Revenues at CryoLife rose 21% to $26.8 million in the third quarter of 2008. Net income was $3.6 million, or $0.13 per share, compared to $1.9 million, or $0.07 per share in Q3 2007.
Tissue processing revenues in Q3 2008 increased 25% to $14.2 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 $38,000 in revenues from that division this quarter, compared to $566,000 in Q3 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 24% in Q3 2008.
BioGlue sales grew by 13% to $11.6 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 February’s FDA clearance of its SynerGraft pulmonary heart valve and the expanded distribution of BioGlue, should position CryoLife for strong growth in 2009. The company expects 2009 full year revenues to be between $116 million and $122 million. CryoLife has $20.5 million in cash on hand.
