to $2.5 million or $0.09 per basic and fully diluted common share for the second quarter of ‘09. We recorded pretax charges in the second quarter of 2010 of approximately $420,000 in cost associated with our litigation with Medafor and recorded a $385,000 gain on evaluation of the derivative related to the investment in Medafor common stock.Net income for the first half of 2010 was $4.9 million or $0.17 per basic and fully diluted common share compared to $4.5 million or $0.16 per basic and fully diluted common share for the first half of ’09. We recorded pretax charges in the first half of 2010 of $729,000 in connection with the write-off of capitalized and legal expenses associated with our BioGlue intellectual property rights in Germany and approximately $834,000 in cost associated with our litigation with Medafor. Additionally, we recorded a $1.2 million gain on evaluation of the derivative related to the investment in Medafor common stock. Read the rest of this transcript for free on seekingalpha.com