BRAINTREE, Mass., Jan. 29, 2015 /PRNewswire/ -- Haemonetics Corporation (NYSE: HAE) today reported third quarter fiscal 2015 revenue of $231.8 million, down 4.3%. In constant currency, revenue declined 1.4% in the quarter. The Company reported third quarter GAAP net income of $16.0 million and GAAP net income per share of $0.31. Exclusive of transformation, restructuring and deal amortization expenses detailed below, adjusted net income was $27.5 million and adjusted earnings per share were $0.53, both down 14%.[1]
For the first three quarters of fiscal 2015, revenue was $683.9 million, down 2% as reported and 1% in constant currency. The Company reported year-to-date GAAP net income of $19.8 million and GAAP net income per share of $0.38. Exclusive of transformation, restructuring and deal amortization expenses detailed below, adjusted net income was $71.6 million, down 21%, and adjusted earnings per share were $1.38, down 20%.[1]
3Q FISCAL 2015 HIGHLIGHTS
- Solid constant currency revenue increases in growth drivers including:
- 11% growth in plasma disposables revenue
- 25% growth in TEG® diagnostics disposables revenue
- 11% growth in China disposables revenue
- Key new product advances
- TEG 6s diagnostics device received two 510(k) clearances
- SOLX® clinical trial data submitted to the FDA
- Signed first Comprehensive Blood Management Solutions (CBMS) account targeting significant economic value for the Hospital through BloodTrack® HaemoBank, TEG, cell salvage, SafeTrace Tx® and other Company software and service offerings
- Secured second customer for next generation Plasma software
- Value Creation and Capture (“VCC”) initiatives continuing on schedule with February 5 “ribbon cutting” planned for new Penang, Malaysia plant
GROWTH DRIVERS UPDATE
Combined constant currency disposables revenue increase for the Company’s growth drivers of Plasma, TEG and Emerging Markets was 7% in the third quarter. Orders in emerging markets were impacted by economic weakness in Russia, where revenue was lower than in the prior year quarter, adversely impacting the disposables revenue growth rate for the combined growth drivers by 2%. On a constant currency basis, these growth drivers had 10% disposables growth in the first nine months of fiscal 2015, and 8% when adjusted for the impact of a favorable Plasma comparison resulting from the acquisition of the Company’s Australian plasma distributor in the same period of fiscal 2014.
The Company announced that its next generation diagnostics device, the TEG 6s, recently received the first two of three required 510(k) clearances. The Company expects to begin a limited market release in the U.S. early in fiscal 2016.
The Company announced it has completed the planned clinical testing of its SOLX storage solution, submitted final data to the FDA, and filed for Canadian registration of SOLX. Plans are being formulated to introduce SOLX, together with the Company’s whole blood filter, in a North American limited market release, upon receipt of required clearances.
The Company also announced that KEDPlasma USA has gone live with Haemonetics’ next generation donor management software, representing the second long-term customer contract for this software, which recently received 510(k) approval.
Brian Concannon, Haemonetics’ President and CEO, stated: “Our growth drivers, which represent 60% of our disposables revenue in the third quarter, continue to deliver solid growth despite headwinds resulting from economic uncertainty in the Russian market. We expect this strong revenue performance to continue, bolstered by recent Plasma contract wins.
“In fiscal 2016, the expected continued strong performance of our growth drivers and the anniversary of much of the headwind experienced in our North American whole blood business during fiscal 2015, underpin our outlook for a return to mid-single digit revenue growth.”
THIRD QUARTER AND YEAR-TO-DATE 2015 REVENUE ELEMENTS
Plasma
Plasma disposables revenue was $83.2 million in the third quarter, up $6.5 million, or 8% on a reported basis and 11% in constant currency. North America Plasma disposables revenue was up 13%, as collection volumes continued to benefit from a robust end user market for plasma-derived biopharmaceuticals. Excluding the favorable impact of the distribution model change in Australia last year, Plasma revenue growth was 11% in the first nine months of 2015.
Blood Center
Platelet disposables revenue was $38.4 million in the third quarter, down 12% on a reported basis, and down 4% on a constant currency basis. Year-to-date constant currency revenue growth of 4% was attributable to strong demand in emerging markets.
Red cell disposables revenue was $10.9 million in the third quarter, up 10%, and $31.3 million year-to-date, up 4% over the prior year. Growth was principally in North America and resulted from changes in red cell collection practices and favorable comparisons with the prior year.
Whole blood disposables revenue was $34.2 million in the third quarter of fiscal 2015, down 28%, and $105.9 million year-to-date, down 27%. Previously disclosed market share losses, pricing and the termination of an OEM supply contract negotiated at the time of the whole blood acquisition contributed to the declines. These headwinds will anniversary by the end of the first quarter of fiscal 2016. Declines in North American transfusion rates of roughly 10% contributed approximately $6 million of the year-to-date decline. This trend is expected to continue through the remainder of fiscal 2015 and then moderate in fiscal 2016.
Hospital
Surgical disposables revenue was $15.6 million in the third quarter, down 7% as reported and down 1% on a constant currency basis. Year-to-date fiscal 2015 surgical disposals revenue of $46.9 million was down 5% as reported and 2% in constant currency. Strength in the emerging markets was offset by declines in the developed markets in the third quarter and first nine months.
Disposables revenue from the OrthoPAT® orthopedic perioperative autotransfusion system was $5.0 million for the quarter, down 21%. Year-to-date OrthoPAT revenue was $15.3 million, down 19%. Market trends toward the adoption of tranexamic acid to prevent post-operative blood loss continued to lessen hospital use of OrthoPAT disposables.
Diagnostics disposables revenue was $10.9 million for the quarter, up 27%. Year to date diagnostics disposables revenue was $30.5 million, up 26%. The TEG Hemostasis Analyzer installed base increased 15% in the trailing 12 months, positioning the TEG business for continued double-digit disposables revenue growth.
Software and Equipment
Software Solutions revenue was $18.2 million in the third quarter, up $0.6 million, and $54.1 million year-to-date, up $2.6 million, a 3% increase in the quarter and 5% year-to-date. BloodTrack, a key enabler of the Company’s CBMS growth strategy, drove much of this growth and the pipeline for blood management software opportunities remains strong.
Equipment and other revenue was $15.5 million, essentially flat with the prior year’s third quarter.
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