Haemonetics Reports Strong Results for Fourth Quarter and Fiscal Year End 2008 and Issues Guidance for Continued Strong Growth in F...(gy platforms across the blood bank and h...),Health

FINANCIALS

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 ended:

-- Preferred provider contracts with Haema AG and Octapharma Europe in its

plasma business which can capitalize on ongoing collection market

growth

-- 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
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