Sirona gains despite flat profits

February 14, 2013 by MassDevice staff

Dental device company Sirona Medical Systems reports 1st-quarter sales of 5.5% and flat profit growth.

Sirona Dental Systems (NSDQ:SIRO) reported flat profits for its fiscal 1st quarter, but that didn't faze investors, who sent share prices up nearly 4% this week.

The Long Island City, N.Y.-based dental technology company posted profits of $38.3 million, or 68¢ per share, on sales of $272.4 million for the 3 months ended Dec. 31, 2012. That compares with Q1 2012 profits of $38.3 million, or 67¢ per share, on sales of $258.1 million.

Adjusted to exclude, 1-time items, earnings per share were 94¢, well ahead of the 68¢ expected by Wall Street analysts. SIRO shares were up 3.6% as of about 3 p.m. today, to $72 apiece, since Sirona reported its earnings Feb. 8.

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It was the last such release for departing chairman & CEO Jost Fischer, who's slated to be replaced by president Jeffrey Sloving this month.

"It is extremely gratifying for my last quarter as CEO of Sirona to leave on such a high note, reporting a record first quarter. The Company is in an excellent position," Fischer said in a statement. "Revenue growth was extremely strong in the U.S., up 29.0%, positively impacted by our expanded exclusivity agreement with Patterson, strong demand for our CAD/CAM and Imaging products, and the anticipated implementation of the Medical Device Tax in 2013. Sales outside the U.S. were impacted by prioritization of shipments, but we are seeing strong order intake and we expect to see it reflected in our sales beginning next quarter."

The company thinks 2013 will continue to look up, anticipating 9%-11% sales growth and EPS growth of 10%-13%, or $3.33-$3.43.