Exactech develops and markets orthopedic implant devices, related surgical instruments and biologic materials and services to hospitals and physicians. Previous announcements had claimed earnings estimates of $0.21-$0.23 diluted earnings per share. These estimates are being revised to reflect the new estimate of approximately $0.15 diluted earnings per share. Even though there is a reduction in revenue guidance, Exactech management remains strong in their anticipation for continued company growth. Conference call for all interested investors has been set for October 29th at 10:00am EST.
Exactech CEO Dr. William Petty said, “Although our domestic sales were softer than expected for the third quarter, we are still pleased that we will be reporting revenue growth of about 26% that is within the range of our guidance due to continued strength in international sales. However, our bottom line was adversely affected in the quarter by expenses for legal work and related costs associated with responding to the previously announced Department of Justice inquiry. Had we not incurred the $1.4 million in legal expenses, Exactech’s net income and EPS results would have been in line with our guidance. We will have more to say in our earnings release and on the conference call.”
Exactech’s orthopedic products are used in the restoration of bones and joints that have deteriorated as a result of injury or diseases such as arthritis. Exactech markets its products in the United States and Australia, in addition to more than 30 markets in Europe, Asia and Latin America.
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