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Symmetry Medical Reports Fourth Quarter and Full Year 2010 Financial Results
Date:2/24/2011

in the Company's orthopedic and other medical device businesses. The sequential revenue growth was driven primarily by increased customer demand in the Company's Instruments business and reflects continued stabilization of the Company's Instruments, Implants and Cases businesses in the second half of 2010.

Gross profit for the fourth quarter 2010 was $22.5 million, up 60.9% compared to $14.0 million in the same period last year and up 13.3% compared to $19.8 million in the third quarter 2010.  Gross margin percentage for the fourth quarter 2010 was 23.4%, compared to 18.3% in the same period last year and 21.7% for the third quarter 2010.  The gross margin expansion was a result of continued manufacturing efficiency improvements coupled with higher sales.  This gross margin expansion was partially offset by the Company's continued investment in quality and regulatory services to support increased customer and FDA requirements.

Selling, general and administrative expenses in the fourth quarter 2010 were $13.4 million, compared to $10.9 million in the same period last year and $12.2 million in the third quarter 2010. The increase in selling, general and administrative expenses in the fourth quarter 2010 was primarily related to increased research and development expenses, direct sales activities at the SSI distribution unit, increased healthcare expense, as well as an increase in sales commissions related to higher revenue.  Facility closure and severance costs were negligible in the fourth quarter of 2010, compared to $2.0 million in the same period last year and $0.1 million in the third quarter of 2010.

Operating income for the fourth quarter 2010 was $9.0 million, up 683.7% compared to $1.2 million in the same period last year and up 19.9% compared to $7.5 million in the third quarter 2010. Operating margin for the fourth quarter 2010 was 9.4%, compared to 1.5% in the same period last year and 8.2% in the third quarter 20
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