CryoLife on Firm Footing: EPS Increases, Revenues Up, Raises Guidance

Revenues at CryoLife rose 4% to $25.6 million in the first quarter of 2008. Net income was $2.8 million, or $0.10 per share, compared to $1.4 million, or $0.04 per share in Q1 2007.

Tissue processing revenues in Q1 2008 increased 4% to $13.4 million, primarily due to increased demand for the company’s cardiac and vascular processed tissues, and, to a lesser extent, price increases.

Notably, CryoLife was able to increase revenues despite curtailing its orthopedic tissue processing business. The company realized only $327,000 in revenues from that division this quarter, compared to $1.8 million in Q1 2007.

CryoLife discontinued processing orthopedic tissue in the first quarter of 2007 pursuant to an agreement signed with a competitor in December 2006. Excluding this segment, total revenues at the company increased 11% in Q1 2008.

BioGlue sales grew by 6% to $11.9 million in the most recent quarter. BioGlue is an FDA approved surgical adhesive used to bond or reinforce soft tissue in a variety of indications.

The continued improvements in the company’s core business, along with recent FDA clearance of its SynerGraft pulmonary heart valve and the private label agreement with Medaphor for Hemostase MPH, should position CryoLife for strong growth in 2008.

Accordingly, the company has expects a modest increase in full year revenues and has raised guidance from $101 – 106 million to $102 – $107 million.

CryoLife has $12.9 million in cash on hand.

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