EATONTOWN, N.J., May 1 /PRNewswire-FirstCall/ -- Osteotech, Inc.
(Nasdaq: OSTE), a leader in the emerging field of biological products for
regenerative healing, announced today that revenue for the first quarter of
2008 increased 10% to $27.6 million from $25.2 million for the first
quarter of 2007. Revenue from the Company's primary product lines, included
in the DBM and Hybrid/Synthetic segments, was $17.6 million for the three
months ended March 31, 2008, an increase of 12% over the prior year period.
Revenue from our other product lines was $10.0 million and $9.5 million in
the first quarter of 2008 and 2007, respectively.
Diluted earnings per share for the quarter ended March 31, 2008 was
$.05 on net income of $.8 million compared to a net loss of $.6 million, or
$.04 diluted loss per share, for the first quarter of 2007. The net loss in
the first quarter of 2007 included the costs associated with the settlement
of certain litigation and related legal fees of $1.1 million.
Gross margin improved to 52% in the first quarter compared to 49% in
the first quarter of the prior year. Operating expenses increased 5% for
the three months ended March 31, 2008 compared to the same period in 2007
due primarily to increased spending in research and development activities.
Sam Owusu-Akyaw, Osteotech's President and Chief Executive Officer,
stated, "We continue to be pleased with the execution of our strategic
initiatives. During the first quarter, we have continued to expand our
product pipeline, penetrate the foot and ankle market with our Plexur P(TM)
product and improve the effectiveness of our sales force. In the past two
months, we have received FDA clearance for our Plexur P(TM) product for use
in the spine and the Plexur M(TM) for use in orthopedics; renewed our
tissue recovery agreement with the Euro Atlantic Transplant Alliance;
entered into an agreement to distribute the Harvest(TM) Technologies
BMAC(TM) System; and engaged BioHorizons to distribute our bone
regeneration products in the international dental market. We are very
excited about our future."
Mr. Owusu-Akyaw will host a conference call on May 1, 2008 at 9:00 a.m.
Eastern Time to discuss first quarter results. You are invited to listen to
the conference call by dialing 706-643-1624. The conference will also be
simultaneously webcast at http://www.osteotech.com. Automated playback will
be available two hours after completion of the live call, through midnight,
Thursday, May 15th, by dialing 706-645-9291 and indicating access code
43861543.
Osteotech, Inc., headquartered in Eatontown, New Jersey, is a global
leader in providing OsteoBiologic solutions for regenerative medicine to
support surgeons and their patients in the repair of the musculoskeletal
system through the development of innovative therapy-driven products that
alleviate pain, promote biologic healing and restore function. For further
information regarding Osteotech, this press release or the conference call,
please go to Osteotech's website at http://www.osteotech.com.
Certain statements made throughout this press release that are not
historical facts contain forward-looking statements (as such are defined in
the Private Securities Litigation Reform Act of 1995) regarding the
Company's future plans, objectives and expected performance. Any such
forward-looking statements are based on assumptions that the Company
believes are reasonable, but are subject to a wide range of risks and
uncertainties and, therefore, there can be no assurance that actual results
may not differ materially from those expressed or implied by such
forward-looking statements. Factors that could cause actual results to
differ materially include, but are not limited to, the Company's ability to
develop and introduce new products, differences in anticipated and actual
product and service introduction dates, the ultimate success of those
products in the marketplace, the continued acceptance and growth of current
products and services, the impact of competitive products and services, the
availability of sufficient quantities of suitable donated tissue and the
success of cost control and margin improvement efforts. Certain of these
factors are detailed from time to time in the Company's periodic reports
filed with the Securities and Exchange Commission. All information in this
press release is as of May 1, 2008 and the Company does not intend to
update this information.
OSTEOTECH, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
(dollars in thousands, except per share data)
Three Months
Ended March 31,
2008 2007
Revenue $ 27,631 $ 25,217
Cost of revenue 13,389 12,900
Gross profit 14,242 12,317
Marketing, selling and general and
administrative 11,680 11,690
Research and development 1,760 1,164
13,440 12,854
Operating income (loss) 802 (537)
Interest expense, net (212) (150)
Other 278 136
Income (loss) before income taxes 868 (551)
Income tax provision 60 97
Net Income (loss) $808 $(648)
Earnings (loss) per share:
Basic $.05 $(.04)
Diluted $.05 $(.04)
Shares used in computing earnings (loss)
per share:
Basic 17,716,902 17,419,332
Diluted 17,906,646 17,419,332
CONSOLIDATED SEGMENT REVENUE DETAIL
(dollars in thousands)
Three Months
Ended March 31,
2008 2007
DBM $16,966 $15,482
Hybrid/Synthetic 644 233
Traditional Tissue 5,110 4,611
Spinal Allografts 2,250 2,788
Client Services 2,424 1,928
Other Product Lines 237 175
Revenue $27,631 $25,217
OSTEOTECH, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
(dollars in thousands)
March 31, December 31,
2008 2007
Assets
Cash and cash equivalents $ 21,264 $22,777
Accounts receivable, net 21,275 19,353
Deferred processing costs 28,929 30,850
Inventories 1,245 1,171
Other current assets 3,314 3,957
Total current assets 76,027 78,108
Property, plant and equipment, net 34,739 34,508
Other assets 10,654 7,735
$121,420 $120,351
Liabilities and Stockholders' Equity
Accounts payable and accrued expense $ 18,687 $19,364
Current maturities of capital lease obligation 828 807
Total current liabilities 19,515 20,171
Capital lease obligation 13,855 14,069
Other liabilities 7,129 7,083
Total liabilities 40,499 41,323
Stockholders' equity 80,921 79,028
$121,420 $120,351
SOURCE Osteotech, Inc.
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Related links:
http://www.osteotech.com
http://www.prnewswire.com/comp/668050.html /
CONTACT:
Mark H. Burroughs of Osteotech, Inc.,
+1-732-542-2800
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