In addition to revenues and earnings per share, Haemonetics reported fourth quarter gross profit of $70 million, up 20%, and gross margin of 50.6%, up 70 basis points. For the year, gross profit was $258 million, up 13%, and gross margin was 49.9%, down 70 basis points. Gross margin was impacted by product mix as lower gross margin contributors, plasma and equipment, had very strong sales growth.
Adjusted operating expenses were $47 million in the quarter, up 26%, and $181 million for the year, up 15%. Nearly half of the year's increase came from three areas: 1) planned enterprise resource planning ("ERP") spending; 2) the acquisitions of IDM, Infonale, and Haemoscope, whose expenses were not included in most of fiscal 2007 financial results; and 3) continued investment in Arryx R&D.
Haemonetics' tax rate was 35.5% in the quarter and 32.8% for the year. In the year, Haemonetics benefited from resolution of certain tax contingencies.
Haemonetics ended the year with a cash balance of $134 million, and $12 million of debt. During the year, the Company generated $76 million of cash flow from operations and invested $57 million in capital expenditures to invest in ERP, the plasma business, and software development. In the year, the Company invested $75 million in a share repurchase and $46 million on acquisitions.
EXPANDING THE BUSINESS
Haemonetics continues to make progress expanding the business. The
Company reported the following highlights during the fiscal year just
-- Preferred provider contracts with Haema AG and Octapharma Europe in its
plasma business which can capitalize on ongoing collection market
-- Expansion of an agreement with the U.S. Department of Defense for
information technology services that manage the Department of Defense's
blood standard system
-- Launch o
|SOURCE Haemonetics Corporation|
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