Sirona second quarter revenue increases 8% to $231.9 million

Sirona (Nasdaq: SIRO), the dental technology leader, today announced its financial results for the quarter ended March 31, 2012.

Second Quarter Fiscal 2012 vs. Second Quarter Fiscal 2011 Financial Results

Revenue was $231.9 million, an increase of $17.1 million or up 8% (up 11.1% on a constant currency basis), with growth rates for the Company's business segments as follows: Treatment Centers increased 12.7% (up 17.5% on a constant currency basis), CAD/CAM Systems increased 11.1% (up 13.7% on a constant currency basis), Imaging Systems increased 3.5% (up 6.0% on a constant currency basis), and Instruments increased 3.3% (up 7.7% on a constant currency basis).

Revenue in the United States increased 4.9%, while revenues outside the United States increased 9.2% (up 13.7% constant currency), with particularly robust performance in the Asia Pacific region.

Gross profit was $124.6 million, up $9.0 million. Gross profit margin was 53.8% in the second quarter of Fiscal 2012, compared to 53.9% in the prior year. Gross profit margin as a percent of sales was positively impacted by lower amortization, which was offset by margin compression mainly due to product mix.

Second quarter 2012 operating income excluding amortization expense was $52.2 million (operating income of $40.1 million plus amortization expense of $12.0 million, compared to $47.0 million (operating income of $33.5 million plus amortization expense of $13.5 million) in the second quarter of 2011.

Net income for the second quarter of 2012 was $30.5 million, or $0.54 per diluted share, versus $29.3 million, or $0.51 per diluted share in the prior year period. Non-GAAP earnings per diluted share for the second quarter of 2012 was $0.64 compared to $0.58 in the prior year quarter.

At March 31, 2012, the Company had cash and cash equivalents of $77.8 million and total debt of $77.6 million, resulting in net cash of $0.2 million. This compares to net debt of $22.5 million at September 30, 2011.

Jost Fischer, Chairman and CEO of Sirona commented: "I am pleased to report solid results for the second quarter of fiscal 2012. The Treatment Center and the CAD/CAM segments led our growth, up 17.5% and 13.7% respectively on a constant currency basis. Revenue growth was particularly strong in non-European international markets, led by Asia Pacific. We benefited from our innovative product lines and our expanded presence in these markets. Additionally, the U.S. posted a sequential improvement in revenue growth. These results validate our strategy to invest in our global sales and service infrastructure while innovation continues to be a top priority at Sirona. We are very well positioned for continued robust revenue growth in the fiscal year 2012 and beyond."

Fiscal 2012 Guidance

Management confirms fiscal year 2012 constant currency revenue growth^* at the upper-end of the announced guidance range of 6% to 8% and operating income plus amortization^* to be in the range of $227 to $234 million.

First Six Months Fiscal 2012 vs. First Six Months Fiscal 2011 Financial Results

Revenue was $490.0 million, an increase of $39.6 million or up 8.8% (up 10.7% on a constant currency basis), with growth rates for the Company's business segments as follows: Imaging Systems increased 14.0% (up 15.4% on a constant currency basis), Treatment Centers increased 7.4% (up 10.1% on a constant currency basis), CAD/CAM Systems increased 5.9% (up 7.5% on a constant currency basis), and Instruments increased 5.5% (up 8.1% on a constant currency basis).

Revenue in the United States increased 3.4%, while revenues outside the United States increased 11.0% (up 13.7% constant currency), with particularly robust performance in the Asia Pacific region.

Gross profit was $263.4 million, up $17.3 million. Gross profit margin was 53.8% in the first half of Fiscal 2012, compared to 54.6% in the prior year. Gross profit margin as a percent of sales was positively impacted by lower amortization, which was more than offset by margin compression mainly due to product mix.

First half of Fiscal 2012 operating income excluding amortization expense was $118.8 million (operating income of $94.4 million plus amortization expense of $24.3 million), compared to $116.5 million (operating income of $89.5 million plus amortization expense of $27.0 million) in the first half of Fiscal 2011.