SurModics Inc. (NSDQ:SRDX) announced today that it will reduce its workforce by about 9 percent, starting with its executive team.
Senior VP and CFO Philip Ankeny was "included in the reduction," and his CFO responsibilities shifted to current senior director and general manager Timothy Arens on an interim basis.
The company’s VP of human resources Jan Webster was also let go, and her duties were assumed by Bryan Phillips, currently senior VP of legal and human resources as well as general counsel & secretary.
"This is a critical transition for SurModics to implement the components of our strategic plan that focus and position our business for maximum long-term success," president & CEO Gary Maharaj said in a press release. "While a workforce reduction is always a very difficult decision, it was necessary to enable us to achieve our objectives. We thank our affected employees for their contributions and wish them well in their future endeavors."
The Eden Prairie, Minn.-based drug delivery device maker reportedly employed 215 people at last count in 2010.
SurModics’ third quarter results, published earlier this month, showed stellar growth in profits despite a modest decline in revenues. Sales were down 3 percent in the three months ended June 30 to $18 million, compared to $18.6 million for the same period last year.
Medical device revenues sank 18 percent from Q3 2010, posting at $9.6 million compared to last year’s $11.7 million.
Nevertheless, revenues leapt out of the red, coming in at $3.8 million, or 22 cents per diluted share, compared to losses of $920,000, or 5 cents lost per diluted share, during the same time last year.
"[W]e were pleased with the underlying momentum of the business, led by
the signing of five new license agreements in our Medical Device business including
some in high growth strategic areas for SurModics, as well as the recent launch of our
new assay diluent product in our IVD business," Maharaj wrote in the report. "Having defined our core business in a
crisp and clear manner, we are now actively implementing our strategic plan and are
confident in our ability to reach our revised financial targets for the fiscal year."
SurModics stock was up 4 percent to $10.42 at the end of the day yesterday, prior to the workforce reduction announcement.
The company’s share price sank 17 percent in June on news that Johnson & Johnson (NYSE:JNJ) would stop making the Cypher and Cypher Select Plus stents by the end of the year, two technologies that SurModics licenses.
While analysts predicted that the impact of JNJ’s exit from the stent market would not be severe for SurModics, share prices have yet to regain lost ground. Prior to JNJ’s announcement, SRDX stock closed at $13.30, sinking hard to $11.01 on the news and reaching only as high as $12.06 since.
MassDevice keeps a close eye on public medical device companies, tracking their quarterly sales and earnings reports. For the most recent filings, check out our Earnings Roundup, where we collect each quarter’s reports.
Here’s a quick rundown of a few releases over the past couple days:
Vycor losses soar as sales spike
Boca Raton, Fla.-based Vycor Medical Inc. (OTC:VYCO) released its quarterly report after recently restating its financials for several quarter over the past couple years. The new report shows a big spike in sales and an even bigger spike in losses during the three months ended June 30.
The company posted a 90 percent increase in sales to $142,000, compared to $75,000 during the same period last year.
Company losses spiked 337 percent to $1.8 million, or a loss of 0.2 cents per diluted share, compared to $410,000 lost, or a loss of 0.1 cents per diluted share in Q2 of 2010.
Urologix sinks deeper into the red
Urologix Inc. (NSDQ:ULGX) saw tough times in the three months ended June 30. The San Diego, Calif.-based urologic disorder treatment device company posted a 12 percent decrease in sales to $2.9 million, compared to $3.3 million during the same period last year.
Company losses widened 86 percent to $1.3 million, or a loss of 9 cents per diluted share, compared to $700,000 lost, or a loss of 4 cents per diluted share in Q2 of 2010.
The fiscal year didn’t look much better for Urologix. Sales for the 12 months sank 15 percent to $12.6 million compared to $14.8 million for FY 2010. Losses for the year widened to $3.7 million, or a loss of 26 cents per diluted share, compared to a fiscal year 2010 loss of $2.2 million, or 26 cents lost per diluted share.
MedPro shows progress in Q2
MedPro Safety Products Inc. saw progress in the three months ended June 30. The Lexington, Ky.-based drug delivery and blood collection company posted a $641,000 in sales to $XXXX million, compared to no revenue during the same period last year.
Company losses narrowed 14 percent to $2.9 million, or a loss of 22 cents per diluted share, compared to $3.4 million, or a loss of 26 cents per diluted share in Q2 of 2010.