Exactech reported revenue growth in the third quarter of 2014, but net income was down due to currency losses.
Here are 10 key points from the financial report:
1. Net income was down 6 percent to $3 million in the third quarter due to currency losses. There was a $923,000 negative foreign exchange swing for the third quarter in 2014 when compared with 2013.
2. Revenue hit $57.9 million in the third quarter — a 4 percent increase over the same period last year.
3. Business line revenue for the company was up in some areas and down in others. Here is the breakdown:
• Biologic and spine: down 4 percent to $5.4 million
• Knee implant: down 2 percent to $18.1 million
• Hip implant: up 4 percent to $10.2 million
• Extremity implant: up 23 percent to $18.6 million
• Other revenue: decreased 9 percent to $5.6 million
4. There was double-digit growth in the shoulder segment, boosting the extremity implant significantly as the highest growth line for the quarter.
5. There were sluggish knee sales in both the United States and Europe.
6. Overall sales in the United States were up 2 percent for the quarter, reaching $40 million. International sales were up 8 percent to $17.9 million.
7. United States sales represent 69 percent of the total sales while international sales are 31 percent of total sales.
8. Gross margins were at 71 percent for the quarter, which is the same as in 2013.
9. Total operating expenses were up 2 percent to $35.4 million. As a percentage of total sales, the total operating costs decreased 1 percent to 61 percent. This resulted in a 14 percent operating profit increase to $5.5 million.
10. Exactech updated 2014 full year revenue guidance, expecting to reach $247 million to $249 million by the end of the year.