Sirona's Q1 net soars as sales grow 20 percent to $31 million

February 8, 2010 by MassDevice staff

Sirona (NSDQ:SIRO) posted first-quarter sales of $214.8 million for the three months ended Dec. 31, 2009, up 19.5 percent compared with $179.7 million during the same period in 2008. Net income rose 460 percent to $31.2 million, compared with $5.6 million during Q1 2009:

Press Release

Sirona Reports Fiscal 2010 First Quarter Results

• Revenue was $214.8 million, an increase of 19.5% compared to prior year, or up 10.9% on a constant currency basis.
• Operating income excluding amortization expense totaled $59.6 million, up 51.5% versus $39.4 million in the prior year.
• Cash flow from Operations was $40.6 million, compared to ($1.6) million in the prior year.
• Sirona updates guidance.

LONG ISLAND CITY, N.Y.--(BUSINESS WIRE)--Sirona (Nasdaq: SIRO), the dental technology leader, today announced its
financial results for the quarter ended December 31, 2009.

First Quarter Fiscal 2010 vs. First Quarter Fiscal 2009 Financial
Results

Revenue was $214.8 million, an increase of $35.1 million or 19.5% (up
10.9% on a constant currency basis), with growth rates for the Company's
business segments as follows: CAD/CAM increased 37.5% (up 29.3% constant
currency); Instruments increased 19.0% (up 6.7% constant currency);
Imaging Systems increased 9.2% (up 3.7% constant currency); and
Treatment Centers increased 12.2% (up 0.5% constant currency). Revenue
in the United States increased by 12.1% driven by the CAD/CAM and
Imaging segments. Outside the United States, revenue increased by 23.3%
(up 10.4% constant currency), driven by strength in Germany, Australia,
Canada and Japan.

Gross profit was $112.4 million, up $25.4 million compared to prior
year. Gross profit margin was 52.3% in the first quarter of fiscal 2010,
compared to 48.4% in the prior year. The gross profit margin expansion
was driven by product and regional mix and lower levels of amortization
expense.

First quarter 2010 operating income excluding amortization expense was
$59.6 million (operating income of $43.5 million plus amortization
expense of $16.2 million), compared to $39.4 million (operating income
of $21.8 million plus amortization expense of $17.6 million) in the
prior year.

Net income for the first quarter of 2010 was $31.2 million, or $0.55 per
diluted share, compared to $5.6 million, or $0.10 per diluted share in
the prior year period. First quarter 2010 earnings per share included
$0.22 of amortization and depreciation expense attributable to the
write-up in value of assets due to purchase accounting, a loss of $0.02
related to the revaluation of the Patterson exclusivity fee, and a loss
of $0.02 resulting from the revaluation of short-term intra-group loans.
For the first quarter of 2009, earnings per share included $0.22 of
amortization and depreciation expense attributable to the write-up in
value of assets due to purchase accounting, a loss of $0.03 related to
the revaluation of the Patterson exclusivity fee, a $0.02 loss resulting
from the revaluation of short-term intra-group loans and a $0.01 gain on
sale of an asset.

At December 31, 2009, the Company had cash and cash equivalents of
$215.9 million and total debt of $470.1 million, resulting in net debt
of $254.2 million. This compares to net debt of $293.8 million at
September 30, 2009. The decrease in net debt was driven by strong cash
flow from operations.

Chairman, President & CEO, Jost Fischer commented; “We are pleased with
our exceptionally strong performance in the first quarter. Sirona’s top
line growth was driven by our recent innovative product launches and our
technologically advanced product portfolio. The bottom line benefited
from robust sales growth, margin expansion, expense management
initiatives and deleveraging. We are pleased with our results and are
confident in the prospects of our business.”

Fiscal 2010 Guidance Update

The Company expects to achieve revenue growth at the higher end of its
fiscal 2010 guidance range of 4% to 6%. Operating income excluding
amortization expense is expected to be in the range of $170 to $176
million, compared to the previous range of $166 million to $176 million.

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