Surmodics Reports First Quarter Fiscal 2022 Results
Surmodics, Inc. (Nasdaq: SRDX) reported a first quarter revenue of $23.0 million, up 3% year-over-year, driven by a 4% increase in Medical Device revenue to $16.9 million. However, the company posted a GAAP EPS loss of $(0.20), worsening from $(0.02) a year ago, while non-GAAP EPS was $(0.13) compared to $0.02 previously. The firm reiterated its 2022 revenue guidance of $97 million to $101 million and projected a GAAP EPS loss of $(2.05) to $(1.55. A potential $30 million milestone from Abbott related to the SurVeil DCB is anticipated for 2022 or 2023.
- First quarter revenue increased by 3% year-over-year to $23.0 million.
- Medical Device revenue rose 4% to $16.9 million.
- First commercial sale of Pounce™ Arterial Thrombo-embolectomy System.
- Potential for a $30 million milestone payment during fiscal 2022 or 2023.
- GAAP EPS loss of $(0.20), compared to a loss of $(0.02) in the prior-year quarter.
- Non-GAAP EPS loss of $(0.13), down from earnings of $0.02 in the previous year.
- Operating cash usage of $7.0 million in the first quarter.
Summary of First Quarter and Recent Highlights
-
Revenue of
, an increase of$23.0 million 3% year-over-year -
GAAP EPS of
, non-GAAP EPS of$(0.20) $(0.13) - First commercial sale of Pounce™ Arterial Thrombo-embolectomy System
“I am pleased with our first quarter performance. We delivered revenue growth and made critical progress on our SurVeil™ drug-coated balloon PMA submission and early commercialization of our Sublime™ radial and Pounce™ arterial thrombectomy platforms,” said
First Quarter Fiscal 2022 Financial Results
Total revenue for the first quarter of fiscal 2022 was
Diluted GAAP earnings per share in the first quarter of fiscal 2022 was a loss per share of
As of
Company Reiterates Fiscal 2022 Guidance
Conference Call Today at
About
Safe Harbor for Forward-looking Statements
This press release, and disclosures related to it, contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Statements that are not historical or current facts, including statements regarding our fiscal 2022 strategic objectives and our ability to deliver on our fiscal 2022 financial and strategic objectives; our revenue and loss expectations for fiscal 2022 and beyond, including our fiscal 2022 financial guidance; expectations regarding the duration of factors impacting our royalty revenues and the return to growth of royalty revenues; expectations regarding medical device product revenue growth; expectations regarding design verification, process validation, and manufacturing validation related to the Company’s products; the potential for the commercial success or our products; expectations regarding actions related to the
Use of Non-GAAP Financial Information
In addition to reporting financial results in accordance with
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Three Months Ended |
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2021 |
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2020 |
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Revenue: |
|
|
|
|
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Product sales |
$ |
12,344 |
|
|
$ |
10,102 |
|
Royalties and license fees |
|
8,099 |
|
|
|
9,334 |
|
Research, development and other |
|
2,560 |
|
|
|
2,861 |
|
Total revenue |
|
23,003 |
|
|
|
22,297 |
|
Operating costs and expenses: |
|
|
|
|
|
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Product costs |
|
4,497 |
|
|
|
3,743 |
|
Research and development |
|
11,663 |
|
|
|
10,882 |
|
Selling, general and administrative |
|
9,195 |
|
|
|
7,023 |
|
Acquired intangible asset amortization |
|
1,089 |
|
|
|
556 |
|
Total operating costs and expenses |
|
26,444 |
|
|
|
22,204 |
|
Operating (loss) income |
|
(3,441 |
) |
|
|
93 |
|
Other expense |
|
(77 |
) |
|
|
(199 |
) |
Loss before income taxes |
|
(3,518 |
) |
|
|
(106 |
) |
Income tax benefit (provision) |
|
706 |
|
|
|
(168 |
) |
Net loss |
$ |
(2,812 |
) |
|
$ |
(274 |
) |
|
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Basic net loss per share |
$ |
(0.20 |
) |
|
$ |
(0.02 |
) |
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Diluted net loss per share |
$ |
(0.20 |
) |
|
$ |
(0.02 |
) |
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Weighted average number of shares outstanding: |
|
|
|
|
|
||
Basic |
|
13,878 |
|
|
|
13,668 |
|
Diluted |
|
13,878 |
|
|
|
13,668 |
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2021 |
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2021 |
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Assets |
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(Unaudited) |
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(See note) |
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Current Assets: |
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|
|
|
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Cash and cash equivalents |
|
$ |
26,650 |
|
|
$ |
31,153 |
|
Available-for-sale securities |
|
|
5,693 |
|
|
|
7,717 |
|
Accounts receivable, net |
|
|
8,010 |
|
|
|
9,169 |
|
Contract assets — royalties and license fees |
|
|
6,668 |
|
|
|
7,091 |
|
Inventories, net |
|
|
8,290 |
|
|
|
6,760 |
|
Prepaids and other |
|
|
9,605 |
|
|
|
8,365 |
|
Total Current Assets |
|
|
64,916 |
|
|
|
70,255 |
|
Property and equipment, net |
|
|
29,319 |
|
|
|
30,090 |
|
Available-for-sale securities |
|
|
— |
|
|
|
2,002 |
|
Deferred tax assets |
|
|
6,372 |
|
|
|
5,867 |
|
Intangible assets, net |
|
|
35,238 |
|
|
|
37,054 |
|
|
|
|
44,900 |
|
|
|
45,606 |
|
Other assets |
|
|
4,121 |
|
|
|
3,718 |
|
Total Assets |
|
$ |
184,866 |
|
|
$ |
194,592 |
|
Liabilities and Stockholders’ Equity |
|
|
|
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Current Liabilities: |
|
|
|
|
|
|
|
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Short-term borrowings |
|
|
10,000 |
|
|
|
10,000 |
|
Deferred revenue |
|
|
4,430 |
|
|
|
4,647 |
|
Other current liabilities |
|
|
11,213 |
|
|
|
15,168 |
|
Total Current Liabilities |
|
|
25,643 |
|
|
|
29,815 |
|
Deferred revenue |
|
|
9,292 |
|
|
|
10,301 |
|
Other long-term liabilities |
|
|
13,260 |
|
|
|
14,391 |
|
Total Liabilities |
|
|
48,195 |
|
|
|
54,507 |
|
Total Stockholders’ Equity |
|
|
136,671 |
|
|
|
140,085 |
|
Total Liabilities and Stockholders’ Equity |
|
$ |
184,866 |
|
|
$ |
194,592 |
|
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Note: Derived from audited financial statements as of the date indicated. |
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(Unaudited) |
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Three Months Ended |
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2021 |
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2020 |
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Revenue: |
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% of Total |
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% of Total |
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% Change |
|
|||||||
Medical Device |
|
$ |
16,908 |
|
|
|
73.5 |
% |
|
$ |
16,196 |
|
72.6 |
% |
|
4.4 |
% |
|
In |
|
|
6,095 |
|
|
|
26.5 |
% |
|
|
6,101 |
|
27.4 |
% |
|
(0.1 |
)% |
|
Total revenue |
|
$ |
23,003 |
|
|
|
|
$ |
22,297 |
|
|
|
3.2 |
% |
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Three Months Ended |
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2021 |
|
2020 |
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Operating (loss) income: |
|
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|
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|
|
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|||||||
Medical Device |
|
$ |
(3,792 |
) |
|
$ |
(593 |
) |
|
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|
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|
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In |
|
|
3,155 |
|
|
|
3,220 |
|
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Total segment operating (loss) income |
|
|
(637 |
) |
|
|
2,627 |
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Corporate |
|
|
(2,804 |
) |
|
|
(2,534 |
) |
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Total operating (loss) income |
|
$ |
(3,441 |
) |
|
$ |
93 |
|
|
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Three Months Ended |
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|
2021 |
|
2020 |
||||
EBITDA and Adjusted EBITDA |
|
|
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Net loss |
$ |
(2,812 |
) |
|
$ |
(274 |
) |
Income tax (benefit) provision |
|
(706 |
) |
|
|
168 |
|
Depreciation and amortization |
|
2,376 |
|
|
|
1,860 |
|
Investment income, net |
|
(26 |
) |
|
|
(41 |
) |
Interest expense |
|
136 |
|
|
|
60 |
|
EBITDA |
|
(1,032 |
) |
|
|
1,773 |
|
|
|
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Adjustments: |
|
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None |
|
— |
|
|
|
— |
|
Adjusted EBITDA |
$ |
(1,032 |
) |
|
$ |
1,773 |
|
|
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|
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Cash Flows from Operations |
|
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Net cash used in operating activities |
$ |
(7,026 |
) |
|
$ |
(4,270 |
) |
|
|
|
|
|
|
Guidance Reconciliation: Estimated Non-GAAP Diluted Earnings Per Share
|
|||||||
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Fiscal 2022 Full-Year Estimate |
||||||
|
Low |
|
High |
||||
GAAP diluted EPS |
$ |
(2.05 |
) |
|
$ |
(1.55 |
) |
Amortization of acquired intangibles per diluted share (1) |
|
0.30 |
|
|
|
0.30 |
|
Non-GAAP diluted EPS |
$ |
(1.75 |
) |
|
$ |
(1.25 |
) |
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For the Three Months Ended |
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Total
|
|
Operating
|
|
Operating
|
|
Loss
|
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Net
|
|
Diluted
|
|
Effective
|
|||||||||||||
GAAP |
|
$ |
23,003 |
|
$ |
(3,441 |
) |
|
|
(15.0 |
)% |
|
$ |
(3,518 |
) |
|
$ |
(2,812 |
) |
|
$ |
(0.20 |
) |
|
|
20.1 |
% |
Adjustments: |
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|
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|
|
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Amortization of acquired intangible assets (1) |
|
|
— |
|
|
1,089 |
|
|
|
4.8 |
% |
|
|
1,089 |
|
|
|
990 |
|
|
|
0.07 |
|
|
|
|
|
Non-GAAP |
|
$ |
23,003 |
|
$ |
(2,352 |
) |
|
|
(10.2 |
)% |
|
$ |
(2,429 |
) |
|
$ |
(1,822 |
) |
|
$ |
(0.13 |
) |
|
|
25.0 |
% |
|
|
For the Three Months Ended |
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|
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Total
|
|
Operating
|
|
Operating
|
|
(Loss)
|
|
Net
(2) |
|
Diluted
|
|
Effective
|
|||||||||||||
GAAP |
|
$ |
22,297 |
|
$ |
93 |
|
|
|
0.4 |
% |
|
$ |
(106 |
) |
|
$ |
(274 |
) |
|
$ |
(0.02 |
) |
|
|
(158.5 |
)% |
Adjustments: |
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|
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|
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|
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|
|
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|||||
Amortization of acquired intangible assets (1) |
|
|
— |
|
|
556 |
|
|
|
2.5 |
% |
|
|
556 |
|
|
|
526 |
|
|
|
0.04 |
|
|
|
|
|
Non-GAAP |
|
$ |
22,297 |
|
$ |
649 |
|
|
|
2.9 |
% |
|
$ |
450 |
|
|
$ |
252 |
|
|
$ |
0.02 |
|
|
|
44.0 |
% |
(1) |
Amortization of business acquisition-related intangible assets and associated tax impact. A significant portion of the business acquisition-related amortization is not tax deductible. |
|
|
(2) |
Net (loss) income includes the effect of the above adjustments on the income tax benefit (provision), taking into account deferred taxes and non-deductible items. Income tax impacts were estimated using the applicable statutory rate ( |
|
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(3) |
Potentially dilutive common shares resulting from dilutive common stock options and non-vested stock relating to restricted stock awards and restricted stock units have been excluded from the calculation of GAAP net loss per share as their effect was antidilutive for three months ended |
View source version on businesswire.com: https://www.businesswire.com/news/home/20220203005112/en/
ir@surmodics.com
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