Company Press Release
SOURCE: Osteotech, Inc.
Osteotech Indicates That Third Quarter 1999 Results Will Not Meet Analysts Consensus Estimates
EATONTOWN, N.J., Sept. 27 /PRNewswire/ -- Osteotech, Inc. (Nasdaq: OSTE - news) indicated today that it does not expect third quarter 1999 revenue and earnings results to meet analysts consensus estimates for the quarter. Revenue is anticipated to grow in the third quarter ending September 30, 1999 by 19% to 26% or to $17,000,000 to $18,000,000 compared to $14,283,000 in the third quarter 1998. Third quarter diluted earnings per share are currently estimated at $.15 to $.17 compared to $.19 diluted earnings per share in third quarter 1998. Analysts diluted earnings per share consensus estimates for third quarter 1999 is $.24.
Richard W. Bauer, Osteotech's Chief Executive Officer stated, ``We're certainly disappointed that our anticipated third quarter 1999 results will not meet analysts estimates, however, we expect to maintain our revenue growth momentum and return to more favorable earnings growth in the fourth quarter. Third quarter anticipated revenue performance is being impacted by a general softness in surgical procedures during July and August, continued competitive pressures causing a slower than expected growth of Grafton© Demineralized Bone Matrix (DBM), and bio-d(TM) Threaded Cortical Bone Dowel revenues that will be less than were expected due to the summertime launch of the anterior approach system. Anticipated net income and diluted earnings per share will be negatively impacted by lower gross profit margins due to the currently anticipated product revenue mix, new product launch costs without sufficient offsetting revenues and higher then expected legal fees related to defending recent patent law suits.'
Mr. Bauer concluded, ``Notwithstanding our expected performance in the third quarter, we anticipate that fourth quarter 1999 performance will be much stronger. We are encouraged by results of the first three weeks of September which indicate that Grafton© DBM revenues have resumed a more normal growth pattern and that bio-d(TM) Threaded Cortical Bone Dowel revenues are growing more strongly and are more in line with our launch plan expectations. Additionally, our expansion plans in Europe remain on target. We still expect to begin shipments of Grafton© DBM to Germany during early fourth quarter and OST Developpement, SA has started the processing of human femoral heads in September, as expected, for distribution in France beginning in the fourth quarter.'
Certain statements made throughout this press release that are not historical facts, particularly those made in the immediately preceding paragraph, contain forward-looking statements (as such are defined in the Private Securities Litigation Reform Act of 1995) regarding the Company's future plans, objectives and expected performance. Any such forward-looking statements are based on assumptions that the Company believes are reasonable, but are subject to a wide-range of risks and uncertainties and, therefore, there can be no assurance that actual results may not differ materially from those expressed or implied by such forward-looking statements. Factors that could cause actual results to differ materially include, but are not limited to, differences in anticipated and actual product and service introduction dates, the ultimate success of those products and services in the market place, the continued acceptance and growth of current products and services, the impact of competitive products and services and the success of cost control and margin improvement efforts, which factors are detailed from time to time in the Company's periodic reports (including the Annual Report on Form 10-K for the year ended December 31, 1998 and the Form 10Q for each of the first two quarters of 1999) filed with the Securities and Exchange Commission.
Osteotech, Inc., headquartered in Eatontown, New Jersey, is a leading provider of human bone and bone connective tissue for transplantation and an innovator in the development and marketing of biomaterial and implant products for musculoskeletal surgery.
SOURCE: Osteotech, Inc. |
