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Synergetics posts 3.8% decline in fourth-quarter sales
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O'FALLON, Mo. — Synergetics USA reported $13.9 million in sales for the fourth quarter, down 3.8% from $14.5 million reported during the fourth quarter of 2008, the company announced in a press release.
Fourth-quarter net income, which included a tax benefit of $46,000, totaled $87,000, compared with a net income of $1.2 million during last year's fourth quarter.
Ophthalmic sales increased 2.1% to $7.7 million, bolstered by a 5.7% rise in international ophthalmic sales while domestic ophthalmic sales declined 0.3%. The company attributed its ophthalmic sales growth to a higher volume of disposable products, which was neutralized, in part, by a year-over-year decline in capital equipment sales.
Synergetics posted $975,000, or $0.03 per diluted share, in charges related to inventory write-down due to outmoded inventory from the company's materials requirement planning program launched earlier this year.
Fourth-quarter gross profit margin was 51%, compared with 57.8% reported during the same period last year. The one-time inventory write-down reduced the gross profit margin by approximately 6%, the release said.
For fiscal year 2009, Synergetics reported $53 million in total net sales, up 5.8% compared with $50.1 million reported last year. The company attributed its sales growth to higher volumes of disposable products, as well as a boost in disposable product sales through marketing partners — a boost that was partially offset by a decline in capital equipment sales.
Full-year net income decreased 40.1% to $1.6 million, or $0.07 per diluted share, compared with $2.7 million, or $0.11 per diluted share, reported for fiscal year 2008, according to the release.