Kensey Nash announces 4Q, FY Results

NEW YORK, Aug 26, 2008 (ASCRIBE NEWS via COMTEX) -- KNSY | Quote | Chart | News | PowerRating -- Kensey Nash reported the results for its fourth quarter and fiscal year ended June 30.

In a release, the company stated:

Fourth Quarter Results

- Revenues: Sales and Royalties. Total revenues increased 29% to a record level of $22.0 million in the company's fourth fiscal quarter ended June 30, from $17.0 million in the comparable prior year period.

- Net sales increased 42% to $15.0 million from $10.5 million in the fourth quarter of fiscal 2007. Net sales of biomaterials products increased 37% to $13.3 million from $9.7 million in the comparable prior year period due to strong sales in both orthopaedic and cardiovascular product lines. Orthopaedic sales increased 39% to $8.4 million from $6.0 million in the prior year period, primarily due to increased sales of products in the company's sports medicine and spine product portfolios. Cardiovascular sales of $4.2 million, consisting primarily of sales of vascular closure product components to St. Jude Medical, increased 29%, from $3.2 million in the prior year period.

- Sales of endovascular products during the quarter increased 103% to $1.6 million from $806,000 in the prior year period. Endovascular sales included direct sales to customers for the months of April and May, as well as sales of product to Spectranetics in June, after the company's completion of the sale of its endovascular business.

- Royalty income increased 8% to $7.0 million compared to $6.5 million in the comparable prior year period. Royalty income included $5.7 million in Angio-Seal royalties and $1.2 million in royalties from Orthovita. Angio-Seal royalties were up 5% from the comparable quarter of the prior fiscal year due to higher than expected end-user sales while Orthovita royalties were up 21% primarily due to the full launch of the new VITOSS Bioactive Foam product during the quarter and continued strong end-user sales by Orthovita in the marketplace.

"We are extremely pleased with our fourth quarter and fiscal 2008 results as we exceeded our previous expectations. Our orthopaedic biomaterials sales were excellent in the quarter and throughout the fiscal year. Angio-Seal royalties were better than expected in the quarter and the Orthovita royalties continued strong, increasing 21% in the quarter and 19% in the fiscal year. Additionally, we closed the sale of our endovascular business to Spectranetics during the quarter and are looking forward to a successful partnership with them," said Joe Kaufmann, President and CEO of the company.

Fiscal Year 2008 Results

- Revenues: Sales and Royalties. Total revenues for the fiscal year ended June 30, were $79.8 million, up 15% from total revenues of $69.5 million for the fiscal year ended June 30, 2007.

- Net sales increased 20% to $53.8 million from $44.9 million recorded in the prior fiscal year. Net sales of biomaterials products increased 16% to $47.5 million from $41.1 million, primarily due to orthopaedic product sales, which increased 35% to $29.4 million from $21.8 million. Sports medicine and spine product sales increased, 27% and 47%, respectively, over the prior fiscal year period. Sports medicine product sales were led by a 27% increase in product sales to the company's most significant customer in this market. The increase in spine product sales included $2.0 million of new product sales resulting from the company's MacroPore Biosurgery asset acquisition, completed in May 2007. Sales to Orthovita increased $1.9 million due to strong end user sales of existing products and initial shipments for the new VITOSS Bioactive Foam product line launched by Orthovita in the second calendar quarter of 2008. Sales of vascular closure product components to St. Jude Medical decreased $1.8 million, or 10%, from the prior year period, as anticipated and previously disclosed.

- Sales of endovascular products during the 2008 fiscal year increased 64% to $6.2 million from $3.8 million in the prior year. Endovascular sales included direct sales to customers through the month of May, as well as sales of product to Spectranetics during the month of June, after the company's completion of the sale of its endovascular business.

- Royalty income for the fiscal year increased 6% to $26.0 million compared to $24.6 million in the prior year. Royalty income included $21.4 million in Angio-Seal royalties, up 3% from the prior year, and $4.4 million in royalties from Orthovita, up 19% from the prior year. Orthovita royalty growth was primarily due to the sales and marketing efforts of Orthovita, increase in its sales force and the full launch of the new VITOSS Bioactive Foam product in the fourth fiscal quarter.

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