|Sorin Group CEO André-Michel Ballester|
Sorin Group reported slightly higher earnings in the first quarter of 2014 with a 1.8% gain in revenues and an 18.3% bump in adjusted net profit for what was a very busy first three months of the year for the Italian devicemaker.
The Milan-based company said it earned €176.3 million ($244 million) in revenue for the quarter, and an adjusted net profit of €10.8 million ($15 million). In its earnings statement, the company also provided guidance for second quarter 2014, saying it expects revenue gains of between 3% to 5% at exchange rates comparable to 2013.
"We are satisfied with the first quarter performance, with revenues in the high-end of the guidance," André-Michel Ballester, Sorin Group CEO, said in a statement. "The cardiac surgery business continued its positive performance, driven by strong momentum in the cardiopulmonary product segments and by the penetration of Perceval."
It was a busy quarter for Sorin Group. Since the first of the year, the company entered into a joint venture with MicroPort Scientific of Hong Kong for the Chinese cardiac rhythm market (CRM) and acquired Oscor's CRM leads business, Ballester said. CRM is set to be a critical element in Sorin's 5-year plan with expectations of a 2% to 3% growth in that unit. Ballester has previously said he expects CRM sales in China to reach double digits in the "foreseeable future."
Additionally this quarter, the company received an expanded CE-mark of regulatory approval for its Perceval product, which allows for a wider range of treatment for patients with aortic stenosis or steno-insufficiency. Earlier this week, the FDA gave its approval for the use of company's Mitroflow Aortic Pericardial Heart Valve.
Gross profit for the first quarter was €104.3 million ($144 million), or 59.2% of revenues, compared to 59% of revenues for the same period last year, the company said, adding that the gain was bolstered by manufacturing efficiencies that offset lower pricing by competitors in CRM products, and more favorable exchange rates.
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