MARRECCA FIORE
Observer-Dispatch

UTICA -- ConMed Corp. reported increased sales and earnings Thursday for the first quarter of this year.

Sales increased to $118 million ($115.5 million at current exchange rates), compared to $113.2 million in the first quarter of 2002. Net income for the first quarter was $14.6 million or 50 cents per diluted share, up from $9.1 million or 35 cents per diluted share in the same period last year.

The company's first quarter income includes a one-time net after-tax gain of $4.6 million or 15 cents per diluted share due to the receipt of a lawsuit settlement and acquisition and financing-related charges. Without the one-time gain, net income and earnings per diluted share were $10 million and 35 cents, respectively.

ConMed announced last month that it had settled a lawsuit related to its 1997 purchase of Linvatec Corp. for $9.5 million. The company has also purchased four companies recently.

"I am pleased that we achieved record sales of $118 million ... although this was at the lower end of our expectations," said Joseph J. Corasanti, ConMed president and chief operating officer.

"Our cost management measures and favorable foreign currency translation enabled us to achieve our targeted operating income, and our litigation settlement permitted us to pay down additional debt." he said.

Stock analyst Gregory McLean, president of Caruso McLean & Co. Inc., said ConMed's earnings were in line with Wall Street's expectations and showed "nice progress."

"It shows the continuation of a strong trend," he said. "The stock is up ... So obviously, it's being viewed well by investors."

Sales of the company's arthroscopy, powered surgical instrument and endoscopy lines were up and electrosurgery and patient care revenues were stable in the first quarter.

ConMed anticipates sales of $117 million to $122 million and diluted earnings per share of 34 to 37 cents for the second quarter, a news release said.

"We remain comfortable with our full-year forecast for top-line growth of 10 percent over 2002 levels and diluted earnings per share of $1.47 to $1.51," Corasanti said.

The earnings per share forecast excludes the benefit of the lawsuit settlement and the charges for acquisition and financing items, he said.

"That's consistent with what they've been saying," McLean said of the company's projections. "So it's encouraging that they're confirming that. This is a difficult environment and to see their growth expectations is encouraging."

CONMED FACTS:

Location: 525 French Road, Utica.

Number of employees: 2,500 worldwide; about 1,000 in the Mohawk Valley.

On the Web: www.conmed.com

Operations: A leading developer, manufacturer and supplier of arthroscopic products, electrosurgical systems, powered instruments, ECG electrodes and other surgical and patient-care products.

Stock: Traded on Nasdaq under the ticker symbol CNMD. It closed at $17.67, up 42 cents.