EATONTOWN, N.J., Nov. 6 /PRNewswire-FirstCall/ -- Osteotech, Inc.
(Nasdaq: OSTE) announced today that third quarter 2007 revenue increased
$2.3 million to $25.7 million from third quarter 2006 revenue of $23.4
million. Revenue from Osteotech's "core" DBM and Hybrid/Synthetic Segments
increased 28% to $17.6 million for the three months ended September 30,
2007 as compared to revenue of $13.7 million from the same segments for the
third quarter of 2006. Gross margin improved to 55% in the third quarter of
2007 as compared to 49% in the third quarter of 2006. Net income for the
three months ended September 30, 2007 was $1.6 million, or $.09 diluted
earnings per share, compared to net income of $.2 million, or $.01 diluted
earnings per share, for the three months ended September 30, 2006.
Sam Owusu-Akyaw, Osteotech's President and Chief Executive Officer,
stated, "We are very pleased with the results of the productivity
initiative started two and one-half years ago to turn the company around.
We are very proud of the discipline and focus the team has demonstrated to
drive the improvement in gross margin, the increase in our cash position,
and the return of the Company to profitability. The team is now focused to
deliver new and innovative products and to drive revenue growth."
Revenue for the nine months ended September 30, 2007 increased 5% to
$77.3 million from $73.8 million for the nine months ended September 30,
2006. Revenue increased 14% to $49.9 million in the DBM and
Hybrid/Synthetic Segments for the nine months ended September 30, 2007 as
compared to revenue from the same segments for the nine months ended
September 30, 2006 of $43.6 million. Gross margin improved to 51% for the
nine months ended September 30, 2007 as compared to 48% in the same
respective period in 2006. Net income for each of the nine months ended
September 30, 2007 and 2006 was $1.8 million. Diluted earnings per share
were $.10 and $.11 for the nine months ended September 30, 2007 and 2006,
respectively.
Mr. Owusu-Akyaw will host a conference call on November 6, 2007 at 9:00
a.m. Eastern Time to discuss third quarter financial results. You are
invited to listen to the conference call by dialing 1-706-643-1624. 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, November 20, 2007, by dialing 1-706-645-9291 and
indicating access code 22211822.
Osteotech, Inc., headquartered in Eatontown, New Jersey, is a global
leader in providing OsteoBiologic solutions to surgeons and patients for
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, 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 November 6, 2007 and the Company
does not intend to update this information.
OSTEOTECH, INC. AND SUBSIDIARIES
CONSOLIDATED SEGMENT REVENUE DETAIL
(dollars in thousands)
Three Months Nine Months
Ended September 30, Ended September 30,
2007 2006 2007 2006
(restated) (restated)
DBM $17,044 $13,379 $48,687 $42,701
Traditional Tissue 3,963 4,166 13,132 12,281
Spinal Allografts 2,292 3,159 8,301 10,768
Hybrid/Synthetic 528 325 1,169 938
Client Services 1,664 2,289 5,536 6,672
Other Product Lines 160 130 513 450
Revenue $25,651 $23,448 $77,338 $73,810
CONSOLIDATED STATEMENTS OF OPERATIONS
(dollars in thousands, except per share data)
Three Months Nine Months
Ended September 30, Ended September 30,
2007 2006 2007 2006
(restated) (restated)
Revenue $25,651 $23,448 $77,338 $73,810
Cost of revenue 11,443 11,994 38,023 38,117
Gross profit 14,208 11,454 39,315 35,693
Marketing, selling
and general
and administrative 11,051 9,751 33,341 29,856
Research and development 1,178 1,192 3,457 3,507
12,229 10,943 36,798 33,363
Operating income 1,979 511 2,517 2,330
Interest expense, net (157) (219) (459) (738)
Other (208) (131) ( 186) 359
Income before
income taxes 1,614 161 1,872 1,951
Income tax
provision (benefit) 10 (74) 61 105
Net Income $1,604 $235 $1,811 $1,846
Earnings per share:
Basic $.09 $.01 $.10 $.11
Diluted $.09 $.01 $.10 $.11
Shares used in computing
earnings per share:
Basic 17,573,134 17,295,314 17,494,807 17,281,703
Diluted 17,990,101 17,352,420 17,858,501 17,356,109
OSTEOTECH, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
(dollars in thousands)
September 30, December 31,
2007 2006
Assets
Cash and cash equivalents $20,840 $17,946
Accounts receivable, net 19,194 18,507
Deferred processing costs 32,038 29,067
Inventories 879 1,005
Prepaid expenses and other current assets 2,817 2,795
Total current assets 75,768 69,320
Property, plant and equipment, net 33,980 36,340
Other assets 6,061 7,373
$115,809 $113,033
Liabilities and Stockholders' Equity
Accounts payable and accrued liabilities $17,286 $15,861
Current maturities of capital lease obligation 786 727
Total current liabilities 18,072 16,588
Capital lease obligation 14,279 14,876
Other liabilities 5,789 7,716
Total liabilities 38,140 39,180
Stockholders' equity 77,669 73,853
$115,809 $113,033
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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