Q2 2024 Surmodics Inc Earnings Call Transcript
Key Points
- Surmodics Inc (SRDX) reported an 18% year-over-year increase in total revenue, reaching $32 million in the second fiscal quarter.
- The Medical Device segment of Surmodics Inc (SRDX) saw a significant revenue increase of 26% year-over-year, driven primarily by a 40% increase in product sales.
- Surmodics Inc (SRDX) achieved a notable improvement in profitability, transitioning from a GAAP net loss to GAAP net income, alongside a $6.3 million increase in adjusted EBITDA.
- Cash flow from operations was robust at $7.4 million for the quarter, exceeding expectations partly due to a $3.4 million cash tax refund from the IRS.
- Surmodics Inc (SRDX) successfully advanced key strategic objectives, including the commercialization of new products like the SurVeil DCB, Pounce thrombectomy, and Sublime radial access products.
- Revenue from the In Vitro Diagnostics (IVD) segment decreased by 5% to $7.1 million, reflecting a challenging comparison with a strong prior year quarter.
- The SurVeil drug-coated balloon (DCB) license fee revenue presented a headwind, decreasing by approximately $240,000 year-over-year.
- Product gross margin decreased to 60.8% from 62.6% in the prior year period, impacted by under absorption and production inefficiencies.
- R&D expenses, while lower, indicate a shift in spending that could impact future innovation velocity.
- Despite overall growth, the dependency on a few key products and segments for revenue performance could pose risks if market dynamics shift.
Welcome, everyone, to Surmodics' Second Quarter of Fiscal Year 2024 Earnings Call. Please note that this call is being webcast. The webcast is accessible through Investor Relations section of the Surmodics website at www.surmodics.com, where an audio replay will be archived for future reference. An earnings press release disclosing Surmodics' quarterly and full year results was issued earlier today and is available on the company website as well.
Before we begin, I would like to remind everyone that remarks in response to your questions on today's call may contain forward-looking statements. These forward-looking statements are covered under the safe harbor provisions of the Private Securities Litigation Reform Act of 1995 and include statements regarding Surmodics' future financial and operating results or other statements that are not historical facts.
Please be advised that actual results could differ materially from those stated or implied by Surmodics' forward-looking statements resulting from certain risks and
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