Surmodics Reports Second Quarter Fiscal 2022 Results
Surmodics, Inc. (Nasdaq: SRDX) reported second-quarter fiscal 2022 results, revealing total revenue of $26.1 million, a 13% sequential increase, but down from $35 million in the prior-year quarter. Medical Device revenue declined to $18.5 million from $27.9 million year-over-year. In Vitro Diagnostics achieved a record $7.7 million. GAAP EPS was a loss of $(0.29) compared to $0.58 earnings last year. The company raised its fiscal 2022 revenue guidance to $98-$101 million and adjusted EPS guidance to a loss of $(1.70)-(1.35).
- Revenue guidance for fiscal 2022 increased to $98-$101 million.
- Record In Vitro Diagnostics revenue of $7.7 million.
- Secured new customer accounts for key medical platforms.
- GAAP EPS loss of $(0.29) compared to earnings of $0.58 in the prior-year quarter.
- Medical Device revenue fell to $18.5 million from $27.9 million year-over-year.
Summary of Second Quarter and Recent Highlights
-
Revenue of
, a sequential increase of$26.1 million 13% -
Record In Vitro Diagnostics revenue of$7.7 million -
GAAP EPS of
, non-GAAP EPS of$(0.29) $(0.22) -
Double-digit product sales growth year-over-year from both Medical Device and
In Vitro Diagnostics businesses
“In our second quarter, we continued to grow our customer pipeline and secure new customer accounts for our Sublime™ radial and Pounce™ arterial thrombectomy platforms, further validating our commercialization strategy,” said
Second Quarter Fiscal 2022 Financial Results
Total revenue for the second quarter of fiscal 2022 was
Diluted GAAP earnings per share in the second quarter of fiscal 2022 was a loss per share of
As of
Updated Fiscal 2022 Guidance
As a result of our operating performance for the first six months of fiscal 2022, we are raising our full-year revenue and EPS guidance for fiscal 2022. We are increasing our fiscal 2022 revenue expectations to a range of
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 full-year fiscal 2022 income tax benefit; expectations regarding revenue growth; expectations regarding actions related to the
Use of Non-GAAP Financial Information
In addition to reporting financial results in accordance with
Condensed Consolidated Statements of Operations (in thousands, except per share data) (Unaudited) |
||||||||||||||||
|
Three Months Ended |
|
Six Months Ended |
|||||||||||||
|
|
|
|
|||||||||||||
|
2022 |
|
2021 |
|
2022 |
|
2021 |
|||||||||
|
|
|
|
|
|
|
|
|||||||||
Revenue: |
|
|
|
|
|
|
|
|||||||||
Product sales |
$ |
13,964 |
|
|
$ |
11,783 |
|
|
$ |
26,308 |
|
|
$ |
21,885 |
|
|
Royalties and license fees |
|
9,844 |
|
|
|
20,052 |
|
|
|
17,943 |
|
|
|
29,386 |
|
|
Research, development and other |
|
2,298 |
|
|
|
3,160 |
|
|
|
4,858 |
|
|
|
6,021 |
|
|
Total revenue |
|
26,106 |
|
|
|
34,995 |
|
|
|
49,109 |
|
|
|
57,292 |
|
|
Operating costs and expenses: |
|
|
|
|
|
|
|
|||||||||
Product costs |
|
5,107 |
|
|
|
4,170 |
|
|
|
9,604 |
|
|
|
7,913 |
|
|
Research and development |
|
13,712 |
|
|
|
12,875 |
|
|
|
25,375 |
|
|
|
23,757 |
|
|
Selling, general and administrative |
|
11,116 |
|
|
|
7,907 |
|
|
|
20,311 |
|
|
|
14,930 |
|
|
Acquired intangible asset amortization |
|
1,071 |
|
|
|
560 |
|
|
|
2,160 |
|
|
|
1,116 |
|
|
Total operating costs and expenses |
|
31,006 |
|
|
|
25,512 |
|
|
|
57,450 |
|
|
|
47,716 |
|
|
Operating (loss) income |
|
(4,900 |
) |
|
|
9,483 |
|
|
|
(8,341 |
) |
|
|
9,576 |
|
|
Other (expense) income |
|
(102 |
) |
|
|
42 |
|
|
|
(179 |
) |
|
|
(157 |
) |
|
(Loss) income before income taxes |
|
(5,002 |
) |
|
|
9,525 |
|
|
|
(8,520 |
) |
|
|
9,419 |
|
|
Income tax benefit (provision) |
|
919 |
|
|
|
(1,438 |
) |
|
|
1,625 |
|
|
|
(1,606 |
) |
|
Net (loss) income |
$ |
(4,083 |
) |
|
$ |
8,087 |
|
|
$ |
(6,895 |
) |
|
$ |
7,813 |
|
|
|
|
|
|
|
|
|
|
|||||||||
Basic net (loss) income per share |
$ |
(0.29 |
) |
|
$ |
0.59 |
|
|
$ |
(0.50 |
) |
|
$ |
0.57 |
|
|
|
|
|
|
|
|
|
|
|||||||||
Diluted net (loss) income per share |
$ |
(0.29 |
) |
|
$ |
0.58 |
|
|
$ |
(0.50 |
) |
|
$ |
0.56 |
|
|
|
|
|
|
|
|
|
|
|||||||||
Weighted average number of shares outstanding: |
|
|
|
|
|
|
|
|||||||||
Basic |
|
13,917 |
|
|
|
13,746 |
|
|
|
13,896 |
|
|
|
13,699 |
|
|
Diluted |
|
13,917 |
|
|
|
13,981 |
|
|
|
13,896 |
|
|
|
13,915 |
|
|
Condensed Consolidated Balance Sheets (in thousands) |
||||||
|
|
|
|
|
||
|
|
2022 |
|
2021 |
||
Assets |
|
(Unaudited) |
|
(See note) |
||
Current Assets: |
|
|
|
|
|
|
Cash and cash equivalents |
|
$ |
24,712 |
|
$ |
31,153 |
Available-for-sale securities |
|
|
2,007 |
|
|
7,717 |
Accounts receivable, net |
|
|
11,037 |
|
|
9,169 |
Contract assets — royalties and license fees |
|
|
7,242 |
|
|
7,091 |
Inventories, net |
|
|
9,471 |
|
|
6,760 |
Prepaids and other |
|
|
10,212 |
|
|
8,365 |
Total Current Assets |
|
|
64,681 |
|
|
70,255 |
Property and equipment, net |
|
|
29,079 |
|
|
30,090 |
Available-for-sale securities |
|
|
— |
|
|
2,002 |
Deferred tax assets |
|
|
7,181 |
|
|
5,867 |
Intangible assets, net |
|
|
33,511 |
|
|
37,054 |
|
|
|
44,248 |
|
|
45,606 |
Other assets |
|
|
5,487 |
|
|
3,718 |
Total Assets |
|
$ |
184,187 |
|
$ |
194,592 |
Liabilities and Stockholders’ Equity |
|
|
|
|
|
|
Current Liabilities: |
|
|
|
|
|
|
Short-term borrowings |
|
|
10,000 |
|
|
10,000 |
Deferred revenue |
|
|
4,019 |
|
|
4,647 |
Other current liabilities |
|
|
14,350 |
|
|
15,168 |
Total Current Liabilities |
|
|
28,369 |
|
|
29,815 |
Deferred revenue |
|
|
8,423 |
|
|
10,301 |
Other long-term liabilities |
|
|
14,132 |
|
|
14,391 |
Total Liabilities |
|
|
50,924 |
|
|
54,507 |
Total Stockholders’ Equity |
|
|
133,263 |
|
|
140,085 |
Total Liabilities and Stockholders’ Equity |
|
$ |
184,187 |
|
$ |
194,592 |
|
|
|
|
|
|
|
Note: Derived from audited financial statements as of the date indicated. |
||||||
|
Supplemental Segment Information (in thousands) (Unaudited) |
||||||||||||||||||
|
|
Three Months Ended |
|
|
||||||||||||||
|
|
2022 |
|
2021 |
|
|
||||||||||||
Revenue: |
|
|
|
% of Total |
|
|
|
% of Total |
|
%
|
||||||||
Medical Device |
|
$ |
18,453 |
|
|
|
|
$ |
27,907 |
|
|
|
|
(33.9)% |
||||
In |
|
|
7,653 |
|
|
|
|
|
7,088 |
|
|
|
|
|
||||
Total revenue |
|
$ |
26,106 |
|
|
|
|
$ |
34,995 |
|
|
|
|
(25.4)% |
||||
|
|
|
|
|
|
|
|
|
|
|
||||||||
|
|
Six Months Ended |
|
|
||||||||||||||
|
|
2022 |
|
2021 |
|
|
||||||||||||
Revenue: |
|
|
|
% of Total |
|
|
|
% of Total |
|
%
|
||||||||
Medical Device |
|
$ |
35,361 |
|
|
|
|
$ |
44,103 |
|
|
|
|
(19.8)% |
||||
In |
|
|
13,748 |
|
|
|
|
|
13,189 |
|
|
|
|
|
||||
Total revenue |
|
$ |
49,109 |
|
|
|
|
$ |
57,292 |
|
|
|
|
(14.3)% |
||||
|
|
|
|
|
|
|
|
|
|
|
||||||||
|
|
|
|
|
|
|
|
|
|
|
||||||||
|
|
Three Months Ended |
|
Six Months Ended |
|
|
||||||||||||
|
|
|
|
|
|
|
||||||||||||
|
|
2022 |
|
2021 |
|
2022 |
|
2021 |
|
|
||||||||
Operating (loss) income: |
|
|
|
|
|
|
|
|
|
|
||||||||
Medical Device |
|
$ |
(5,612 |
) |
|
$ |
8,564 |
|
|
$ |
(9,404 |
) |
|
$ |
7,971 |
|
|
|
In |
|
|
3,720 |
|
|
|
3,809 |
|
|
|
6,875 |
|
|
|
7,029 |
|
|
|
Total segment operating (loss) income |
|
|
(1,892 |
) |
|
|
12,373 |
|
|
|
(2,529 |
) |
|
|
15,000 |
|
|
|
Corporate |
|
|
(3,008 |
) |
|
|
(2,890 |
) |
|
(5,812 |
) |
|
|
(5,424 |
) |
|
|
|
Total operating (loss) income |
|
$ |
(4,900 |
) |
|
$ |
9,483 |
|
|
$ |
(8,341 |
) |
|
$ |
9,576 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of GAAP Measures to Non-GAAP Amounts Schedule of EBITDA, Adjusted EBITDA and Cash Flows from Operations (in thousands) (Unaudited) |
||||||||||||||||
|
Three Months Ended |
|
Six Months Ended |
|||||||||||||
|
|
|
|
|||||||||||||
|
2022 |
|
2021 |
|
2022 |
|
2021 |
|||||||||
EBITDA and Adjusted EBITDA |
|
|
|
|
|
|
|
|||||||||
Net (loss) income |
$ |
(4,083 |
) |
|
$ |
8,087 |
|
|
$ |
(6,895 |
) |
|
$ |
7,813 |
|
|
Income tax (benefit) provision |
|
(919 |
) |
|
|
1,438 |
|
|
|
(1,625 |
) |
|
|
1,606 |
|
|
Depreciation and amortization |
|
2,320 |
|
|
|
1,906 |
|
|
|
4,696 |
|
|
|
3,766 |
|
|
Investment income, net |
|
(25 |
) |
|
|
(28 |
) |
|
|
(51 |
) |
|
|
(69 |
) |
|
Interest expense |
|
129 |
|
|
|
59 |
|
|
|
265 |
|
|
|
119 |
|
|
EBITDA |
|
(2,578 |
) |
|
|
11,462 |
|
|
|
(3,610 |
) |
|
|
13,235 |
|
|
|
|
|
|
|
|
|
|
|||||||||
Adjustments: |
|
|
|
|
|
|
|
|||||||||
None |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
Adjusted EBITDA |
$ |
(2,578 |
) |
|
$ |
11,462 |
|
|
$ |
(3,610 |
) |
|
$ |
13,235 |
|
|
|
|
|
|
|
|
|
|
|||||||||
|
|
|
|
|
|
|
|
|||||||||
Cash Flows from Operations |
|
|
|
|
|
|
|
|||||||||
Net cash (used in) provided by operating activities |
$ |
(4,200 |
) |
|
$ |
16,015 |
|
|
$ |
(11,226 |
) |
|
$ |
11,745 |
|
|
|
|
|
|
|
|
|
|
Guidance Reconciliation: Estimated Non-GAAP Diluted Earnings Per Share
For the Fiscal Year Ending (Unaudited) |
||||||||
|
Fiscal 2022 Full-Year Estimate |
|||||||
|
Low |
|
High |
|||||
GAAP diluted EPS |
$ |
(1.70 |
) |
|
$ |
(1.35 |
) |
|
Amortization of acquired intangibles per diluted share (1) |
|
0.28 |
|
|
|
0.28 |
|
|
Non-GAAP diluted EPS |
$ |
(1.42 |
) |
|
$ |
(1.07 |
) |
|
Net (Loss) Income and Diluted EPS GAAP to Non-GAAP Reconciliation (in thousands, except per share data) (Unaudited) |
|||||||||||||||||||||||||
|
|
For the Three Months Ended |
|||||||||||||||||||||||
|
|
Total
|
|
Operating
|
|
Operating
|
|
Loss
|
|
Net
|
|
Diluted
|
|
Effective
|
|||||||||||
GAAP |
|
$ |
26,106 |
|
$ |
(4,900 |
) |
|
(18.8 |
)% |
|
$ |
(5,002 |
) |
|
$ |
(4,083 |
) |
|
$ |
(0.29 |
) |
|
18.4 |
% |
Adjustments: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
Amortization of acquired intangible assets (1) |
|
|
— |
|
|
1,071 |
|
|
4.1 |
% |
|
|
1,071 |
|
|
|
973 |
|
|
|
0.07 |
|
|
|
|
Non-GAAP |
|
$ |
26,106 |
|
$ |
(3,829 |
) |
|
(14.7 |
)% |
|
$ |
(3,931 |
) |
|
$ |
(3,110 |
) |
|
$ |
(0.22 |
) |
|
20.9 |
% |
|
|
For the Three Months Ended |
||||||||||||||||||||||||
|
|
Total
|
|
Operating
|
|
Operating
|
|
Income
|
|
|
Net
|
|
|
Diluted
|
|
Effective
|
||||||||||
GAAP |
|
$ |
34,995 |
|
|
$ |
9,483 |
|
|
27.1 |
% |
|
$ |
9,525 |
|
|
$ |
8,087 |
|
|
$ |
0.58 |
|
|
15.1 |
% |
Adjustments: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
Amortization of acquired intangible assets (1) |
|
|
— |
|
|
|
560 |
|
|
1.6 |
% |
|
|
560 |
|
|
|
530 |
|
|
|
0.04 |
|
|
|
|
Non-GAAP |
|
$ |
34,995 |
|
|
$ |
10,043 |
|
|
28.7 |
% |
|
$ |
10,085 |
|
|
$ |
8,617 |
|
|
$ |
0.62 |
|
|
14.6 |
% |
|
|
For the Six Months Ended |
||||||||||||||||||||||||
|
|
Total
|
|
Operating
|
|
Operating
|
|
Loss
|
|
Net
|
|
Diluted
|
|
Effective
|
||||||||||||
GAAP |
|
$ |
49,109 |
|
|
$ |
(8,341 |
) |
|
(17.0 |
)% |
|
$ |
(8,520 |
) |
|
$ |
(6,895 |
) |
|
$ |
(0.50 |
) |
|
19.1 |
% |
Adjustments: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
Amortization of acquired intangible assets (1) |
|
|
— |
|
|
|
2,160 |
|
|
4.4 |
% |
|
|
2,160 |
|
|
|
1,963 |
|
|
|
0.15 |
|
|
|
|
Non-GAAP |
|
$ |
49,109 |
|
|
$ |
(6,181 |
) |
|
(12.6 |
)% |
|
$ |
(6,360 |
) |
|
$ |
(4,932 |
) |
|
$ |
(0.35 |
) |
|
22.5 |
% |
|
|
For the Six Months Ended |
||||||||||||||||||||||||
|
|
Total
|
|
Operating
|
|
Operating
|
|
Income
|
|
Net
|
|
Diluted
|
|
Effective
|
||||||||||||
GAAP |
|
$ |
57,292 |
|
|
$ |
9,576 |
|
|
16.7 |
% |
|
$ |
9,419 |
|
|
$ |
7,813 |
|
|
$ |
0.56 |
|
|
17.1 |
% |
Adjustments: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
Amortization of acquired intangible assets (1) |
|
|
— |
|
|
|
1,116 |
|
|
2.0 |
% |
|
|
1,116 |
|
|
|
1,056 |
|
|
|
0.08 |
|
|
|
|
Non-GAAP |
|
$ |
57,292 |
|
|
$ |
10,692 |
|
|
18.7 |
% |
|
$ |
10,535 |
|
|
$ |
8,869 |
|
|
$ |
0.64 |
|
|
15.8 |
% |
(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 ( |
|
(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 and six months ended |
View source version on businesswire.com: https://www.businesswire.com/news/home/20220427005125/en/
ir@surmodics.com
Source:
FAQ
What were Surmodics' fiscal 2022 second quarter earnings results for SRDX?
How did Surmodics' medical device revenue perform in the second quarter of fiscal 2022?
What is Surmodics' updated revenue guidance for fiscal 2022?
What milestone payment could Surmodics receive in fiscal 2022 related to the SurVeil DCB?