EATONTOWN, N.J., July 31 /PRNewswire-FirstCall/ -- Osteotech, Inc.
(Nasdaq: OSTE), a leader in the emerging field of biologic products for
regenerative healing, reported today that net income for the three months
ended June 30, 2008 was $1.7 million, or $.10 diluted earnings per share
compared to net income of $.9 million, or $.05 diluted earnings per share,
for the second quarter of 2007. Revenue for the three months ended June 30,
2008 increased 4% to $27.6 million from $26.5 million for the same period
in the prior year. Gross margin was 53% and 48% in the second quarter of
2008 and 2007, respectively. Net income for the three months ended June 30,
2008 included $1.0 million associated with the settlement of certain
litigation.
Net income for the six months ended June 30, 2008 was $2.6 million, or
$.14 diluted earnings per share, compared to net income of $.2 million, or
$.01 diluted earning per share, for the same period in the prior year.
Revenue for the six months ended June 30, 2008 increased 7% to $55.2
million from $51.7 million for the six months ended June 30, 2007. Gross
margin was 52% for the first half of 2008 compared to 49% for the first
half of 2007. Net income for the first half of 2007 was negatively impacted
by first quarter costs of $1.1 million related to the settlement of certain
litigation.
Sam Owusu-Akyaw, Osteotech's President and Chief Executive Officer,
stated, "Our financial performance continues to demonstrate our ability to
effectively manage the business. The key initiative for 2008 is
distribution effectiveness. The international sales team is taking shape
and the domestic sales initiatives, including the focus on master sales
agencies, are moving forward."
Mr. Owusu-Akyaw will host a conference call on July 31, 2008 at 9:00
a.m. Eastern Time to discuss second 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, August 14, 2008, by dialing 706-645-9291 and
indicating access code 52377240.
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 July 31, 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 Six Months
Ended June 30, Ended June 30,
2008 2007 2008 2007
Revenue $27,553 $26,470 $55,184 $51,687
Cost of revenue 13,051 13,680 26,440 26,580
Gross profit 14,502 12,790 28,744 25,107
Marketing, selling and
general and
administrative expenses 11,323 10,434 23,003 22,124
Research and development
expenses 1,774 1,281 3,534 2,445
13,097 11,715 26,537 24,569
Operating income 1,405 1,075 2,207 538
Interest expense, net (274) (152) (486) (302)
Other 945 (114) 1,223 22
Income before income taxes 2,076 809 2,944 258
Income tax provision
(benefit) 330 (46) 390 51
Net Income $1,746 $855 $ 2,554 $207
Earnings per share:
Basic $.10 $.05 $.14 $.01
Diluted $.10 $.05 $.14 $.01
Shares used in computing
earnings per share:
Basic 17,771,799 17,466,368 17,744,656 17,442,969
Diluted 17,919,695 18,009,774 17,904,128 17,912,380
CONSOLIDATED SEGMENT REVENUE DETAIL
(dollars in thousands)
Three Months Six Month
Ended June 30, Ended June 30,
2008 2007 2008 2007
DBM $16,575 $16,161 $33,541 $31,643
Hybrid/Synthetic 727 408 1,371 641
Traditional Tissue 5,250 4,558 10,360 9,169
Spinal Allografts 2,286 3,221 4,536 6,009
Client Services 2,397 1,944 4,821 3,872
Other Product Lines 318 178 555 353
Revenue $27,553 $26,470 $55,184 $51,687
OSTEOTECH, INC. and Subsidiaries
CONDENSED CONSOLIDATED BALANCE SHEET
(dollars in thousands)
June 30, December 31,
2008 2007
Assets
Cash and cash equivalents $19,128 $22,777
Accounts receivable, net 23,177 19,353
Deferred processing costs 29,985 30,850
Inventories 1,314 1,171
Prepaid expenses and other current assets 3,971 3,957
Total current assets 77,575 78,108
Property, plant and equipment, net 35,340 34,508
Other assets 12,291 7,735
$125,206 $120,351
Liabilities and Stockholders' Equity
Accounts payable and accrued liabilities $20,554 $19,364
Current maturities of capital lease obligation 850 807
Total current liabilities 21,404 20,171
Capital lease obligation 13,634 14,069
Other liabilities 7,137 7,083
Total liabilities 42,175 41,323
Stockholders' equity 83,031 79,028
$125,206 $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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