Good Year for CryoLife with Growth Across Businesses

CryoLife, Inc., a leading medical device and tissue processing company focused on cardiac and vascular surgery, has seen its revenue for the fourth quarter of 2013 increased 8 percent to a record of $35.5 million compared to $32.8 million for Q4 2012.

Background

Significant growth in Q4 over its equivalent period a year ago, reinforced the company’s full year 7 percent revenue growth, giving CryoLife a record $140.8 million compared to $131.7 million for the full year of 2012.

The income line netted out at $9.0 million for the quarter, a massive ramp from the $2.1 million of Q4 2012.

Full year net income of $16.2 million compared favourably with 2012’s $7.9 million.

Q4 product revenues were up 11 percent to $19.4 million (from $17.5 million) and up 13 percent to $76.2 million for the full year of 2013 (from $67.5 million).

By business area

It looks as though growth came from across the company’s business areas, with particular highlights being surgical sealant and hemostat revenues 8 percent up compared with Q4 2012 and 9 percent for the year. The company says increases in sales of BioGlue in both international and domestic markets underpinned the quarterly growth, coupled with annualised revenue growth coming from an increase in average sales prices in domestic markets, and an increase in PerClot revenues.

On the vascular side, CryoLife’s 2012 acquisition of Hemosphere seems to be bearing fruit, the company’s Q4 HeRO graft sales increasing 51 percent to $1.7 million ($1.1 million in Q4 2012). HeRO Graft revenues were $5.7 million for the full year of 2013 compared to $3.1 million for the full year of 2012.

Elsewhere, revascularization technologies revenues grew by double figure percentage, due to sales of laser consoles. And finally, the company’s Preservation Services business saw Q4 revenue growth from$15.2 million to $16.1 million, $64.5 for the full year compared to $63.6 million for the full year of 2012.

The Company’s 2014 financial guidance proposes a 4-7% revenue growth range, which means target revenue of between $146 million  and $150 million.

Company comments

Steven G. Anderson, president and chief executive officer, said, “We achieved positive fourth quarter results, with solid revenue growth for several of our key medical device products including BioGlue and the HeRO Graft. As we move into 2014, our focus will continue to be on driving growth for our higher margin medical device products. This includes the initiation of our PerClot IDE clinical trial, which will increase R&D spending for the year but position us for more robust growth and margin expansion once launched in the U.S.”

Source: CryoLife, Inc., PR Newswire

Full release here.

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