Exactech ($EXAC) says its focus on Asian and Latin American markets for its hip and shoulder implants helped significantly boost revenue in the first quarter. Net income, however, remained essentially flat.
The Gainesville, FL-based enterprise said its hip implant revenue grew 37% in the quarter, reaching $11 million. Similarly, extremity implant revenue (mostly shoulder-related products) grew to $13 million, also a 37% jump. Overall, the company booked $58.6 million in revenue in the quarter, up 10% versus a year earlier.
Asian and Latin American markets helped drive the overall growth, particularly with hip implant sales, Bill Petty, Exactech chairman and CEO, said in a statement. And the company acknowledged that international revenues are becoming a bigger piece of the pie--jumping 19% to nearly $22 million.
Of course, not every product line soared. Knee implant revenue grew just 1% in the quarter, to $21.5 million, and biologic and spine revenue dropped 13% to $6.2 million, according to the results. Meanwhile, net income stayed essentially flat, coming in at $3.3 million, or 25 cents per diluted share, versus $3 million, or 22 cents per diluted share, a year earlier.
A year ago, Exactech made headlines after one of its former sales reps pleaded guilty to setting up a kickback scheme to encourage surgeons to use the company's hip and knee implants. The individual faced 5 years probation and $56,000 in fines.
- read the release