Lifecore Biomedical, Inc (LCBM) reported net sales totaling $15.7 million for the first quarter ended September 30, 2007. This net sales figure represents an increase of 5 percent over net sales that totaled $15.0 million during the first quarter of fiscal year 2007. Because of foreign currency translation increasing steadily in value over the past quarter, current quarter sales have also increased by $184,000 compared to the first quarter of the last fiscal year.
Net income also increased to $1,263,000, or $.09 per diluted share, representing an improvement from last quarter where net income was $1,139,000, or $.08 per diluted share. Income tax expense, which was reported at 39.0%, also increased from 38.5% during the company’s last fiscal statement.
Dennis J. Allingham, President and CEO, commenting on the increases, stated, “Profits for the quarter were at the high-end of our guidance, although sales were slightly below. The results reflect our focus towards strengthening our Dental sales performance, while driving the continued operating efficiency from the Hyaluronan Division.”
In particular, the Hyaluronan Division has revenue of $4.8 million, comparable to the sales figured reported. Furthermore, this division reported operating income of $943,000 during the first quarter, a slight dip due to increased costs associated with new product development.
“Higher sales to orthopedic customers and increased revenues from product development were partially offset by lower sales to ophthalmic customers,” said Dennis J. Allingham, President & CEO. “We are proceeding with our program to develop the Cleveland Clinic technology for long-term growth, while driving other development opportunities in existing segments as the interim growth vehicle.”
Even though this slit dip was realized, net sales from the company’s Dental Division were $10.8 million. This new financial data equates to an increase of 6% when comparing the fiscal data that equaled $10.2 million last year. Not only that, but domestic sales grew 9% for the quarter and operating income increased to $614,000.
“Sales of the Prima(TM) Implant System continued to drive sales growth with a significant 70% increase from the first quarter a year ago,” said Dennis J. Allingham, President & CEO. “Overall, we were pleased to see that actions taken improved the rate of sales growth, when compared to the fourth quarter of last fiscal year, particularly domestic sales. We expect to build on this momentum with the introduction of our Prima Ceramic abutment system, which was just cleared for the US market.”
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