Stryker Corp. (NYSE:SYK) closed 2009 on a high note, according to its preliminary sales figures, with revenues rising nearly 7 percent during the three months ended Dec. 31.
The Kalamazoo, Mich.-based medical device maker said sales for the full year were flat, rising 0.1 percent to $6.72 billion compared with 2008. Stryker’s deal with Acacia Research Corp. (NSDQ:ACRI) subsidiary Hospital Systems Corp. to license the latter’s medical picture archiving and communication system technology resulted in the settlement of a patent infringement lawsuit — and a net gain of $43 million for Stryker.
The company also “repatriated” $787 million in foreign earnings to the United States to help pay for its $525 million acquisition of Ascent Healthcare, meaning it will incur an additional $70 million in income tax, according to a press release.
Stryker said it expects diluted net earnings per share of between $2.75 and $2.78 for dfiscal 2009, flat or down compared with $2.78 in 2008. Excluding the bump from settling the patent litigation, the increased income tax and restructuring charges (which amounted to $48 million during the third quarter), adjusted diluted net earnings per share for 2009 are expected to be between $2.94 and $2.96, up 4 percent to 5 percent over the $2.83 Stryker posted in 2008.
The company said it expects sales growth of 5 percent to 8 percent this year on strong revenue growth from its orthopedic implant and MedSurtg divisions. Stryker projected diluted net earnings per share for the year of between $3.20 and $3.30. The company plans to release its full Q4 and 2009 sales and earnings numbers Jan. 26.