SurModics Inc.’s (SRDX) fourth quarter fiscal 2011 earnings (excluding special items) of 6 cents per share edged past the Zacks Consensus Estimate by a penny. The company suffered an adjusted loss of 5 cents per share a year-ago quarter. The impressive performance in the final quarter of fiscal 2011 (ended September 30, 2011) was primarily attributable to higher revenues.
Quarter in Details
Adjusted revenues climbed 10.3% year over year to $17.1 million in the reported quarter, beating the Zacks Consensus Estimate of $17 million by a whisker. Revenues on a reported basis stood at $17.2 million, up 11% year over year, but down 4.5% sequentially.
For the reported quarter, royalties and license fees accounted for approximately 45.3% of total reported revenues with product sales and research & development accounting for 37.8% and 16.5% respectively
SurModics reported financial results for the final quarter of fiscal 2011 through three business units: Medical Devices, Pharmaceuticals and In Vitro Diagnostics.
SurModics’ reported revenues from the Medical Devices segment were $10.2 million, up 7% sequentially. Reported revenues from the Pharmaceuticals division fell 35% sequentially to $3.3 million. Reported revenues from the In Vitro Diagnostics unit jumped 7% sequentially to $3.7 million.
However, in early November 2011, Surmodics announced that it has entered into a definitive agreement to sell the assets of the Pharmaceuticals division to Germany’s Evonik Industries AG for $30 million cash. The deal, expected to be completed by the end of this month, will enable the company to focus extensively on its Medical Device and In Vitro Diagnostics units and also strengthen its balance sheet. Consequently, from the next quarter SurModics is expected to report through two divisions.
Annual results
For fiscal 2011 SurModics earned 32 cents per share on an adjusted basis, beating the Zacks Consensus Estimate by 4 cents. The company earned 38 cents per share in fiscal 2010.
Adjusted revenues for fiscal 2011 fell approximately 8% year over year to $67.8 million in the reported quarter, edging past the Zacks Consensus Estimate of $67million. Revenues in fiscal 2010 were boosted by the presence of royalty revenues from Cypher stent sales, marketed by the Cordis division of Johnson & Johnson (JNJ). However, Johnson & Johnson has decided to stop manufacturing the product by the end of calendar 2011.
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