Surmodics(US:SRDX)2024-05-01 11:00Financial Performance - Total revenue for Q2 FY2024 was $32.0 million, an increase of 18% year-over-year, with revenue excluding SurVeil DCB license fee revenue at $30.9 million, up 19% year-over-year [4]. - Total revenue for Q2 FY2024 was $31.96 million, a 17.5% increase from $27.20 million in Q2 FY2023 [28]. - The company raised its fiscal 2024 revenue guidance to a range of $122 million to $124 million, reflecting an improved outlook compared to previous guidance [13]. - Fiscal 2024 total revenue excluding SurVeil DCB license fee revenue is now expected to increase by 15% to 17% compared to fiscal 2023 [13]. - The company expects total revenue growth for FY2024, excluding SurVeil DCB license fees, to accelerate compared to FY2023 [24]. - The company expects total revenue for fiscal year 2024 to be between $122 million and $124 million, representing a decrease of 8% to 6% from $133 million in fiscal 2023 [42]. Segment Performance - Medical Device segment revenue grew by 26% year-over-year to $24.8 million, driven by a 40% increase in product sales to $11.1 million [8]. - Medical Device revenue for Q2 2024 reached $24,826 million, a 26% increase from $19,707 million in Q2 2023 [34]. - Product sales reached $18.10 million, up 17.8% from $15.35 million in the same quarter last year [28]. - Medical Device product sales for the first half of 2024 were $23,050 million, a 41% increase from $16,294 million in the same period of 2023 [34]. - In Vitro Diagnostics revenue for Q2 2024 was $7,132 million, a decrease of 5% from $7,491 million in Q2 2023 [34]. Profitability and Income - GAAP net income for Q2 FY2024 was $0.2 million, compared to a net loss of $(7.7) million in the same period last year, marking a significant turnaround [11]. - Net income for Q2 FY2024 was $0.25 million, compared to a net loss of $7.73 million in Q2 FY2023 [28]. - Operating income improved to $0.66 million from a loss of $6.58 million year-over-year [28]. - Total operating income for Q2 2024 was $659 million, compared to a loss of $6,583 million in Q2 2023 [36]. - The company reported a net income of $247 million for Q2 2024, a turnaround from a net loss of $7,733 million in Q2 2023 [38]. Cash Flow and Assets - Cash flow from operations exceeded $7 million in Q2 FY2024, with cash and investments totaling $41 million at the end of the quarter [3]. - Cash and cash equivalents decreased to $33.03 million from $41.42 million at the end of FY2023 [30]. - Total assets as of March 31, 2024, were $182.81 million, down from $185.73 million at the end of FY2023 [30]. Cost Management - Operating costs decreased by 14% year-over-year to $24.2 million, primarily due to lower research and development expenses [10]. - Research and development expenses were $10.23 million, a decrease from $12.92 million in the prior year [28]. New Product Launches - Surmodics announced the commercial launch of two new thrombectomy devices: Pounce Venous and Pounce LP, following successful limited market evaluations [3]. - Surmodics is focused on enhancing its vascular interventions portfolio, including the adoption of SurVeil DCB products and Pounce thrombectomy products [24]. Adjusted Metrics - Adjusted EBITDA for Q2 FY2024 was $4.8 million, compared to an adjusted EBITDA loss of $(1.5) million in Q2 FY2023 [11]. - The company reported a non-GAAP operating income of $1.54 million for Q2 FY2024, compared to a loss of $5.83 million in Q2 FY2023 [26]. - Adjusted EBITDA for Q2 2024 was $4,809 million, a significant increase of $6,311 million compared to a loss of $1,502 million in Q2 2023 [38]. - Non-GAAP diluted EPS for fiscal year 2024 is projected to be between $(0.67) and $(0.47) [44]. Other Financial Information - Surmodics recognized revenue from SurVeil DCB license fees under the Development and Distribution Agreement with Abbott [1]. - Adjusted EBITDA calculations are provided in the GAAP to Non-GAAP Reconciliation section [2]. - Product gross profit is calculated as product sales minus product costs, with product gross margin expressed as a percentage of product sales [3]. - Non-GAAP net income and Non-GAAP diluted EPS calculations are detailed in the GAAP to Non-GAAP Reconciliation section [4]. - Restructuring expenses in Q2 fiscal 2023 included severance and related costs due to workforce restructuring [5]. - Amortization of business acquisition-related intangible assets significantly impacts net income, with a portion being non-deductible for tax purposes [6]. - Net income adjustments account for income tax benefits and expenses, estimated using applicable statutory rates of 21% in the U.S. and 12.5% in Ireland [7]. - For the six months ended March 31, 2024, diluted weighted average shares outstanding were 14,127 for GAAP EPS and 14,172 for Non-GAAP EPS [8]. - Surmodics has data on file regarding the Pounce Thrombectomy System for treating peripheral arterial occlusions [9].