Q1 revenues, income soar at RTI Biologics.
Merging with Tutogen Medical Inc. helped RTI Biologics Inc. boost its revenues by 36% and more than quadruple its net income in the first quarter of 2008, ended March 31.
The company reported a gross profit margin of 46%, compared with 37% for the same period last year. RTI Biologics' overall gross profit margin jumped 44% from the fourth quarter of 2007; company executives said the growth was driven by an increase in sports medicine revenues, greater productivity and higher margins for the Tutogen markets.
Growth in the company's sports medicine sector was explosive, surging 71% compared with first-quarter 2007 levels. Sports medicine implant revenues reached $9.2 million in the first quarter, compared with $5.4 million for the same period last year. About $100,000 of the revenues came from Tutogen in the month after it merged with RTI Biologics (on Feb. 27) and operated as a combined company.
"This is a very important fundamental achievement, for RTI sports medicine implants are in high demand clinically, and our direct distribution model sports medicine yields the highest return of all of our lines of implants," said Brian Hutchinson, RTI Biologics' CEO. "Quarter end shipment volumes have reached an all-time high, leaving sports medicine to become our largest revenue segment this quarter."
Other segments within the company that performed well in the first quarter included surgical specialties, which posted a triple-digit increase (166%) compared with the same period last year, and dental, which grew by 45.8%. The surgical specialty segment generated $1.6 million in revenues, while the dental sector had $3.5 million.
Revenues in the sports medicine, surgical specialties and dental sectors made up nearly half of the $29.9 million in overall revenue the company posted in the first quarter. Net income for that period was $645,000, a 381% increase compared with first-quarter 2007's net income of $134,000.
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|Title Annotation:||FINANCIAL REPORTS|
|Publication:||Orthopedic Design & Technology|
|Article Type:||Brief article|
|Date:||Jul 1, 2008|
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