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Synergetics USA (SURG) – Buzz Stock of the Day

Posted on Wednesday, April 28th, 2010

Shares of medical device maker Synergetics USA, Inc. (Nasdaq: SURG) were up as much as 72 percent today after the company said Alcon Laboratories Inc (ACL.N) agreed to pay $32 million for the right to sell some of Synergetics’ products worldwide and to settle all pending litigation between the two companies.


Earlier this month, Synergetics announced a strategic agreement with Stryker Corporation. The agreement includes the sale of Synergetics’ accounts receivable, open sales orders, inventory and certain intellectual property related to the Omni® product line. In addition, the agreement provides for Synergetics to supply disposable ultrasonic instrument tips and certain other consumable products used in conjunction with the Sonopet/Omni® ultrasonic aspirator console and handpieces; and pursue certain development projects for new products associated with Stryker’s intraoperative ultrasound products.

Synergetics will receive between $2.5 million and $3.0 million in proceeds from the transactions once all inventory transfers are completed.

For the quarter ended Jan. 31, Synergetics profit more than doubled to $877,000, or 4 cents per share, from $389,000, or 2 cents per share, in the same period a year earlier. Second quarter revenue slipped to $13 million from $13.7 million due to lower sales neurosurgical products

The company reduced its sales and marketing costs by about $900,000, and trimmed its general and administrative and research and development spending.

Shares of Synergetics have been up as much as 139 percent over the past three months.



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This entry was posted on Wednesday, April 28th, 2010 at 7:57 pm by admin and is filed under Health Care Stocks. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.

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