Medical device maker Orthofix (NSDQ:OFIX) posted huge growth for its bottom line in both the 4th quarter and full year of 2012, but reported sliding sales and projected slow growth for the year ahead.
The Lewisville, Texas-based company posted profit of $20.5 million, or $1.04 per diluted share, on sales of $112 million during the 3 months ended Dec. 31, 2012.
That represents a 65.5% spike in profit but a 9% decrease in sales compared with the same period in 2011, when the company posted $12.4 million in earnings, or 66¢ EPS, on sales of $123.1 million.
Adjusted for 1-time expenses, 4th-quarter earnings amounted to 81¢ per share, right in line with analysts’ expectations.
Orthofix suffered hits to both its total spine and orthopedic divisions, according to the earnings release. Orthopedics were hit particularly hard, with 4th-quarter sales sinking 18% compared with the same time in 2011.
"This decrease was primarily due to regulatory and macroeconomic conditions in certain international markets, which included mandatory price reductions for public hospitals in Italy, cancellation of reimbursement by the government on Physio-Stim in France, and a delay of surgeries by government hospitals and insurance providers," according to the report.
For the year ahead, Orthofix projected sales growth between 1% and 3% compared with 2012, with net income in the range of $2.84-$2.94 per diluted share.
The device maker also projected that it’s 2013 medical device tax obligation would amount to between $2-$3 million, interim CFO Emily Buxton told investors during a conference call yesterday.