Surmodics Q4 Earnings and Revenues Beat Estimates, Margin Down

Core Points - Surmodics, Inc. reported a loss per share of 13 cents in Q4 fiscal 2024, a significant decline from the previous year's EPS of 53 cents, but better than the Zacks Consensus Estimate of a 27 cents loss by 51.9% [1] - Revenues for the quarter reached $33.2 million, reflecting an 18.8% year-over-year increase and surpassing the Zacks Consensus Estimate by 8.3% [2] Revenue Breakdown - The Medical Device segment generated $25.8 million in sales, a 22.4% increase from the prior year, with revenues excluding SurVeil DCB license fees rising 20% to $23.9 million, slightly above the projected $23.8 million [3] - Product sales in the Medical Device segment were $11.8 million, up 39% year over year, driven by the Pounce thrombectomy device platform and commercial shipments of the SurVeil DCB to Abbott [4] - IVD sales improved by 7.9% to $7.5 million, primarily due to growth in distributed antigen products and microarray slide/surface products, exceeding the projected $6.9 million [5] Financial Metrics - Total product sales amounted to $19.1 million, a 24.3% increase from the previous year, surpassing the projected $18.6 million [6] - Royalties and license fees revenues totaled $11.4 million, up 13.8% year over year, exceeding the projected $10.4 million [6] - Gross profit increased by 17.7% to $24.6 million, although gross margin contracted by 50 basis points to 74.1%, against a projected margin of 69.3% [7] Operating Expenses and Profitability - Selling, general & administrative expenses rose by 13.8% to $14.6 million, while research and development expenses remained flat at $9.7 million [7] - Adjusted operating profit was $1.1 million, reflecting a 3.4% year-over-year increase [8] Financial Position - Surmodics ended Q4 fiscal 2024 with cash and cash equivalents of $36.1 million, down from $38.2 million at the end of Q3 [8] - Total long-term debt was reported at $29.6 million, with net cash provided by operating activities decreasing to $0.2 million from $10.5 million a year ago [8] Acquisition Update - Surmodics is in the process of being acquired by GTCR, with the deal expected to close by March 31, 2025, after receiving shareholder approval [9]