Integra LifeSciences Holdings Corp. (IART) reported an EPS of 50 cents in the second quarter of 2010 compared with 38 cents in the year-ago quarter, up 31.6%. However, adjusted EPS (excluding one-time items) increased 9.7% to 68 cents, which beats the Zacks Consensus Estimate of 63 cents and 62 cents of the year-ago quarter.
Net sales for the quarter increased 8% year over year to $178.6 million, beating the Zacks Consensus Estimate of $176 million. Sales growth during the quarter reflected strong internal growth across all segments of the company. The three segments: Integra Orthopedics ($72.9 million), Integra NeuroSciences ($66.3 million) and Integra Medical Instruments ($39.5 million) grew 11.7%, 7.9% and 0.9%, respectively.
Operating income increased 3% year over year to $24.6 million in the reported quarter. Research and development expenses increased 14.6% to $11.8 million while selling, general and administrative expenses increased 8.6% to $74.3 million.
Integra LifeSciences generated $19.4 million from cash flow from operations in the first half of fiscal 2010. Capital expenditures were $5.7 million in the quarter. At the end of the second quarter, the company had $93.6 billion in cash and cash equivalents, up from $71.9 million at the end of December 2009. Integra redeemed $78 million of shares outstanding on the convertible notes with the balance remaining at $152 million as of June 2010.
Reiterates Guidance
Integra LifeSciences reiterated its 2010 revenue guidance range of $715 million – $735 million. The company also reiterated its GAAP EPS and adjusted EPS guidance range of $1.92 – $2.07 and $2.60 – $2.75, respectively.
Integra LifeSciences Holdings Corp. is a world leader in regenerative medicine. The company’s products are used primarily in neurosurgery, extremity reconstruction, orthopedics, and general surgery to treat millions of patients every year.
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