Collagen Corp. reports second quarter results; EPS of 24 cents, up 85%, and Revenues of $18.9 million, up 11%.PALO ALTO Palo Alto, city, California Palo Alto (păl`ō ăl`tō), city (1990 pop. 55,900), Santa Clara co., W Calif.; inc. 1894. Although primarily residential, Palo Alto has aerospace, electronics, and advanced research industries. , Calif.--(BUSINESS WIRE)--Jan. 19, 1995--Collagen Corporation Thursday Thursday: see week. reported net income of $2.2 million, or $0.24 per share, on revenues of $18.9 million for the second quarter of fiscal 1995, compared with net income of $1.3 million, or $0.13 per share, on revenues of $16.9 million for the prior-year quarter. This represents an 85 percent increase in earnings per share and an 11 percent increase in revenues over the prior-year period. Operating income Operating Income The profit realized from a business' own operations. Notes: This would not include income from things such as investments in other firms. Also referred to as operating profit or recurring profit. was approximately $3.4 million for the quarter ended Dec. 31, 1994, a 69 percent increase compared with operating income of $2.0 million for the prior-year second quarter. During the quarter, selling, general and administrative ("SG&A") expenses were down as an approximate percentage of sales from 45 percent to 43 percent, compared with the same prior-year period, while research and development ("R&D") expenses were down as an approximate percentage of sales from 14 percent to 13 percent. Compared with the prior-year period, SG&A expenses increased in absolute dollars by approximately six percent, to $8.1 million, while R&D expenses increased by approximately seven percent, to $2.5 million. Worldwide dermatology dermatology (dûrmətŏl`əjē), branch of medicine concerned with diagnosis and treatment of diseases and disorders of the skin. and plastic surgery product revenues for the fiscal 1995 second quarter were approximately $14.0 million, up 20 percent over the $11.7 million recorded in the prior-year second quarter. Revenues for the second quarter were positively impacted by approximately $418,000 of favorable fa·vor·a·ble adj. 1. Advantageous; helpful: favorable winds. 2. Encouraging; propitious: a favorable diagnosis. 3. foreign exchange rate movements, compared with the prior-year second quarter. Unit sales unit sales Sales measured in terms of physical units rather than dollars. Unit sales data are often used by financial analysts when evaluating the health of a company. increased approximately 16 percent on a worldwide basis during the second quarter compared to the same prior-year period. "Our international dermatology and plastic surgery business hit a record high in unit sales this quarter and on a worldwide basis we have seen double digit Noun 1. double digit - a two-digit integer; from 10 to 99 integer, whole number - any of the natural numbers (positive or negative) or zero; "an integer is a number that is not a fraction" growth in U.S. dollars during the last two quarters. We have reported significant progress in our financial performance over the last seven quarters, and delivered consistent improvement in operating margins Operating Margin A ratio used to measure a company's pricing strategy and operating efficiency. Calculated by: ," stated Howard Howard, English noble family. Landowners in Norfolk from the 13th cent., the Howards obtained the duchy of Norfolk through the marriage of Sir Robert Howard to Margaret Mowbray, daughter of Thomas Mowbray, 1st duke of Norfolk. D. Palefsky, Collagen collagen (kŏl`əjən), any of a group of proteins found in skin, ligaments, tendons, bone and cartilage, and other connective tissue. Cells called fibroblasts form the various fibers in connective tissue in the body. Corporation's president and chief executive officer. "We are pleased with these accomplishments and we will be working to continue this momentum." Fiscal second quarter revenues from Contigen Implant implant /im·plant/ (im-plant´) to insert or to graft (tissue, or inert or radioactive material) into intact tissues or a body cavity. totaled $4.0 million, comprised of approximately $3.0 million in shipments to Bard bard, in Wales, term originally used to refer to the order of minstrel-poets who composed and recited the poems that celebrated the feats of Celtic chieftains and warriors. during the quarter and approximately $1.0 million in revenue derived from sales by Bard to physician customers. This $4.0 million total compares to $4.4 million of Contigen Implant revenues from stocking orders to Bard during the fiscal 1994 second quarter. Contigen Implant was introduced to the market late in the prior year second quarter; therefore, Collagen Corporation did not record any revenue based on sales by Bard to physician customers during this period. As previously reported, Collagen Corporation has been shipping and expects to continue to ship relatively level amounts of Contigen Implant to Bard on a quarterly basis throughout fiscal 1995. "Contigen Implant has been on the market for a full year now and market acceptance has been outstanding," stated Palefsky. "To date, almost 3,900 physicians have been trained in the use of Contigen Implant, over half of whom have utilized the product in their practices, and we believe calendar year end-market sales of the product will fall within analysts' expectations when Bard announces results shortly." Collagen Corporation's share of sales made by Bard to physician customers increased this quarter from 5 to 10 percent. During December December: see month. 1994, Bard received regulatory clearances to market Contigen Implant in France and Japan, with product launches planned during the first half of calendar 1995. Combined second quarter revenues from sales of Collagraft Bone Graft bone graft Orthopedic surgery Sterilized bony tissue, often of cadaveric origin, used to fill and/or 'sculpt' bone defects Indications Spinal fusion, revision of failed articular prostheses, filling traumatic or malignant bone defects, or periodontal defects. Matrix and Collagraft Bone Graft Matrix Strip were $605,000, an increase of 34 percent over the prior-year second quarter revenues. Because of higher-than-expected shipments of the Collagraft Implant and Strip products during the first quarter of fiscal 1995, fiscal third quarter shipments are expected to be at a level similar to those reported in the second quarter. During the second quarter of fiscal 1995, Collagen Corporation repurchased 172,000 shares of its common stock in the open market at an average price of approximately $22.00 per share, completing the authorization The right or permission to use a system resource; the process of granting access. See access control. granted by the Board in February 1994, and the Board of Directors authorized au·thor·ize tr.v. au·thor·ized, au·thor·iz·ing, au·thor·iz·es 1. To grant authority or power to. 2. To give permission for; sanction: the repurchase re·pur·chase tr.v. re·pur·chased, re·pur·chas·ing, re·pur·chas·es To buy (something) again. n. The act of buying something that one previously sold or owned. Noun 1. of an additional 300,000 shares in the open market. Since the inception of the stock repurchase Stock repurchase A firm's repurchase of outstanding shares of its common stock. program in February 1993, the aggregate total of shares repurchased through December 31, 1994 was 1.2 million shares or in excess of 10 percent of the total shares outstanding prior to inception of the program. During the first quarter, the Board of Directors authorized the sale of a portion of the company's holdings in Target Therapeutics therapeutics Treatment and care to combat disease or alleviate pain or injury. Its tools include drugs, surgery, radiation therapy, mechanical devices, diet, and psychiatry. , Inc. with the objective of generating cash for, among other things, further investments in both current and new affiliate companies. Collagen Corporation began this program during the fiscal second quarter and sold 35,000 shares for a pre-tax gain of approximately $775,000. Collagen Corporation is a technology-based company that develops, manufactures and markets biomedical bi·o·med·i·cal adj. 1. Of or relating to biomedicine. 2. Of, relating to, or involving biological, medical, and physical sciences. devices for the treatment of defective defective adj. not being capable of fulfilling its function, ranging from a deed of land to a piece of equipment. (See: defect, defective title) , diseased dis·eased adj. 1. Affected with disease. 2. Unsound or disordered. , traumatized or aging human tissues. -0-
COLLAGEN CORPORATION
CONSOLIDATED STATEMENT OF INCOME
(Unaudited)
(in thousands, except per share amounts)
Three Months Ended Six Months Ended
December 31, December 31,
-------------------- ----------------
1994 1993 1994 1993
-------- -------- ------- -------
Revenues:
Product sales $ 18,870 $ 16,930 $ 34,302 $ 30,238
Other -- -- 1,000 1,000
------- -------- ------- -------
18,870 16,930 35,302 31,238
Cost and expenses:
Cost of sales 4,810 4,892 9,216 8,590
Research & Development 2,504 2,339 5,038 4,565
Selling, general &
administrative 8,107 7,664 15,331 14,292
------ ------ ------- ------
15,421 14,895 29,585 27,447
Income from operations 3,449 2,035 5,717 3,791
Other income (expense):
Gain on sale of Target
stock 775 -- 775 --
Equity in earnings
(losses) of affiliates (240) 235 (369) (37)
Interest income 85 114 215 283
Interest expense (40) -- (55) --
------- ------- ------- -----
Income before income taxes 4,029 2,384 6,283 4,037
Provision for income
taxes 1,784 1,113 2,731 2,000
------- ------ ------ -----
Net income $ 2,245 $ 1,271 $ 3,552 $ 2,037
======== ======== ======== =======
Net income per
share $ .24 $ .13 $ .37 $ .20
======== ========= ======== ========
Shares used in
calculating per share
information 9,465 9,992 9,517 10,031
======== ======= ======== ======
COLLAGEN CORPORATION
CONDENSED CONSOLIDATED BALANCE SHEET
(In thousands)
December 31, June 30,
1994 1994
----------- ----------
(Unaudited) (Note 1)
ASSETS
Current assets:
Cash, cash equivalents and
short-term investments $ 9,597 $ 12,736
Accounts receivable, net 11,963 12,241
Inventories 3,892 3,861
Other current assets 4,309 3,305
------ ------
Total current assets 29,761 32,143
Property and equipment, net 16,709 17,108
Intangible assets 2,257 2,243
Investments & other assets, principally
Target Therapeutics, Inc. 24,999 23,011
------ ------
$ 73,726 $ 74,505
====== ======
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable $ 1,487 $ 1,420
Accrued liabilities 9,415 10,245
Income taxes payable 5,279 4,251
------ ------
Total current liabilities 16,181 15,916
Long-term liabilities
Deferred income taxes 8,240 8,240
Other long-term liabilities 1,433 1,267
------ ------
Total long-term liabilities 9,673 9,507
Stockholders' equity:
Common stock 62,942 61,276
Retained earnings 11,901 9,234
Treasury stock (26,971) (21,428)
------ ------
Total stockholders' equity 47,872 49,082
------ ------
$ 73,726 $ 74,505
====== ======
Note 1 -- Derived from audited financial statements at that date. CONTACT: Collagen Corporation David Foster  This article or section resembles a .Please help [ improve this article] by removing excessive trivia, irrelevant praise and criticism, lists and collections of links that are of . , 415/856-0200 Edelman Ed·el·man , Gerald Maurice Born 1929. American biochemist. He shared a 1972 Nobel Prize for research on the chemical structure and nature of antibodies. Public Relations public relations, activities and policies used to create public interest in a person, idea, product, institution, or business establishment. By its nature, public relations is devoted to serving particular interests by presenting them to the public in the most Matthew Harrington, 415/433-5381 |
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