Synergetics USA, Inc. (NASDAQ: SURG), a medical device company that designs, manufactures, and markets innovative microsurgical instruments for ophthalmic and neurosurgical applications, today announced growth in sales and net income for the second quarter ended January 31, 2011. The Company reported second quarter 2011 sales rose 2.0% to $13.3 million and net income increased 50.5% to $1.3 million, or $0.05 per diluted share, compared with the second quarter of fiscal 2010. “Synergetics’ earnings accelerated in the second quarter based on sales growth, higher margins and improved sales mix compared with last year, as sales of disposable products exceeded 80% of net sales,” stated Dave Hable, President and CEO of Synergetics USA, Inc. “We also reported record net income from operations (exclusive of one-time events) of $1.4 million ($0.06 per diluted share in our second fiscal quarter ended January 31, 2011 vs. $0.04 in our second fiscal quarter ended January 31, 2010) due to higher sales and improved gross profit relative to 2010. Our sales of disposable products were up 9.0% to $10.5 million. Sales to our OEM customers increased 38.1% from last year’s second fiscal quarter to $2.6 million. However, we again faced a significant challenge to overcome a $497,000 shortfall in sales arising from the sale of our Omni ® product line and a modest headwind associated with lower sales of capital equipment due to the overall economic environment. We are very enthusiastic about the growth in our ophthalmic disposable product sales since they represent future recurring sales opportunities. “Operating income rose 19.0% to $1.8 million (13.8% of net sales) and benefited from a 1.2 percentage point increase in our gross margin to 58.2%, increased sales of ophthalmic disposable products and continued expense controls. Our lean manufacturing initiatives have been a solid contributor to growing margins through direct labor cost savings and higher production yields. We remain focused on improving our margins and are expanding our lean initiatives to new product lines, enhancing our material requirements handling and implementing a new Enterprise Resource Planning System in the first quarter of fiscal 2012.