Sirona fourth quarter revenue increases 19.6% to $218.8 million

Sirona (Nasdaq: SIRO), the dental technology leader, today announced its financial results for the quarter and fiscal year ended September 30, 2011.

Fourth Quarter Fiscal 2011 vs. Fourth Quarter Fiscal 2010 Financial Results

Revenue was $218.8 million, an increase of $35.9 million or up 19.6% (up 11.8% on a constant currency basis), with growth rates for the Company's business segments as follows: Imaging Systems increased 42.9% (up 37.1% constant currency); CAD / CAM increased 10.9% (up 3.9% constant currency); Instruments increased 11.3% (up 1.6% constant currency); and Treatment Centers increased 2.7% (down 6.4% constant currency). Revenue in the United States increased 13.5%, while revenues outside the United States increased 21.9% (up 11.3% constant currency), with strong growth in Asia Pacific and the Middle East.

Gross profit was $110.7 million, up $17.6 million. Gross profit margin was 50.6% in the fourth quarter of Fiscal 2011, compared to 50.9% in the prior year. Gross profit margin as a percent of sales was impacted by product mix and the strengthening of the Euro relative to the Dollar.

Fourth quarter 2011 operating income excluding amortization expense and a one-time, non-cash compensation charge was $45.5 million (operating income of $25.0 million plus amortization expense of $13.9 million, plus the $6.6 million charge), compared to $37.9 million (operating income of $23.2 million plus amortization expense of $14.7 million) in the fourth quarter of 2010.

Net income for the fourth quarter of 2011 was $13.8 million, or $0.24 per diluted share, versus $24.7 million, or $0.44 per diluted share in the prior year period. Non-GAAP earnings per diluted share for the fourth quarter of 2011 was $0.68 compared to $0.44 in the fourth quarter of 2010.

At September 30, 2011, the Company had cash and cash equivalents of $345.9 million and total debt of $368.4 million, resulting in net debt of $22.5 million. This compares to net debt of $119.0 million at September 30, 2010.

Jost Fischer, Chairman and CEO of Sirona commented: "I am delighted to report that fiscal 2011 was a very successful year for Sirona. We posted record revenues and earnings, strengthened our balance sheet, introduced exciting new products, and had an impressive showing at the International Dental Show. Our new products demonstrate the Company's continued focus on innovation and the benefits we derive from our industry-leading investments in research and development. These factors, plus our ongoing initiatives to build out our global sales and service infrastructure position us well to compete and win in fiscal 2012 and beyond."

Fiscal 2012 Guidance

Management anticipates fiscal 2012 revenue growth in the range of 6% to 8% on a constant currency basis, and operating income, excluding amortization estimated at $52 million, to be in the range of $225 to $234 million.

Fiscal 2011 vs. Fiscal 2010 Financial Results

Revenue was $913.9 million, an increase of $143.6 million, or 18.6% (up 16.4% constant currency) with growth rates for the Company's business segments as follows: Imaging Systems increased 26.6% (up 24.8% constant currency); CAD/CAM increased 17.8% (up 15.9% constant currency); Treatment Centers increased 13.3% (up 10.2% constant currency); and Instruments increased 8.5% (up 5.6% constant currency). Revenue in the United States increased 6.8% compared to prior year, driven by the Imaging and CAD/CAM segments. Outside the United States, revenue increased 24.0% (up 20.5% constant currency). Revenue growth was particularly strong in Europe, led by Germany, as well as in the Asia-Pacific markets.

Gross profit increased by $84.6 million to $483.7 million, up 21.2%. Gross profit margin of 52.9% was up 110 basis points compared to the prior year, mainly driven by lower levels of deal related amortization.

Fiscal 2011 operating income excluding amortization expense and a one-time, non-cash compensation charge was $222.5 million (operating income of $160.9 million plus amortization expense of $54.9 million, plus the $6.6 million charge). This compares to 2010 operating income excluding amortization expense of $188.9 million (operating income of $128.1 million plus amortization expense of $60.8 million).