ConMed
revises earnings, settles suits
Mar. 22, 2003
BILL
FARRELL
Observer-Dispatch
ConMed
Corp. is revising its previously announced net income
for the fourth quarter and the year 2002 because of
a litigation settlement, company officials said.
The
company has agreed to make a one-time payment of $1.5
million to the Ludlow division of Tyco International
Ltd., parent company of Kendall Co. in Oriskany Falls,
over a dispute regarding gel used in some of the company's
EKG electrodes.
As
a result, officials said ConMed's net income was now
$7.9 million, or 27 cents per diluted share for the
fourth quarter, and $34.2 million, or $1.23 per diluted
share, for the full year.
The
company previously announced a net income of $9.2 million,
or 32 cents per diluted share for the fourth quarter,
and $35.4 million, or $1.27 per diluted share, for the
full year.
Meanwhile,
ConMed also announced that a $9.5 million settlement
from Bristol Myers-Squibb Co. in another litigation
would be recorded as an after-tax gain of about $5.8
million in the first quarter of this year, or approximately
20 cents per diluted share.
The
settlement resolved a contractual dispute related to
the 1997 acquisition of Linvatec Corp., ConMed's sports
medicine and surgical instrument subsidiary.
"We
are quite pleased to have come to resolution on both
of these matters," President and Chief Operating
Officer Joseph J. Corasanti said.
Stock
analyst Gregory McLean praised the medical technology
company's decision in both matters.
While
the $1.5 million payment is "not a positive,"
said McLean, president of Caruso McLean & Co. Inc.
in Utica, it was a one-time occurrence.
ConMed's
decision to pay down its debt is in keeping with what
analysts look for in a company: steady growth and a
solid balance sheet, McLean said.
CONMED
Location:
525 French Road, Utica.
Number
of employees: 2,500 worldwide; about 1,000 in the Mohawk
Valley.
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:
Nasdaq, ticker symbol CNMD.
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