EATONTOWN, N.J., March 4 /PRNewswire-FirstCall/ -- Osteotech, Inc. (Nasdaq: OSTE), a leader in the emerging field of biologic products for regenerative healing, today reported financial results for the fourth quarter and full year ended December 31, 2008.
"The last twelve months were an important transitional time for Osteotech. Our entire team worked diligently to execute our corporate strategy to leverage the Company's proprietary technology portfolio into unique, procedure-driven products providing a stable platform to support long-term sales growth and profitability," said Sam Owusu-Akyaw, President and Chief Executive Officer of Osteotech. "We continued to receive U.S. Food and Drug Administration (FDA) clearances for new products and our 2009 plan includes the launch of our MagniFuse(TM) Bone Graft and Plexur M(TM) Biocomposite, the re-launch of the Plexur P(R) platform and the unveiling of our first product based upon our proprietary human collagen technology platform, the DuraTech(TM) BioRegeneration Matrix. Complementing our progress within product development, we have also continued to execute our strategy to streamline and strengthen our access-based agency sales model. We remain encouraged by the progress we are making in these strategies and believe that once these initiatives are fully executed we will be well positioned to emerge as a leader in regenerative and biologic healing."
Recent and 2008 Corporate Developments
Product Development and Regulatory
Revenue for the three months ended December 31, 2008 was $24.6 million compared with $26.9 million for the three months ended December 31, 2007. The decline in fourth quarter 2008 revenue compared with 2007 was primarily driven by the expected reduction in private label Demineralized Bone Matrix (DBM) revenue of $2.6 million. Revenue for the full year ended December 31, 2008 was $103.8 million compared with $104.3 million for the full year 2007. Revenue for the full year was negatively impacted by the 62% reduction in private label DBM revenue, which was partially offset by the 15% growth achieved in the Company's international business and 2% growth in its domestic business.
Net loss for the fourth quarter ended December 31, 2008 was $409,000, or a net loss of $0.02 per diluted share, compared with net income of $806,000, or $0.04 diluted earnings per share, for the fourth quarter of 2007. Net income for the full year ended December 31, 2008 was $2.2 million, or $0.12 diluted earnings per share, compared with net income of $2.6 million, or $0.15 diluted earnings per share, for 2007. Net income in 2008 included a gain of $1.0 million associated with the settlement of certain litigation, while net income for 2007 was negatively impacted by costs of $1.0 million related to the settlement of certain litigation.
"Looking ahead, we expect 2009 to be an exciting year that will include the re-launch of Plexur P and the anticipated launches of MagniFuse, Plexur M and DuraTech," continued Mr. Owusu-Akyaw. "In addition, we expect our access-based agency sales teams to continue to develop and to successfully bring our new procedure-driven products to market. Three years ago we began developing our proprietary, high-technology product roadmap and by the fourth quarter of 2009, we expect to see tangible results stemming from the successful execution of our growth strategy. As a result, we believe we will be well positioned for long-term, profitable revenue growth in 2010 and well into the future."
Conference Call Tomorrow, March 5, 2009
The Osteotech management team will host a conference call on March 5, 2009 at 9:00 a.m. (EST) to discuss full year 2008 financial results and guidance for 2009. The conference call may be accessed by dialing 1-866-804-6920 (domestic) or 1-857-350-1666 (international) and indicating access code 93870509. The conference will also be simultaneously webcast at http://www.osteotech.com. A replay of the conference call will be available approximately two hours after completion of the live call, through midnight, on March 19, 2009, by dialing 1-888-286-8010 and using access code 66948463.
Osteotech, Inc., headquartered in Eatontown, New Jersey, is a global leader in providing biologic solutions for regenerative medicine to support surgeons and their patients in 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 www.osteotech.com.
Certain statements made throughout this press release that are not historical facts are forward-looking statements (as 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, the Company's ability to develop and introduce new products, 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 March 4, 2009 and the Company does not intend to update this information.
OSTEOTECH, INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF OPERATIONS (dollars in thousands, except per share data) Three Months Year Ended Ended December 31, December 31, 2008 2007 2008 2007 Revenue $24,567 $26,939 $103,814 $104,277 Cost of revenue 11,148 12,532 48,770 50,555 Gross profit 13,419 14,407 55,044 53,722 Marketing, selling and general and administrative 11,553 11,696 45,032 44,801 Research and development 2,162 1,965 7,435 5,658 13,715 13,661 52,467 50,459 Operating income (loss) (296) 746 2,577 3,263 Interest expense, net (310) (129) (1,072) (588) Other 8 185 961 (1) Income (loss) before income taxes (598) 802 2,466 2,674 Income tax provision (benefit) (189) (4) 263 57 Net Income (loss) $(409) $806 $2,203 $2,617 Earnings (loss) per share: Basic $(.02) $.05 $.12 $.15 Diluted $(.02) $.04 $.12 $.15 Shares used in computing earnings (loss) per share: Basic 17,918,606 17,666,940 17,833,902 17,538,254 Diluted 17,918,606 18,093,058 18,083,584 17,926,384 CONSOLIDATED SEGMENT REVENUE DETAIL (dollars in thousands) Three Months Year Ended Ended December 31, December 31, 2008 2007 2008 2007 DBM $14,397 $17,107 $61,961 $65,794 Hybrid/Synthetic 900 591 3,087 1,760 Traditional Tissue 4,652 4,491 20,258 17,623 Spinal Allografts 2,020 2,438 8,499 10,739 Client Services 1,674 2,085 8,201 7,621 Other Product Lines 924 227 1,808 740 Revenue $24,567 $26,939 $103,814 $104,277 CONDENSED CONSOLIDATED BALANCE SHEETS (dollars in thousands) December 31, 2008 2007 Assets Cash and cash equivalents $18,823 $22,777 Accounts receivable, net 17,968 19,353 Deferred processing costs 38,715 30,850 Inventories 1,467 1,171 Other current assets 3,115 3,957 Total current assets 80,088 78,108 Property, plant and equipment, net 34,005 34,508 Other assets 13,022 7,735 $127,115 $120,351 Liabilities and Stockholders' Equity Accounts payable and accrued liabilities $23,569 $19,364 Current maturities of capital lease obligation 895 807 Total current liabilities 24,464 20,171 Capital lease obligation 13,175 14,069 Other liabilities 6,626 7,083 Total liabilities 44,265 41,323 Stockholders' equity 82,850 79,028 $127,115 $120,351
|SOURCE Osteotech, Inc.|
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