BRAINTREE, Mass., May 1 Haemonetics Corporation(NYSE: HAE) today reported fourth quarter fiscal 2008 GAAP net revenues of$139 million, up 19%; operating income of $20 million, down 21%; and netearnings per share of $0.52, down 29%. The Company also reported fiscal yearend 2008 GAAP net revenues of $516 million, up 15%; operating income of$70 million, up 12%, and net earnings per share of $1.94, up 9%.
Excluding charges in both fiscal 2007 and 2008 and a legal settlement andcertain tax benefits in 2007, fourth quarter fiscal 2008 adjusted operatingincome was $23 million, up 10%, and adjusted earnings per share were $0.58,level with prior year. Full year 2008 adjusted operating income was$77 million, up 10%, and adjusted earnings per share were $2.10, up 10%.(1)
Brad Nutter, Haemonetics' Chairman and CEO, said, "I am pleased to reportfour consecutive quarters of double digit revenue growth and double digitgrowth in adjusted operating income and adjusted earnings per share for theyear. Growth continues to come from strength across multiple product lines andgeographies, and we have a positive outlook for all these markets."
"In the year, we made good strides in our vision to be the global leaderin blood management solutions for our customers. We introduced several newproducts in both the blood bank and hospital markets. We acquired a new devicefor patient blood management and a consulting and information technologyplatform for hospital blood management. Haemonetics now provides customerswith a value proposition that includes the most extensive depth and breadth ofdevices, services, and information technology platforms across the blood bankand hospital markets."
In addition to revenues and earnings per share, Haemonetics reportedfourth quarter gross profit of $70 million, up 20%, and gross margin of 50.6%,up 70 basis points. For the year, gross profit was $258 million, up 13%, andgross margin was 49.9%, down 70 basis points. Gross margin was impacted byproduct mix as lower gross margin contributors, plasma and equipment, had verystrong sales growth.
Adjusted operating expenses were $47 million in the quarter, up 26%, and$181 million for the year, up 15%. Nearly half of the year's increase camefrom three areas: 1) planned enterprise resource planning ("ERP") spending; 2)the acquisitions of IDM, Infonale, and Haemoscope, whose expenses were notincluded in most of fiscal 2007 financial results; and 3) continued investmentin Arryx R&D.
Haemonetics' tax rate was 35.5% in the quarter and 32.8% for the year. Inthe year, Haemonetics benefited from resolution of certain tax contingencies.
Haemonetics ended the year with a cash balance of $134 million, and $12million of debt. During the year, the Company generated $76 million of cashflow from operations and invested $57 million in capital expenditures toinvest in ERP, the plasma business, and software development. In the year, theCompany invested $75 million in a share repurchase and $46 million onacquisitions.
EXPANDING THE BUSINESS
Haemonetics continues to make progress expanding the business. TheCompany reported the following highlights during the fiscal year just ended:
ANNUAL PRODUCT LINE GROWTH
Among the product lines, plasma disposables revenue was $40 million forthe quarter, up 32%. Annual plasma disposables revenue was $155 million, up22%. Plasma disposable sales benefited from continued growth in U.S. andEuropean plasma collections as well as from Haemonetics' collection growth atnew customer sites. Haemonetics expects that growth in the plasma market willcontinue to drive strong plasma sales for the next several years.
Blood bank disposables revenue was $36 million for the quarter, up 11%.Annual blood bank disposables revenue was $136 million, up 8%. Blood bankgrowth was driven by strong sales in