IRVINE, Calif., Jan. 30, 2001 (PRIMEZONE) -- Interpore Cross International (Nasdaq:BONZ) today released preliminary sales results, posting record revenues for the year ended December 31, 2000. The company cautioned that the revenue results are unaudited and adjustments to revenues or expenses could be required following completion of the year-end audit.
For the year ended December 31, 2000, net sales grew 14% to a record $44.3 million, compared to net sales of $38.9 million in 1999. Total domestic sales reflected an increase of 18% to $35.5 million, compared to $30.1 million in 1999, and total international sales were essentially unchanged at $8.8 million. Sales of spinal implant products increased by 14% to a record $23.7 million, compared to $20.8 million in 1999. Sales of orthobiologic products increased by 14% to a record $20.6 million, compared to $18.1 million in 1999. Within the orthobiologic products category, AGF(tm) products sales increased by $3.5 million or 128%, and sales of synthetic bone products decreased by $1 million or 7%.
Net sales for the fourth quarter of 2000 grew 2% to $10.9 million, compared to net sales of $10.7 million for the fourth quarter of 1999. Total domestic sales increased by 9% to $8.8 million, compared to $8.1 million in 1999, and total international sales decreased by 17% to $2.1 million, compared to $2.6 million in 1999. Spinal implant products sales of approximately $5.6 million were essentially unchanged from the same quarter of 1999. Sales of orthobiologic products increased by 5% to a record $5.3 million in the fourth quarter of 2000, compared to $5.1 million in the fourth quarter last year. Within the orthobiologic products category, AGF products sales increased by $629,000 or 54%, and sales of synthetic bone products decreased by $393,000 or 10%.
David C. Mercer, chairman and chief executive officer of Interpore Cross, commented on the preliminary revenue results for the year: "I'm pleased with our overall revenue performance for the year 2000. We posted record sales for the year in both the orthobiologics and spinal implant product categories despite weakness in sales of our bone graft products and international sales of spinal implant products. AGF products and domestic spinal implant products led the way with sales increases of 128% and 21%, respectively."
Mr. Mercer added comments on the preliminary revenue results for the fourth quarter: "In the spinal implant products category, we were pleased to see U.S. sales growth of 15%. Internationally, we believe the decline in spinal implant products sales was caused primarily by the strong dollar, a surgeons' strike in Korea and several distributor transition issues. Sales of orthobiologics products for the fourth quarter reflected a 5% increase, even with a decline in sales of bone graft products. Sales of AGF products reflected a strong 54% increase to $1.8 million, for an annual run-rate of over $7 million in just a year and a half since AGF was launched nationally."
Separately, Joseph A. Mussey, president and chief operating officer of Interpore Cross, provided an update on the company's launch of the C-Tek(tm) Anterior Cervical Plate System: "The introduction of innovative new spinal implants is critical to achieving our ambitious growth plans. To that end, I'm pleased to report that we are on schedule to release this exciting new product during the first quarter as planned. Initial interest from surgeons has been outstanding, and we look forward to displaying the C-Tek at the upcoming Academy of Orthopaedic Surgeons meeting in San Francisco at the end of February. This is the first of several new products we expect to introduce this year."
Interpore Cross said that the early release of revenue information is being made in connection with its upcoming presentation at the U.S. Bancorp Piper Jaffray Health Care Conference in New York, NY. The time slot currently scheduled for Interpore Cross' presentation is Thursday, February 1, 2001 at 4:00 PM (EST). U.S. Bancorp Piper Jaffray will be providing a live webcast of the conference. The internet link to the webcast, www.gotoanalysts.com/healthcareconference, will also be available on Interpore Cross' website at www.interpore.com. Beginning on February 2, there will be a replay of the webcast available through February 6, 2001 which can be accessed via a link on the Interpore Cross website.
Interpore Cross International is a medical device company that designs, manufactures and markets spinal implant devices and orthobiologic products on a worldwide basis. The spinal products are used to treat degenerative conditions, deformities and trauma of the spine. The orthobiologic products are used for bone and soft tissue repair in orthopedic and other applications.
Certain statements in this release are forward-looking and may involve risks and uncertainties, including, but not limited to: risks that the company will not be able to successfully introduce new products or introduce them on a timely basis; risk that the company will not achieve estimated sales levels; product demand and market acceptance risks; risks that future sales growth may decline; risk that agents or distributors will be unsuccessful in sales of products; risk that the company will not receive regulatory approval of products; the risk of intellectual property litigation; and the impact of competitive products. Additional information on factors that could affect the company's financial results and growth prospects is disclosed in the company's reports filed from time to time with the Securities and Exchange Commission.