|Three Months Ended|
|(Dollars in thousands, except per share data)||September 27,||September 28,||%||June 28,||%|
|Constant Currency Organic Sales Growth||5||%||8||%||6||%|
|GAAP Operating Income||$||17,002||$||2,127||NA||$||17,135||-1||%|
|GAAP Operating Income as % of Sales||10.1||%||1.3||%||10.0||%|
|Adjusted Operating Income*||$||22,012||$||18,664||18||%||$||22,192||-1||%|
|Adjusted Operating Income as % of Sales||13.1||%||11.6||%||13.0||%|
|GAAP Diluted EPS||$||0.44||$||(0.32||)||NA||$||0.39||13||%|
|Adjusted Diluted EPS*||$||0.57||$||0.46||24||%||$||0.56||2||%|
|Adjusted EBITDA as a % Sales||18.4||%||17.3||%||18.3||%|
|* Refer to Tables A, B and C at the end of this release for a reconciliation of GAAP to adjusted amounts.|
- Sales increased to $167.7 million, reflecting 5% constant currency organic growth over the comparable 2012 quarter.
- Cardiac/neuromodulation revenue increased 8% driven by sustained and deepening relations with OEM partners.
- Orthopaedic revenue increased 11% over the prior year and 22% after adjusting for the divestiture of certain non-core product lines in Switzerland at the beginning of 2013 and foreign currency exchange rate fluctuations. Share gains in both implants and cases and trays generated the significant sales growth.
- Electrochem revenue declined $1.9 million as a result of our increased pricing discipline and reduced government funding on military and environmental projects.
- GAAP Operating Income of $17.0 million increased $14.9 million versus the same period last year.
- Gross margins improved 170 basis points to 33.3% driven by higher volume and a better mix of product sales.
- Total operating expenses declined $10.0 million or 20% as a result of lower consolidation and optimization charges, partially offset by higher selling and marketing investment and increased performance based compensation.
- Adjusted Operating Income improved 18% to $22.0 million and increased 150 basis points to 13.1% of sales over the comparable 2012 quarter.
- Gross profit improvement flowed through to adjusted operating income.