Kirschner Medical Corp. posts 68% drop in profit

August 06, 1994|By a Sun Staff Writer

Kirschner Medical Corp., which has agreed to be sold to Biomet Inc., said yesterday that second-quarter net income fell 68 percent June 30 compared with the same period last year, largely because of delays getting new products to market.

Excluding discontinued operations and extraordinary items, the company reported earnings declined to $273,000 in the most recent period, from $608,000 a year ago.

Revenues at the Timonium-based company, which makes joint reconstruction systems, surgical instruments and orthopedic support products, were also down in the quarter, mostly as the result of lower sales in the company's Spanish subsidiary.

Lower revenues for the first six months of the year were primarily attributed to the lower value of the Spanish peseta compared with the same period last year.

While domestic orthopedic sales were up, the overall drop in sales was the result of a change in distribution methods for orthopedic support products, said Chief Executive Officer C. Scott Harrison. "The company is exploring ways to respond to these pressures," he said.

The company, target of a three-way on-again, off-again takeover battle over the past several months, said last week that it would accept a buyout offer from Biomet for $10.75 a share, or about $37 million.

Kirschner Medical Corp.

Ticker .. ... Yesterday's Symbol .. ... Cls. ... Chg.

KMDC .. ... ..10 1/4 Unch.

Period ended

6/30/94 .. ... 2nd qtr. .. ... Year ago ... ..Chg.

Revenue .. ... $17,162 .. .. ..$17,723 .. ...-3.2%

Net Income .. .$173 .. ... ... $546 .. ... ..-68.3%

Primary EPS .. $0.05 .. ... ...$0.16 .. ... .-68.8%

.. ... ... ..6 mos. ... .... ..Year ago ... ...Chg.

Revenue ... $33,838 ... .... ..$34,859 .. ... -2.9%

Net Income .$887 .. ... ... ...$3,500* .. ...-74.7%

Primary EPS $0.25 .. ... ... ..$1.05* ... ...-76.2%

Figures in thousands (except per share data and footnotes.)

*Includes extraordinary charge to earnings $171,000, or 5 cents a share.

**Includes extraordinary income of $2.4 million, or 72 cents a share.

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