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Haemonetics Reports in Line
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ShareHaemonetics Corporation (HAE - Analyst Report) recently reported fourth quarter and fiscal 2010 results. For the fourth quarter, earnings per share were 75 cents, in line with the Zacks Consensus Estimate and higher than the year-ago figure of 65 cents. For fiscal 2010, earnings per share were $2.85, compared with the Zacks Consensus Estimate of $2.83 and $2.45 in fiscal 2009.
Quarterly Results
Total sales in the fourth quarter increased 11.0% year over year to $169.1 million. Growth was witnessed across major business segments.
Plasma disposables revenues increased 6.0% year over year to $54.9 million. Platelet disposables revenues increased 13.3% year over year to $39.7 million. Red cell revenues declined 0.9% year over year to $12.7 million.
Surgical, OrthoPAT and Diagnostics revenues increased 7.9%, 9.2% and 41.1% year over year to $18.0 million, $10.0 million and $6.8 million, respectively.
The company’s software solutions registered a revenue growth of 4.3% year over year to $10.1 million. Equipment and other revenues increased 36.3% year over year to $16.9 million.
Gross margin declined 180 basis points (bps) year over year to 52.1%. Non-GAAP operating margin increased 160 bps year over year to 16.4%. Non-GAAP net margin increased 40 bps year over year to 11.5%. Both non-GAAP operating and net margins exclude restructuring and asset write-down expenses associated with the company’s business transformation in fiscal 2009 and 2010.
Fiscal Year Results
Total revenues in fiscal 2010 increased 8.0% year over year to $645.4 million. Excluding a favorable foreign currency translation, total revenues increased 6% year over year.
Plasma disposables revenues increased 14.9% year over year to $232.4 million. Platelet disposables revenues increased 5.3% year over year to $151.0 million. Red cell revenues declined 3.0% year over year to $48.0 million.
Geographically, the U.S. contributed 47% to total fiscal 2010 revenues and increased 8.8% year over year. International revenues accounted for the balance and increased 7.2% year over year.
Balance Sheet and Cash Flow
Haemonetics ended fiscal 2010 with cash and cash equivalents of roughly $141.6 million, a decline of 10.0% year over year. The company had an outstanding long-term debt of $4.6 million at the end of fiscal 2010. Haemonetics generated free cash flow of $75.1 million in fiscal 2010, an increase of 20.5% year over year.
Outlook
Haemonetics has provided guidance for fiscal 2011. For the year, the company expects a total revenue growth of 9-12%, adjusted operating income growth of 11-14%, and adjusted earnings per share between $3.15 and $3.25. In addition, Haemonetics expects gross margin and adjusted operating margin to increase 100 bps and 30 bps year over year, respectively. The tax rate should range between 30% and 31%. The company expects to generate $85 million of adjusted free cash flow.
Haemonetics is the market leader in developing and manufacturing blood collection and processing technology. Haemonetics operates in a very competitive environment, both for manual and automated systems, a market which includes big players like Baxter International Inc. (BAX - Analyst Report), Abbott Laboratories (ABT - Analyst Report) and Medtronic Inc. (MDT - Analyst Report).
Read the full analyst report on HAE
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