BRAINTREE, Mass., May 4 /PRNewswire-FirstCall/ -- Haemonetics Corporation (NYSE: HAE) today reported record revenues and earnings for fiscal 2010. The Company also announced fiscal 2011 guidance, including continued double digit growth in earnings.

For the year, Haemonetics reported GAAP net revenues of $645 million, up 8%; net income of $58 million, and earnings per share of $2.24, down 1%. Excluding transformation costs and contingent consideration income in fiscal 2010, adjusted full year net income was $74 million, up 16%, and adjusted earnings per share were $2.85, up 16%.(1)

Fourth quarter fiscal 2010 GAAP net revenues were $169 million, up 11%; net income was $4 million, down 72%, and earnings per share were $0.15, down 71%. Excluding transformation costs and contingent consideration income in fiscal 2010 adjusted fourth quarter net income was $19 million, up 15%, and earnings per share were $0.75, up 17%.(1)

Haemonetics ended the year with $142 million in cash and $22 million of debt, and generated $75 million of free cash flow. In the year, cash was used for several strategic acquisitions and a $40 million share repurchase which Haemonetics completed in the third quarter of fiscal 2010.

Brian Concannon, Haemonetics President and CEO, said, Fiscal 2010 was a strong year operationally and strategically. Im very pleased with our results. We committed several years ago to top line growth and improved profitability and weve delivered. As importantly, we strengthened our leadership position in blood management and we continue to invest in our Automated Whole Blood and Arryx Blood Typing Systems, two key products for our future.

STRATEGIC AND SEGMENT GROWTH HIGHLIGHTS

Haemonetics continues to make progress expanding its business. The Company reported the following highlights:

• Four acquisitions consummated in 13 months building out blood management solutions capabilities in line with long term strategic plans. The latest acquisition, of Global Med Technologies, Inc., closed in April 2010, substantially completes Haemonetics platform of IT software blood management solutions.
• A strategic alliance signed with Alba Bioscience for access to a comprehensive array of FDA approved blood typing reagents for exclusive use with the Arryx blood typing platform.
• The launch of IMPACT Online - a proprietary web based blood management dash board to enhance blood management by hospital leadership.
• 66 North American IMPACT customers in fiscal 2010 driving acceleration in key product lines evidenced by Q4 growth rates of 41% in TEG® disposables, 9% in OrthoPAT® disposables and 38% in cardioPAT® disposables.

As noted, Haemonetics fiscal 2010 reported revenues were $645 million, up 8%. Excluding the effects of currency, full year net revenues grew 6%. Reported revenues break down as follows:

Plasma disposables revenue was $232 million for the year, up 15%. Haemonetics plasma business growth moderated over the course of the year as expected. Haemonetics expects its plasma business will be an ongoing high single digit revenue growth driver for the Company.

Platelet disposables revenue was $151 million for the year, up 5%. The platelet business benefited from strong sales in Asia and Japan and a recovery in our ELA distribution markets in the later part of the year.

Red cell disposables revenue was $48 million for the year, down 3%. Revenue declined due to decreased demand for red cells as a result of declining surgical procedures and fewer transfusions.

Surgical disposables revenue was $70 million for the year, up 3%. The surgical business benefited from double digit revenue growth in Japan.

OrthoPAT orthopedic perioperative autotransfusion system disposables revenue was $37 million for the year, up 5%. The Company made progress later in the year advancing OrthoPAT system sales in blood management solutions accounts.

Diagnostics revenue was $22 million for the year, up 10%. Revenues related to the TEG Thrombelastograph® Hemostasis Analyzer business accelerated over the course of the year driven by the Companys IMPACT initiative.

Software Solutions revenue was $36 million for the year, up 14%. Software Solutions growth was primarily impacted by underlying plasma growth, acquisitions and by the cancellation of a contract by the Department of Defense in Q4 of fiscal 2009.

Equipment revenue was $49 million for the year, up 2%. Economic conditions placed pressure on customer capital budgets which was offset by the impact of the SEBRA® acquisition. Placements of equipment under use plans were strong with 6% growth in our installed base during the year.

Haemonetics reported revenue growth in all geographies for the year, with North American sales up 9%, European sales up 3%, Japanese sales up 12%, and Asian sales up 13%.

FISCAL 2011 GUIDANCE(1)

Haemonetics announced its fiscal 2011 annual guidance for revenue growth of 9-12%, adjusted operating income growth of 11-14% excluding the impact of planned transformation and integration costs of approximately $7 million, and adjusted earnings per share of $3.15 to $3.25 excluding the $0.20 impact of planned transformation and integration costs. The Company expects more than 100 basis point gross margin improvement and approximately 30 basis points of adjusted operating margin improvement, and a tax rate of 30-31%. For the year, the Company expects to generate approximately $85 million of adjusted free cash flow before funding $15 million of cash transformation costs.

Mr. Concannon added, The near term outlook for our business is strong, with balanced growth expected across multiple product lines, continued operating discipline and a strong contribution during fiscal 2011 from our latest acquisitions.

Haemonetics has posted several items on its website: fiscal 2011 guidance; income scenarios reflecting guidance ranges; and potential fiscal 2011 product line growth. The information is posted at http://www.haemonetics.com/site/content/investor/guidance.asp.

FISCAL 2011 SHARE REPURCHASE PROGRAM

The Company announced that its Board of Directors has approved a $50 million share repurchase.

ANNUAL INVESTOR DAY

Haemonetics is hosting its annual investor and analyst day on Thursday, May 13th at its corporate headquarters in Braintree, MA. Information on the event is posted on the Haemonetics website.

CONFERENCE CALL

Haemonetics will host a webcast on Tuesday, May 4th at 10:00 am Eastern to discuss these results. Interested parties can participate at http://phx.corporate-ir.net/phoenix.zhtml?p=irol-eventDetails&c=72118&eventID=3004348

Haemonetics (NYSE: HAE) is a global healthcare company dedicated to providing innovative blood management solutions for our customers. Together, our devices and consumables, information technology platforms, and consulting services deliver a suite of business solutions to help our customers improve clinical outcomes and reduce the cost of healthcare for blood collectors, hospitals, and patients around the world. Our technologies address important medical markets: blood and plasma component collection, the surgical suite, and hospital transfusion services. To learn more about Haemonetics, visit our web site at http://www.haemonetics.com.

This release contains forward-looking statements that involve risks and uncertainties, including technological advances in the medical field and standards for transfusion medicine and our ability to successfully implement products that incorporate such advances and standards, product demand, market acceptance, regulatory uncertainties, the effect of economic and political conditions, the impact of competitive products and pricing, blood product reimbursement policies and practices, foreign currency exchange rates, changes in customers ordering patterns, the effect of industry consolidation as seen in the plasma market, the effect of communicable diseases and the effect of uncertainties in markets outside the U.S. (including Europe and Asia) in which we operate and other risks detailed in the Company’s filings with the Securities and Exchange Commission. The foregoing list should not be construed as exhaustive. The forward-looking statements are based on estimates and assumptions made by management of the Company and are believed to be reasonable, though are inherently uncertain and difficult to predict. Actual results and experience could differ materially from the forward-looking statements.

(1) A reconciliation of GAAP to adjusted financial results is included at the end of the financial sections of this press release as well as on the web at http://www.haemonetics.com/site/content/investor/investor.asp . In the quarter, Haemonetics incurred $26 million in transformation costs (related to restructuring, deal closing costs and asset write downs), and recorded $2 million in contingent consideration income, all amounts stated pre-tax. For the year, transformation costs totaled $27 million and contingent consideration income was $2 million, all amounts stated pre-tax. The total earnings per share effect of the amounts excluded from our non-GAAP earnings per share were $0.61 in FY10. Our FY11 guidance excludes $6 million of planned transformation costs and $1 million of planned integration costs, associated with the acquisition of Global Med. In total our adjusted guidance excludes $7 million of pre-tax costs and the resulting decrease of $.20 of earnings per share.