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ARROW INTERNATIONAL, INC. REPORTS ON MEETING WITH SECURITY ANALYSTS

ARROW INTERNATIONAL, INC. REPORTS ON MEETING WITH SECURITY ANALYSTS
 READING, Pa., Nov. 6 /PRNewswire/ -- Meeting with security analysts today, Arrow International, Inc. (NASDAQ-NMS: ARRO) President and CEO Marlin Miller projected 1993 fiscal year first quarter sales in the range of $33 to $34 million with net income of $4.8 to $5.0 million.
 The midpoint of these ranges represent an increase of about 15 percent over first quarter 1992 fiscal year net sales and a gain of about 20 percent in net income, compared to normalized results for the comparable prior year period. Net income for the first 1992 fiscal year quarter included $7 million pre-tax income from a patent litigation settlement and has been restated to include a $3.4 million charge to net income resulting from the adoption of SFAS 106, "Employers' Accounting for Postretirement Benefits Other Than Pensions." Excluding these effects, net income in last year's first fiscal quarter was approximately $4.1 million.
 In the first quarter, ending Nov. 30, 1992, sales will be affected by at least $500,000 in reduced shipments to and return of inventory from discontinued dealers. Sales to these dealers totaled $8 million in FY 1992. As the year progresses, this change to direct sales will have an overall positive impact on both sales volume and gross margins.
 In addition, the company traditionally introduces new products during major fall medical meetings. Products introduced this fall will contribute to sales gains as the year progresses. Year to date quarterly sales comparisons are expected to improve as the year progresses.
 Net income in the first quarter will be affected by traditionally heavy marketing costs related to fall medical meetings and product introductions, and the start-up of Arrow France. Also, during the first quarter the company incurred unusually high legal costs associated with its defense of the patent infringement suit brought by Marc L. Catalano on the Arrow Twin-Cath(R) Peripheral Double-Lumen catheter. On Oct. 26, 1992, a jury in U.S. Federal Court in Philadelphia found the Catalano patent to be invalid, thus upholding Arrow's defense of prior invention.
 The company said it continues to see improvements in gross margins and Miller expressed optimism that full 1993 fiscal year sales and net income will meet the company's targeted growth range of 20-25 percent.
 During the meeting with analysts, Arrow announced the planned introduction of a new arterial access needle at the American Heart Association meeting in New Orleans the week of Nov. 16 and future plans to show the product at the Radiological Society of North America meeting in Chicago the first week of December. This new access needle makes possible the verification of arterial placement through observation of pulsatile pressure while at the same time containing blood flow and providing for the introduction of a guide wire through a hemostasis valve mounted on the needle handle. Patents have been applied for by the inventor and Arrow will pay a royalty on sales of the new ergonomic vascular needle (EVAN). This product addresses an arterial needle market estimated at 1.3 million units annually in the United States with an equal or greater market internationally. Unit pricing will be in the $8-$10 range with F.D.A. approval for marketing expected in December.
 At the same major medical meetings Arrow will introduce a new kink- resistant vascular access sheath designed to facilitate vascular intervention in a wide range of procedures. This new sheath has a unique construction of coiled wire within the sheath's plastic wall that provides kink resistance over a radius as small as 1/4-inch. Sheath kinking is a major problem in the exchange of catheters during interventional procedures. Arrow will pay a royalty on sales as the exclusive licensee under patents applied for by the inventor. The U.S. market for sheaths used in vascular interventional procedures is estimated at 2.5 million units annually with sheath prices ranging from $19-$40 depending on specific characteristics. F.D.A. approval for marketing is expected in January.
 The following quarterly income statement data for fiscal 1992 and 1991 was released. Fiscal 1992 data is restated to reflect the company's adoption of SFAS 106, "Employers' Accounting for Postretirement Benefits Other Than Pensions".
 Company executives reported that net sales, excluding royalty income, of the company's critical care products increased to $119.1 million in fiscal 1992, up 21.1 percent from the previous fiscal year. Interventional product net sales in the 1992 fiscal year were reported at $13.2 million, an increase of 13.3 percent over fiscal 1991. Sales of the company's products in international markets increased to 24.2 percent of net sales, excluding royalty income, in fiscal 1992, up from 23.2 percent in the prior year.
 The major purpose of the meeting was to better acquaint interested security analysts with Arrow's product lines and the company's research, marketing and manufacturing capabilities. The company's shares are traded in the over-the-counter market on the NASDAQ National Market System under the symbol ARRO.
 ARROW INTERNATIONAL, INC.
 Summary of Quarterly Results
 1992 FY (Unaudited)
 (Thousand of dollars, except per share amounts)
 Periods Quarter Quarter Quarter Quarter YTD
 ended 11-30-91 2-29-92 5-31-92 8-31-92 FY 1992
 Net Sales $29,228 $33,735 $34,443 $35,947 $133,353
 Cost of Goods Sold 15,277 17,730 18,075 18,618 69,700
 Gross Profit $13,951 $16,005 $16,368 $17,329 $63,653
 Operating expenses:
 Selling, general and
 administrative 5,670 6,402 6,677 7,420 26,169
 Research, development
 and engineering 1,836 1,921 1,942 2,480 8,179
 Operating income 6,445 7,682 7,749 7,429 29,305
 Other expenses (income):
 Patent litigation
 settlement (7,000) --- --- --- (7,000)
 Other, net (150) (517) (107) (380) (1,154)
 Income before taxes 13,595 8,199 7,856 7,809 37,459
 Provision for
 income taxes 5,085 3,066 2,938 2,921 14,010
 Income before cumulative
 effect of change
 in accounting
 principle 8,510 5,133 4,918 4,888 23,449
 Cumulative effect of
 change in accounting
 principle, net
 of tax (3,380) --- --- --- (3,380)
 Net income $5,130 $5,133 $4,918 $4,888 $20,069
 Net income per
 common share $0.24 $0.24 $0.22 $0.22 $0.92
 Summary of Quarterly Results
 1991 FY (Unaudited)
 (Thousand of dollars, except per share amounts)
 Periods Quarter Quarter Quarter Quarter YTD
 ended 11-30-90 2-28-91 5-31-91 8-31-91 FY 1991
 Net Sales $24,980 $28,175 $27,889 $30,213 $111,257
 Cost of Goods Sold 13,564 15,685 14,331 16,430 60,010
 Gross Profit $11,416 $12,490 $13,558 $13,783 $ 51,247
 Operating expenses:
 Selling, general and
 administrative 5,138 5,480 5,496 5,262 21,376
 Research, development
 and engineering 1,436 1,500 1,493 1,559 5,988
 Operating income 4,842 5,510 6,569 6,962 23,883
 Other expenses
 (income): (200) (246) 198 (80) (328)
 Income before taxes 5,042 5,756 6,371 7,042 24,211
 Provision for
 income taxes 1,686 1,925 2,123 2,364 8,098
 Net income $3,356 $3,831 $4,248 $4,678 $16,113
 Net income per
 common share $0.15 $0.18 $0.19 $0.22 $0.74
 /delval/
 -0- 11/6/92
 /CONTACT: Marlin Miller Jr., 215-478-3114, or John H. Broadbent Jr., 215-478-3116, both of Arrow International/
 (ARRO) CO: Arrow International, Inc. ST: Pennsylvania IN: HEA SU: ERN


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