CONMED Corporation (CONMED), a US-based medical devices company, has reported net sales of $164.1 million for the first quarter of 2009, up 9.1%, compared with the net sales of $190.8 million in the year-ago quarter. It has also reported net income of $4.49 million or $0.15 per diluted share, for the first quarter of 2009, compared with the net income of $10.25 million or $0.35 per diluted share, in the year-ago quarter.
Looking ahead for second quarter of 2009, Amgen CONMED forecasts revenues of $162 – $167 million and non-GAAP diluted earnings per share of $0.14 – $0.19. Based on the results of the first quarter and forecast for the remainder of 2009, the company has revised its 2009 total year forecast such that revenues are estimated to be $680 – $690 million and non-GAAP diluted earnings per share of $0.92 – $1.02.
“The Company’s first quarter financial results were affected by adverse foreign currency exchange rates and reduced capital equipment sales as a result of reduced capital spending and cash conservation by hospitals. Single-use device sales, which represent approximately 75 percent of our business, were relatively consistent with last year’s revenues in constant currency, leading us to conclude that surgical procedure volumes while not growing as expected, have remained stable even in the face of economic volatility. Although the extent of the hospital capital spending reduction in the first quarter was more extensive than we had previously forecasted, CONMED remains confident in the long-term prospects of our capital equipment business because these are product purchases that cannot be deferred for too long a period of time. Surgical video systems, powered instrument handpieces and electrosurgical generators are susceptible to wear and tear and they must be replaced in due course for the efficient conduct of surgery,” commented Joseph J. Corasanti, president and chief executive officer.
Corasanti added, “We are confident that our surgical devices and systems meet the real needs of our customers and that growth in the Company’s capital product sales will return. Based on numerous discussions with current and prospective customers we believe that the second half of 2009 should show improvement over the first half of 2009 and that 2010’s financial performance should be significantly better than that of 2009 due to the expected stabilization of the economy, introduction of new products, and the positive effects of the manufacturing restructuring plan. Therefore, as the economy stabilizes, we believe we will be well-positioned to leverage the Company’s strengths for the benefit of our customers and shareholders.”