Haemonetics ($HAE) continued to benefit in its fiscal 2014 first quarter from some major 2012 acquisitions, but the maker of blood management devices and related technology lost money as it absorbed costs relating to M&A as well as a manufacturing and distribution revamp.
Net revenue for the Massachusetts company reached $219.5 million, up more than 24% from the nearly $176.5 million generated over the same period last year. But the company lost $7.9 million, in large part to merger-related costs. That contrasts with nearly $9.8 million in net income in the fiscal 2013 first quarter.
Revenue grew, in part, in North America, but dipped in Europe, parts of Asia and Japan as the company shifted its distribution plans, faced exchange rate issues and dealt with unexpected market challenges.
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| CEO Brian Concannon |
Brian Concannon, Haemonetics' president and CEO, said in a statement that the company expected some declines, in part because of the loss of a big European customer and the distribution revamp. But lower than expected surgical blood use and collections surprised the company.
"Lower than expected surgical blood use and resulting lower blood collections both reduced revenue further," Concannon said. "Blood management is driving these trends and, as the leader in providing blood management solutions, our focus is on continuing to capture share as this market transforms."
Some highlights: Diagnostics revenue jumped 17% year-over year, in a sector that is small but growing fast. But surgical disposables revenue dove 12%, due in part to softer-than-expected market conditions and competitive pressures. On the other hand, North American plasma disposables revenue grew 11%.
The company said it expects to complete absorbing its acquisitions by the second quarter, and manufacturing revamps should continue over the next three fiscal years. In 2012, Haemonetics snatched up Pall's blood collection, filtration and processing systems and related equipment for $551 million, and paid $27 million for the assets of Hemerus Medical in Minnesota. In May, the company announced it would close a Braintree, MA, plant and eliminate 320 jobs, but expand operations in Mexico and Asia.
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