First-quarter fiscal 2010 results announced by Kensey Nash

Oct 22 2009

Kensey Nash Corporation (Nasdaq: KNSY), a leading medical technology company that provides innovative solutions and technologies for a wide range of medical procedures, today reported the results for its first quarter ended September 30, 2009.

First Quarter Snapshot and Recent Developments

• EPS of $0.43, exceeding the high end of previous guidance of $0.40-$0.42.
• Revenue of $19.7 million, just below the low end of previous guidance of $19.8-$20.2 million.
• Net sales of $13.4 million, exceeding the high end of previous guidance of $13.0-$13.2 million.
• Royalty income of $6.3 million, below our previous guidance of $6.8- $7.0 million.
• Operating margin of 39%.
• Operating cash flow of $8.6 million.
• EBITDA* of $9.4 million.
• Signed strategic distribution agreement with Synthes for certain products developed from our unique extracellular matrix (ECM) technology.

President and CEO Commentary

"We are pleased to report earnings and net sales in line with our expectations, and consistent with the comparable prior year period. However, our royalty income was down from the prior year and sequentially. Although it is difficult to assess the exact cause for the softness in our royalties, it appears to be a combination of product mix and the negative affects of foreign currency exchange. We believe our net sales growth, particularly related to sports medicine products will be negatively affected in the short-term by the reduction in elective procedures, combined with reduced hospital inventories, caused by the current economic environment. Though we are cautious about the short-term healthcare markets, we expect to see improvement in the second half of our fiscal year. Despite these depressed economic conditions, we are confident in our ability to increase profitability and continue to invest in our exciting new product portfolio including our ECM and cartilage technologies," commented Joe Kaufmann, President and CEO of the Company.