READING, Pa., Jan. 18 /PRNewswire-FirstCall/ -- Arrow International, Inc. reported on the results of its Annual Meeting of Shareholders held today at the Company’s corporate headquarters in Reading, PA. At the meeting, Arrow’s Chairman and Chief Executive Officer, Carl G. Anderson, Jr., reviewed with shareholders several critical programs that are expected to strengthen the Company’s infrastructure and enable it to achieve future growth and deliver value to its stakeholders. These include Arrow’s manufacturing capital investment program, its company-wide quality systems enhancements, and other significant initiatives intended to generate top line growth.
At the Annual Meeting, Arrow shareholders voted to approve amendments to the Company’s Restated Articles of Incorporation and By-laws to declassify the Company’s Board of Directors and elect all directors annually, elected Mr. Anderson, John H. Broadbent, Jr., George W. Ebright, John E. Gurski, T. Jerome Holleran, R. James Macaleer, Marlin Miller, Jr., Raymond Neag, Richard T. Niner, Anna M. Seal and Alan M. Sebulsky as directors of the Company for terms expiring in 2007, approved the adoption of the Company’s 2006 Directors Stock Incentive Plan, and ratified the appointment of PricewaterhouseCoopers LLP as the Company’s registered independent accounting firm for fiscal year 2006.
Mr. Anderson reported that investment in its manufacturing capacity, together with a significant investment in process technology, continues to be on schedule. This additional manufacturing capability should enable the Company to meet customer demand and improve service levels around the globe.
Mr. Anderson also reported that Arrow’s company-wide effort to enhance its quality systems is also on schedule. This important initiative is designed to strengthen Arrow’s competitive advantage through a customer-centric strategic quality system that drives value-added improvements. It will help ensure Arrow’s quality systems remain compliant with the requirements of the U.S. Food and Drug Administration, Japan’s new Pharmaceutical Affairs Law, and the ISO requirements for the CE mark in Europe.
Mr. Anderson commented, “Arrow has reached an important juncture in the Company’s history. We have spent much of the last 18 months engaged in programs to strengthen our infrastructure to support future growth. While these programs are by no means complete, we are encouraged with how the Arrow team is executing on these important programs. Now, we must build on those efforts as we develop and implement initiatives to generate top-line growth.”
Mr. Anderson discussed four company objectives to generate top-line growth:
- Increase the pace of successful new product introductions; - Accelerate revenue growth in the United States, Arrow’s largest market; - Accelerate revenue growth and focus on the Asia-Pacific markets, specifically Japan and the People’s Republic of China; and - Continue the strong growth trends Arrow has been enjoying in Europe.
Mr. Anderson stated, “To prepare for this next phase in the Company’s development, we recently completed a reorganization in Sales, Marketing, and Research and Development. We believe Arrow’s three main regions, the United States, Europe, and Asia-Pacific, will now have the capability to provide regional solutions to our customers’ requirements maintaining the global integrity of our brands and product lines. We have realigned our marketing teams to better support major product lines and identify and develop new product opportunities. We have restructured our applied research and product development organization to increase the pace of new product development and enable the Company to effectively respond to emerging customer requirements in regional markets. We have also strengthened our upstream product development effort through internal applied research and an ongoing effort to identify new technologies and acquisition opportunities.”
Mr. Anderson also discussed Arrow’s new products. He stated, “Arrow has been working on several new product concepts. The first is in our central venous access product line. In the U.S., approximately 2,700 hospitals have joined the Institute for Healthcare Improvement (IHI) initiative to save 100,000 patient lives through improved hospital care. Arrow is in the process of launching a new Central Venous Access Kit featuring a new maximal barrier precautions tray that has been well-received for its inclusion of drapes and safety components that address the Centers for Disease Control and IHI guidelines in one easy-to-access kit.
“In the area of dialysis access, the Company has begun marketing two new products, the Arrow Edge(TM) and Arrow Simplicity(TM) Micro Puncture Introducer Set, which will join the Arrow Cannon(TM) II Plus and expand the Company’s offering of acute and chronic hemodialysis catheters, embolectomy balloon catheters, and the percutaneous thrombolytic device (PTD(R)) as the cornerstones of our dialysis access product offerings.
“And, while not a recent product launch, we are growing our intra-aortic balloon pump (IAB) business as customers increasingly seek the benefits and value of the AutoCAT(R) 2WAVE(TM) and associated LightWAVE(TM) fiber optic catheter system. Recently, we added to this product line by introducing a new IAB catheter, which is designed to meet the requirements of Japanese patients.
“We expect these new product introductions and the reduction in customer backorders resulting from our new manufacturing capability, to go a long way toward helping Arrow achieve our ambitious growth objectives in the second half of fiscal year 2006.”
Mr. Anderson, speaking on behalf of the Arrow Board of Directors, also recognized the outstanding efforts of Arrow’s leaders and its teams throughout the world that are making this progress possible and thanked Arrow’s shareholders for their continued support.
Company Information
Arrow International, Inc. develops, manufactures and markets a broad range of clinically advanced, disposable catheters and related products for critical and cardiac care. The Company’s products are used primarily by anesthesiologists, critical care specialists, surgeons, emergency and trauma physicians, cardiologists, interventional radiologists, electrophysiologists, and other health care providers.
Arrow International’s news releases and other company information can be found on its website at http://www.arrowintl.com.
The Company’s common stock trades on the Nasdaq National Market(R) under the symbol ARRO.
Safe Harbor Statement
“Safe Harbor” Statement under the Private Securities Litigation Reform Act of 1995: This news release provides historical information and includes forward-looking statements (including projections). Although the Company believes that the expectations in such forward-looking statements are reasonable, the Company can give no assurance that such expectations will prove to have been correct. The forward-looking statements are based upon a number of assumptions and estimates that, while presented with numerical specificity and considered reasonable by the Company, are inherently subject to significant business, economic and competitive risks, uncertainties and contingencies which are beyond the control of the Company, and upon assumptions with respect to future business decisions which are subject to change. Accordingly, the forward-looking statements are only an estimate, and actual results will vary from the forward-looking statements, and these variations may be material. Consequently, the inclusion of the forward- looking statements should not be regarded as a representation by the Company of results that actually will be achieved. Forward-looking statements are necessarily speculative in nature, and it is usually the case that one or more of the assumptions in the forward-looking statements do not materialize. Investors are cautioned not to place undue reliance on the forward-looking statements. In connection with the “Safe Harbor” provisions of the Private Securities Litigation Reform Act of 1995, the Company cautions the reader that, among others, the factors below, which are discussed in the Company’s Annual Report on Form 10-K for the fiscal year ended August 31, 2005 and in its other filings with the Securities and Exchange Commission, could cause the Company’s results to differ materially from those stated in the forward- looking statements. These factors include: (i) stringent regulation of the Company’s products by the US Food and Drug Administration and, in some jurisdictions, by state, local and foreign governmental authorities; (ii) the highly competitive market for medical devices and the rapid pace of product development and technological change in this market; (iii) pressures imposed by the health care industry to reduce the cost or usage of medical products and services; (iv) dependence on patents and proprietary rights to protect the Company’s trade secrets and technology, and the need for litigation to enforce or defend these rights; (v) risks associated with the Company’s international operations; (vi) potential product liability risks inherent in the design, manufacture and marketing of medical devices; (vii) risks associated with the Company’s use of derivative financial instruments; and (viii) dependence on the continued service of key members of the Company’s management.
Arrow International, Inc.
CONTACT: Frederick J. Hirt, CFO of Arrow International, Inc.,+1-610-478-3117
Web site: http://www.arrowintl.com/
