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Orthopedic implant devices maker Exactech’s (EXAC - Free Report) adjusted earnings of 18 cents a share for fourth-quarter fiscal 2011 largely missed the Zacks Consensus Estimate of 25 cents and were below the year-ago earnings of 23 cents a share. Profit skid roughly 33% year over year to $1.8 million (or 14 cents a share), impacted by lower domestic sales mix, foreign currency headwinds and lower profit in its French operation.

For the fiscal, adjusted earnings of 89 cents a share also came in well below the Zacks Consensus Estimate of 96 cents while exceeding the year-ago earnings of 86 cents. The adjusted earnings exclude legal and compliance costs associated with the company’s settlement with the Department of Justice.

The Gainesville-based company’s revenues inched up 2% year over year to $53.1 million in the fourth quarter, just missing the Zacks Consensus Estimate of $54 million. For the full year, Exactech raked in sales of $205.4 million, an 8% annualized increase, marginally missing the Zacks Consensus Estimate of $206 million.

Exactech noted that its U.S. revenues fell 2% to $34 million in the fourth quarter while international revenues surged 11% to $19.1 million. Domestic sales for the year grew 1% to $133 million while overseas revenues soared 24% to $72.4 million.

Revenues from the company’s larger knee implant business dipped 2% to $20.1 million in the fourth quarter. Extremities implant sales spiked 29% to $11 million. Revenues from hip implant franchise climbed 13% to $9.3 million while biologic and spine sales tumbled 21% to $5.9 million.

Gross margin edged down to 68.5% in the fourth quarter from 68.8% a year ago. Operating expenses rose roughly 4.5% year over year to $32.5 million in the quarter.

The company exited fiscal 2011 with cash and cash equivalent of around $4.7 million, up 18.5% year over year. Long-term debt declined 20% year over year to roughly $4.2 million.

Moving ahead, Exactech expects revenues for fiscal 2012 in the range of $215 million to $223 million. Earnings per share (as reported) for the year are expected in the band of 88 cents to 96 cents. The corresponding Zacks Consensus Estimates are $216 million and 93 cents, respectively.

For the first quarter, Exactech sees earnings per share in the range of 22 cents to 24 cents on revenues between $54 million and $57 million. Analysts polled by Zacks currently expect revenues of $55 million and earnings of 23 cents a share on an average for the first quarter.

Exactech develops and markets orthopedic implant devices. Its orthopedic products are utilized for the restoration of bones and joints that have degenerated due to diseases. Apart from the U.S. the company markets its products in more than 30 other markets globally.

Exactech competes with the likes of  Wright Medical (WMGI - Free Report) , Stryker (SYK - Free Report) , Johnson & Johnson (JNJ - Free Report) and Zimmer Holdings , some of whom are much larger in terms of size and resources.

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