Merit Medical Reports Double-Digit Gains for Q2

Merit Medical Systems Inc, the South Jordan, Utah-based manufacturer and of proprietary disposable medical devices used in interventional and diagnostic procedures, had a record second quarter.

The company booked $91.2 million in revenue for the quarter (ended June 30) an increase of 22 percent compared with revenue of $75 million for the same period last yeat. Thus far, with half the year complete, revenue isa record $177.9 million, compared with $142.4 million for the corresponding period in 2010, a gain of 25 percent.
 

Merit’s non-GAAP net income for the second quarter (adjusted to eliminate non-recurring costs attributable to Merit’s acquisition of BioSphere Medical, Inc., and amortization of intangible assets) was $7.9 million (another record), or 21 cents per share, compared to $6.9 million, or 19 cents per share. Amortization of intangibles was $1.5 million before tax. The non-recurring acquisition costs, attributable to the BioSphere acquisition include legal, accounting and stepped-up inventory costs of $143,000, before tax, for the quarter.

GAAP net income for the quarter was up 21 percent to $6.9 million, compared to $5.7 million for the comparable quarter of 2010. GAAP net income for the first six months of the year was a record $13.5 million, compared to $10.2 million for the first half of 2010.

“Over the years, Merit has invested in international infrastructure as well as various business units,” said Fred P. Lampropoulos, Merit’s chairman and CEO. “Those investments are paying off and propelling strong growth, despite a slowdown of procedures in the United States. Specifically, our sales growth in China, as well as our European and worldwide dealers, are driving growth. We will start sales efforts in our new Hong Kong office over the next 30 days where Merit’s entire line of products will be available for sale.”

The company’s Endotek division (non-vascular stent technology with inflation devices, guide wires, and other accessories) increased sales 23 percent for the first six months of the year. Catheter sales grew 17 percent; stand-alone device sales rose 16 percent; custom kit and tray sales increased 14 percent; and inflation device sales grew 11 percent.