Sirona first quarter revenue increases 9.5% to $258.1 million

Sirona (Nasdaq: SIRO), the dental technology leader, today announced its financial results for the quarter ended December 31, 2011.

First Quarter Fiscal 2012 vs. First Quarter Fiscal 2011 Financial Results

Revenue was $258.1 million, an increase of $22.5 million or up 9.5% (up 10.2% on a constant currency basis), with growth rates for the Company's business segments as follows: Imaging Systems increased 23.8% (up 24.3% constant currency); Instruments increased 7.5% (up 8.4% constant currency); Treatment Centers increased 3.0% (up 3.8% constant currency); and CAD/CAM increased 1.0% (up 1.5% constant currency). Revenue in the United States increased 2.0%, while revenues outside the United States increased 12.7% (up 13.6% constant currency), with particularly robust performance in the Asia Pacific region.

Gross profit was $138.8 million, up $8.4 million. Gross profit margin was 53.8% in the first quarter of Fiscal 2012, compared to 55.3% in the prior year. Gross profit margin as a percent of sales was mainly impacted by product mix.

First quarter 2012 operating income excluding amortization expense was $66.6 million (operating income of $54.3 million plus amortization expense of $12.3 million, compared to $69.5 million (operating income of $56.0 million plus amortization expense of $13.5 million) in the first quarter of 2011.

Net income for the first quarter of 2012 was $38.3 million, or $0.67 per diluted share, versus $42.4 million, or $0.75 per diluted share in the prior year period. Non-GAAP earnings per diluted share for the first quarter of 2012 was $0.91 compared to $0.96 in the prior year quarter.

At December 31, 2011, the Company had cash and cash equivalents of $105.7 million and total debt of $130.0 million, resulting in net debt of $24.3 million. This compares to net debt of $22.5 million at September 30, 2011.

Jost Fischer, Chairman and CEO of Sirona commented: "I am pleased to report solid results for the first quarter of fiscal 2012. The Imaging segment led our growth, up 24% constant currency, with continued strong sales of 2D and 3D imaging systems. Revenue growth was particularly strong in the Asia Pacific region, driven by our innovative product line and our expanded presence in these markets. These results demonstrate the effectiveness of our strategy to build out our global sales and service infrastructure and position us well for continued robust revenue growth in the second quarter and for the full fiscal year 2012."

Fiscal 2012 Guidance

Management now anticipates fiscal year 2012 constant currency revenue growth at the upper-end of the announced guidance range of 6% to 8%. Operating income plus amortization is now expected to be in the range of $227 to $234 million (previously $225 to $234 million).