Zevex Medical Device Maker’s Q4 and 2005 Profits Skyrocket

Feb. 17, 2006 – The Salt Lake Tribune – Utah medical device maker Zevex International Inc. on Thursday reported record revenues and dramatic reversals from losses to profits for both its fourth quarter and fiscal 2005 earnings.
    For the quarter and year ending Dec. 31, Zevex had $9.4 million in quarterly sales, up 60 percent compared to $5.9 million for 2004’s fourth quarter. For all of 2005, the company raked in $30.3 million, a 28 percent boost from $23.6 million a year ago.
    Net income for the final quarter of the year topped $906,000, or 23 cents per diluted share, compared to a net loss of $286,000 and 8 cents the same time last year. Fiscal 2005’s net income came to $1.9 million, or 52 cents per share, following 2004’s net loss of $179,000 and 5 cents.
    Thursday’s results were released unaudited, as allowed under Securities and Exchange Commission exceptions for companies it deems exempt from the usual or “accelerated status” requirements for audited earnings. Zevex officials said during a late-Thursday teleconference that audited results would be included in their official form 10-K report to the SEC they will file in the next few weeks.
    CEO David J. McNally credited the January 2005 introduction of the new EnteraLite Infinity medical pump and its accessories for an across-the-product- line surge in sales for the year. He expects that trend to continue.
    “The outlook for 2006 is encouraging. Our domestic Therapeutics Division sales force has successfully launched the EnteraLite Infinity, achieving record pump unit sales in 2005,” he said, projecting revenue growth in fiscal 2006 in the 20 percent range.
    The results, released as markets closed, were not immediately reflected in trading numbers. Zevex shares ended at $16.13, down $2.42 and 13 percent. In after-market trading, however, investors reversed the trend, driving share prices up to $16.39 within an hour of the close.