Strong sales of its core product lines and contributions from a relative newcomer helped carry LeMaitre Vascular Inc. to its third profitable quarter in a row.
The Burlington, Mass.-based maker of vascular devices and implants posted $925,000 in second-quarter net income on $12.6 million in sales during the three months ended June 30. That compares with a $926,000 net loss during the year-ago period, when LeMaitre generated $12.7 million in sales.
Company officials attributed the good showing to cost-saving efforts and higher gross margins, as well as continued quarter-over-quarter sales gains.
“When you’re coming up with more ways to save money along with growing sales, it’s probably not surprising that you’re going to get better results,” president David Roberts said.
But the company is not cutting back on its sales initiatives, adding four new hires during the quarter. That increased the sales team to 54 members; Roberts said it’s likely the firm will continue to “selectively add new reps as needed” this year.
During the quarter, the company began direct distribution of its Albograft vascular graft into hospitals in Europe, ending a brief collaboration with Edwards Lifesciences AG. LeMaitre also expanded its distribution of the PeriPatch, a bovine-tissue surgical patch now for sale in Europe after receiving CE Mark certification earlier this year.
Combined sales of Albograft and PeriPatch, produced by Vancouver, B.C.-based Neovasc Inc., added $420,000 to LeMaitre revenues during the quarter.
Founder and CEO George LeMaitre said the company also remains on the hunt for new product offerings, noting that the firm typically makes one company acquisition each year.
“We’re always got an eye out for appropriate targets,” even though the current market is somewhat pricey, LeMaitre said. The reason potential acquisitions are relatively expensive right now is because larger companies such as Medtronic Inc. and Covidien Ltd. are paying top dollar to complete deals, prompting the smaller companies that LeMaitre normally considers to lift their asking prices as well.
Still, LeMaitre said, “At some point soon, I think people can expect that we’ll do another deal for the right company at the right price.”