Sirona (Nasdaq:SIRO), the dental technology leader, today announced its financial results for the quarter ended March 31, 2014.
Second Quarter Fiscal 2014 vs. Second Quarter Fiscal 2013 Financial Results
Revenue was $282.7 million, an increase of $15.4 million or up 5.7% (and up 2.9% on a constant currency basis). The Company's business segments performed as follows: Instruments increased 13.4% (up 9.3% on a constant currency basis), Imaging Systems increased 5.0% (up 2.8% on a constant currency basis), CAD/CAM Systems increased 5.0% (up 2.5% on a constant currency basis), and Treatment Centers increased 4.6% (up 0.8% on a constant currency basis).
Revenue in the United States increased 4.5%, and revenues outside the United States increased 6.2% (up 2.3% constant currency). U.S. revenues benefited from continued demand for our Imaging and CAD/CAM products. Growth was driven by new user demand for our CAD/CAM products. Sales growth in international markets was driven by Asia Pacific, led by Japan.
Gross profit was $151.5 million, up $6.8 million. Gross profit margin was 53.6% in the second quarter of Fiscal 2014, compared to 54.1% in the prior year. The change in gross profit margin as a percent of sales was mainly driven by foreign exchange impacts as well as product and regional sales mix.
Net income attributable to Sirona Dental Systems, Inc. for the second quarter of 2014 was $37.3 million, or $0.66 per diluted share, versus $31.8 million, or $0.56 per diluted share in the prior year period. Non-GAAP adjusted earnings per diluted share for the second quarter of 2014 was $0.80 compared to $0.75 in the prior year quarter, or an increase of 6.3%. A reconciliation of the non-GAAP measure to earnings per share calculated on a GAAP basis is provided in the attached table.
At March 31, 2014, the Company had cash and cash equivalents of $255.3 million and total debt of $79.6 million, resulting in net cash of $175.7 million. This compares to net cash of $135.4 million at December 31, 2013.
Jeffrey Slovin, President and CEO of Sirona, commented: "During the second quarter, Sirona grew 6.9% in local currencies, on top of 16.7% growth in the second quarter last year. Our strong results were driven by the U.S. and Asia Pacific. Japan performed particularly well ahead of a planned tax increase."
Mr. Slovin continued: "Treatment Centers and CAD/CAM each had record quarters. Increased new user demand drove CAD/CAM growth of 7.6% in local currencies, on top of 23% growth in the second quarter last year. For the second quarter in a row, Instruments was our fastest growing segment, up 12.9% in local currencies."
Mr. Slovin added: "Continuous innovation combined with our world class sales and service infrastructure is the engine that drives Sirona. Our product pipeline is full of exciting new products with compelling advancements, some of which will be introduced in the near future. "
Fiscal 2014 Guidance
Management reiterates guidance of FY14 constant currency revenue growth of 4% to 6% and non-GAAP adjusted EPS* in the range of $3.60 to $3.70 (reflecting growth of approximately 6% to 9%).
Conference Call/Webcast Information
Sirona will hold a conference call to discuss its financial results at 8:30 a.m. Eastern Time on May 9, 2014.
Sirona Dental Systems, Inc.