Synovis Life Technologies, Inc.: A healthy prognosis

Alex Alexandrov | Nov 01, 2007 11:18am EDT | Comment

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Synovis Life Technologies, Inc. (Nasdaq: SYNO)
St. Paul, MN 55114
http://www.synovislife.com/

52-week low / high: $7.10 / $24.61
Shares Outstanding: 12.29 million
Market Capitalization: $299.50 million

Synovis Life Technologies, Inc. (Nasdaq: SYNO) is a medical devices maker with a healthy prognosis.

The St. Paul, Minn.-based company operates two distinct business units—interventional and surgical.

The interventional business unit develops and manufactures coils, helices, stylets, guidewires, and other components for the medical device industry. Most of the products are used by manufacturers in cardiac rhythm management and in neurostimulation devices. During the fiscal third quarter ended July 31, the most recent quarter for which data are available, interventional business revenue rose 45% to $8.3 million, from $5.7 million a year earlier.

Synovis’ surgical unit, which makes implantable biomaterial products to either reduce the risks of surgery or facilitate a positive outcome, had also been delivering strong growth. Revenue for the third quarter reached $9.9 million, an increase of 35% from $7.3 million a year ago.

The revenue increases helped Synovis turn the corner by reporting a net income of $1.2 million, or $0.10 per share, compared with a net loss of $0.53 million, or $0.04 per share, during the same three months in 2006. That result pleasantly surprised analysts, who were looking for earnings of $0.05 per share.

The company is in a strong cash position, with no long-debt and $49.8 million in cash, equivalents and short-term investments as of July 31, 2007, compared with $47.0 million at the end of fiscal 2006.

Analysts are forecasting that Synovis will end fiscal 2007 with earnings of $0.26 per share, compared with a net loss of $0.12 per share in fiscal 2006.

For more information on Synovis, see Synovis Life Technologies: A cure for your portfolio?, Sept. 6, 2007, SmallCapInvestor.com.

Note: Synovis Life Technologies, Inc. (Nasdaq: SYNO) is on the “Watch List” of Growth Report, a subscription investment newsletter from Business Financial Publishing, which also publishes SmallCapInvestor.com. As a Watch List company, Synovis displays many characteristics found in successful stock winners, and is being closely monitored for possible inclusion in the Growth Report portfolio at a later date.